The current economic downturn is forcing more and more U.S. motorists to forgo their car insurance coverage to save money. This was the conclusion of a series of surveys conducted by various private enterprises and insurance institutes.
According to the Insurance Research Council (IRC), as much as one out of six motorists on the nation’s roads maybe driving without insurance. The IRC says that the alarming figure is due to the worsening economic condition in the U.S.
The IRC also disclosed that an estimated nine percent of the respondents confessed to dropping their auto insurance coverage because of the tough economic conditions. Despite this, twenty-eight percent of the same respondents went looking for more affordable insurance rates instead of driving uninsured.
All across the country, motorists are increasingly worried that car insurance companies may increase rates this year. A comScore 2009 research indicates that fifteen percent of American drivers are confident that their providers would not hike rates while seventy-two percent said they were still unsure.
SaveTodayAutoInsurance.com’s founder Jim Musselwhite says that even with the poor economy, there are three very good reasons for drivers not to drop their coverage.
Musselwhite says that the first and most important reason is that driving without car insurance is a crime. He explains that when uninsured drivers do get into an accident, they face steep fines, suspended licenses, and even jail time.
The second reason, Musselwhite says, is that car insurance premiums will increase when drivers renew their policies. Lapsed coverage can also mean substantial surcharges for drivers who want to renew their policies.
Musselwhite concludes by discussing the last reason. He says that driving uninsured can make drivers invite stiff fines and penalties from insurance providers. Insurance companies can impose twenty-five to fifty percent surcharges because they consider drivers like these as irresponsible and high-risk.