Poor Economy Encourages Drivers to Drive Without Car Insurance
Unemployment is at an all time high, banks have foreclosures backed up so far that they're willingly working out payment plans and forgiving loans that are months behind so they don't have to try and handle yet another property, and Americans from coast to coast are cutting back on spending as much as possible.
One of those cut backs is coming in the form of dropped car insurance policies.
If you've seen traffic in many of today's highly populated urban areas you're probably wondering what on earth would possess anyone to drive on these highways without car insurance.
The bottom line is that some families simply can't afford it anymore.
Gas and registration are pushing their allocated expenditures as far as they will go, and since you're only required to provide proof of insurance once a year they can register their car, drop their insurance policy and put that $100 or so a month back into their budget.
The number of drivers that are taking precisely that route is growing rapidly.
In places such as Florida and Oklahoma as many as 25% of all of today's drivers are traveling without any form of insurance protection, and the number is expected to climb even higher in the coming year.
Experts estimate that by 2010 as much as 16% of the nation's drivers will have dropped their car insurance policies-an all time high that's placing everyone at risk.
For drivers who don't have no-fault car insurance, this loss is particularly hazardous.
Insurance companies assume that if their driver hasn't caused an accident they're off the hook when it comes to having to pay for it.
Most uninsured drivers don't have thousands of dollars lying around to pay for the four digit cost of repairs not only to their own vehicle, but also to that of the driver they hit.
That's going to leave the driver that wasn't at fault having to choose between sticking to their principles and paying for their won repairs just to get their car back on the road.
Since very few people have that kind of money lying around just waiting to be spent on car repair, car insurance providers are making it easy.
For very little extra added onto their monthly premiums drivers can purchase uninsured motorist coverage.
If they are involved in an accident with a driver who doesn't have car insurance, or whose coverage isn't sufficient to cover the damages they caused, their own insurance company will pick up the difference.
Since it's a safe bet that their insurance provider will want the claim settled as quickly as possible the driver can count on having their car back on the streets and their lives back to normal as quickly as possible.
When you purchase uninsured motorist insurance you give up your right to prosecute the other driver for the damages, but the efficiency with which your car insurance will settle your claim will more than make up for the justice that you won't see done.
In these recessionary times it's impossible to predict the lengths to which drivers will go to save a little money.
Climbing numbers of uninsured motorists on the road mean that as a driver you should do everything possible to protect yourself and your family from the financial hazards of an accident.