Insurance regulators and safety activists describe with alarm a developing climate in which many drivers are scaling back or even dropping their auto insurance coverage completely in order to save money during the economic downturn.
In California, auto insurance is required if a person intends to operate a motor vehicle upon the roads and highways. This requirement essentially ensures that most California Drivers maintain at least a minimum policy in the event of a collision.
However, despite the generally recession-proof nature of the insurance industry, some insurance agencies are reporting that up to 20% of their clients either dropped their automobile policies or missed payments in recent months. Others warn that we may be looking at record numbers of uninsured motorists across the nation.
Industry figures seem to back up that concern. An auto insurance industry study now warns that an increasing number of drivers may not be insured by the end of 2009. By 2010, 1 of every 6 drivers on U.S. roadways is likely to be uninsured, according to the Insurance Research Council.
The failure to obtain coverage, retain coverage or ensure sufficient coverage is directly attributable to the sour economy. Oftentimes people cannot afford even the minimum liability coverage required under state law. Food , rent and children are more immediate concerns. However, regardless of how tight finances get, terminating or reducing auto insurance coverage is potentially the worst option to save money, say law enforcement officials and insurance industry representatives.
Uninsured motorists may face legal fees, fines, and penalties, including a suspended license. In addition, the costs involved when an accident occurs can total in the tens of thousands for property damage and in the hundreds of thousands for medical treatment. In California, which does not have "no-fault" insurance laws, an uninsured or underinsured motorist could also be liable for the bills of other drivers or passengers, who could sue and, if successful, seize your assets and bank accounts and garnish your wages.
The National Association of Insurance Commissioners, which represents insurance regulators in all 50 states, said most Americans were woefully uninformed about what was covered by their auto policies. A quarter of Americans rarely or never review their policies, the association reported in a survey, while three-fifths review their coverage only when they file a claim or renew their policies. As a result, tens of millions of Americans are driving around with policies that don't reflect major changes in their incomes and family situations, it said.
Driving without any coverage is both against the law and very dangerous. Getting in an accident with someone without insurance or minimal coverage can be devastating. If this has happened to you, please call Cohn & Swartzon, P.C. and speak with an attorney regarding your rights.
Some information derived from the following article by Alex Johnson:
URL: http://www.msnbc.msn.com/id/30093235/
In California, auto insurance is required if a person intends to operate a motor vehicle upon the roads and highways. This requirement essentially ensures that most California Drivers maintain at least a minimum policy in the event of a collision.
However, despite the generally recession-proof nature of the insurance industry, some insurance agencies are reporting that up to 20% of their clients either dropped their automobile policies or missed payments in recent months. Others warn that we may be looking at record numbers of uninsured motorists across the nation.
Industry figures seem to back up that concern. An auto insurance industry study now warns that an increasing number of drivers may not be insured by the end of 2009. By 2010, 1 of every 6 drivers on U.S. roadways is likely to be uninsured, according to the Insurance Research Council.
The failure to obtain coverage, retain coverage or ensure sufficient coverage is directly attributable to the sour economy. Oftentimes people cannot afford even the minimum liability coverage required under state law. Food , rent and children are more immediate concerns. However, regardless of how tight finances get, terminating or reducing auto insurance coverage is potentially the worst option to save money, say law enforcement officials and insurance industry representatives.
Uninsured motorists may face legal fees, fines, and penalties, including a suspended license. In addition, the costs involved when an accident occurs can total in the tens of thousands for property damage and in the hundreds of thousands for medical treatment. In California, which does not have "no-fault" insurance laws, an uninsured or underinsured motorist could also be liable for the bills of other drivers or passengers, who could sue and, if successful, seize your assets and bank accounts and garnish your wages.
The National Association of Insurance Commissioners, which represents insurance regulators in all 50 states, said most Americans were woefully uninformed about what was covered by their auto policies. A quarter of Americans rarely or never review their policies, the association reported in a survey, while three-fifths review their coverage only when they file a claim or renew their policies. As a result, tens of millions of Americans are driving around with policies that don't reflect major changes in their incomes and family situations, it said.
Driving without any coverage is both against the law and very dangerous. Getting in an accident with someone without insurance or minimal coverage can be devastating. If this has happened to you, please call Cohn & Swartzon, P.C. and speak with an attorney regarding your rights.
Some information derived from the following article by Alex Johnson:
URL: http://www.msnbc.msn.com/id/30093235/
