Recession Affecting Auto Insurance Decisions

By Kaitlin Lanier

With the economic downfall, drivers are illegally deserting their car insurance, putting themselves and other drivers in danger. As the jobless list increases, people are dropping their insurance or looking for discount auto insurance, in order to save money. As a result, drivers that are insured will end up paying more, with the costs of the uninsured drivers being distributed among the insured. If an uninsured driver hits an insured operator, the victim may need to sue to recover damages, causing more trouble and a longer process for the insured. All of this could mean 3 million more uninsured drivers on the road in 2010 than in 2005, based on U.S. Department of Transportation data.

In order to combat against these uninsured drivers, you can make sure you have extra coverage that compensates you if you are hit by an uninsured motorist. Also, setting your own liability insurance amount to be equal with your assets will help determine the limit of your uninsured motorist coverage. Some states are required drivers to carry uninsured motorist coverage, but it is recommended if your state does not, although it may increase your premium. Uninsured drivers are dangerous and could lead to potential disasters. Therefore, it is ideal to take the necessary steps to protect yourself against such careless drivers.

Sources:

Crash Course: More drivers are going without insurance in down economy, Jan. 4, 2009. Cheapest Car Insurance, Jan. 26, 2009. http://cheapest-cars-insurance.blogspot.com/2009/01/crash-course-more-drivers-are-going.html

More Drivers Going Without Insurance, Jan. 19, 2009. CarInsurance.com, Jan. 23, 2009. http://www.carinsurance.com/news/content4211.aspx

Recession Affecting Auto Insurance Premiums, Dec. 10, 2008. iBankCoin.com, Jan. 26, 2009. http://www.ibankcoin.com/peanut_gallery/index.php/2008/12/10/recession-affecting-auto-insurance-premiums/