Experts: Don’t Drop Insurance, Get Cheaper Ones


Industry analysts have expressed concern over the growing number of Americans hitting the road without insurance. They say that with the poor economy, more and more drivers are choosing to drop their coverage completely and risk fines, penalties, and even jail time.

Experts: Don’t Drop Insurance, Get Cheaper OnesExperts add that costly traffic tickets and possible prison time are not the worst things uninsured motorists have to face. Physical injuries and other damages from an accident can cause uninsured drivers thousands of dollars in liability claims. They can even lose their homes and other assets if the other party decides to file a lawsuit.

Economists say that the number of uninsured motorists on the road could increase significantly in the next few months as the nation’s unemployment rate grows. A recent study conducted by the Insurance Research Council revealed that for every one percent increase in the unemployment rate, the number of uninsured drivers in the country increases by some 0.75 percent. Researchers say that with the unemployment expected to top the ten percent mark by the end of 2009, the number of uninsured motorists could balloon to 16 percent nationwide.

In Illinois, an estimated 1.3 million drivers are uninsured. Motorists caught not having insurance are have their driver’s license suspended for three months. They also have to pay $100 to reinstate their licenses. A recent amendment to state law now penalizes drivers convicted of driving without insurance with a hefty fine ranging from $500 to $1000.

To avoid any more troubles, industry specialists are advising Americans to consider other insurance providers to save money. With savings on everybody’s minds nowadays, the current mentality is to cut back on expenses. Experts say that car insurance should never be sacrificed. Instead, they suggest that drivers shop for coverage from other insurers. Comparing different products and services from various insurance firms can help motorists find the best coverage for their needs, they add.

Analysts also add that more uninsured drivers on the road means a higher chance of getting in a vehicular accident with them.

Policyholders would also do well to purchase additional options to further protect them, their vehicles, and their families. With more uninsured drivers on the road today, experts point out that motorists can add uninsured driver coverage to their policy as a precaution. The option will cover any unpaid damages and expenses in the event that a policyholder gets in an accident with an uninsured driver.