Budget Tight? Skip Paying For Car Insurance.
The Insurance Research Council claims that as the rate of unemployment rises, so will the rate of people not paying for car insurance. Their recent study, Uninsured Motorists 2008 Edition, estimates the uninsured driver population using a ratio of insurance claims made by individuals who were injured by uninsured rivers. In Missouri, the study finds the rate of uninsured motorists to be 14% and rising. The report found a strong correlation between the percent of uninsured motorists and the unemployment rate. An increase in the unemployment rate of one percentage point is associated with an increase in the uninsured motorist rate of more than three-quarters of a percentage point. Based on current unemployment projections, the rate of uninsured motorists in Missouri is expected to rise at least 3% in the next year.
An increase in the number of uninsured motorists will likely result in a rise in premiums for responsible drivers who purchase their own insurance. As insurance companies are forced to cover damage without taking in premiums, they will pass that extra cost on to their responsible customers. Uninsured drivers are at risk of stiff criminal and civil penalties.
Now more than ever, it is imperative that all drivers review their auto insurance policy. Check the coverage of both your uninsured and underinsured motorist coverage. If you are in an auto accident with an uninsured driver or someone covering state minimum coverage, your own insurance policy may need to cover some of your damages. These additional coverages are usually very affordable and can make a huge difference if you find yourself involved in a car accident. If you are unsure if you have uninsured or underinsured motorist coverage on your insurance policy contact your insurance agent or a qualified personal injury attorney.
