The Oklahoma Senate has an upcoming vote on SB 272. The bill was originally proposed to deal with relationships with car dealers and car manufacturers.
The bill was recently amended to incorporate a "no pay, no play" section for consumers. Basically, if you don't have car insurance, and you are in an accident that is not your fault, your pain and suffering damages are zero.
Guess who benefits from this type of legislation? The people that are funding it: insurance companies.
It seems like several times a week I meet with someone that was just in a car accident that owes more on their car than it's worth. Under Oklahoma law, the person that caused the accident does not have to pay what you owe on the car, but the fair market value of the car (assuming it was totaled). How can you help protect against this scenario (and be stuck with car payments and no car!)?
Check out GAP Insurance.
Guaranteed Auto Protection (GAP) insurance pays the difference between the actual value of the car and the remaining balance on the loan. Assuming the premium isn't too high, it's worth considering adding to your policy.