With less purchasing power and with money spent more on gas bills, motorists are cutting back on auto insurance coverage.
Regional insurance companies reported that much of their clients had trimmed on coverage policies. Some drivers have canceled policies they originally purchased when they have the chance and leave only the coverage required by state jurisdiction. Reports show that a major US insurance company that serves motorists from Delaware, Maryland, Washington, Pennsylvania, New Jersey, Virginia, and D.C. experienced having clients who “trim” their auto insurance policies. The same company has reported to have said that a huge number of their existing customers are going for lesser limits on their coverage for bodily injury protection, more deductibles, and more “liability only” coverage at the coverage amount of comprehensive and collision policies.
Auto insurance representatives and industry experts say that the slow-moving economy is pushing many Americans look for changes to save money, including amending their policies to cut back on monthly spending. Major US insurance agencies are afraid that if the trend continues, the results can be alarming. Policyholders who are willing to reduce their coverage levels have a very strong tendency to cancel their policies altogether and cut expenses.
While multi-million insurance carriers in the US blame such a phenomenon to the country’s economic condition which have started a hardship for many motorists, policy holders blame the insurance giants for being too profit oriented and showing very little concern for their customers. Reports say that customers only decide to cancel certain coverage on their policy because their insurance agents are not reasonable enough when it comes to payment terms and other concerns.
On the other hand, whoever it is to be blamed for canceled policies, the government is concerned that the situation continues, public safety may be at risk. Drivers who have too little or no vehicle insurance at all could create an even worse situation. According to the U. S. Department of Transportation, statistics show that an average motorist will be involved in a near automobile accident 1 to 2 times per month and chances are, he will be involved in a collision every six years.
Officials of top auto insurance companies say that there are now more underinsured and uninsured drivers on the road than drivers who have complete protection. Insurance companies advise that families who are looking for means to save cash in these difficult economic times can find a lot of ways to cut back on insurance premiums without placing any family member in financial and legal risk.