One side of the economy worsening? Experts predict that there will be more and more uninsured motorists on the road. A recent study (PDF) of the Insurance Research Council (IRC) said that next year, we can expect that about one in six drivers across the country may be driving without insurance. The report found a strong correlation between the percent of uninsured motorists and the unemployment rate: "An increase in the unemployment rate of one percentage point is associated with an increase in the uninsured motorist rate more than three-quarters of a percentage points. Based on current projections of unemployment, it is expected that the percentage of uninsured motorists to rise from 13.8 in 07 to 16.1 in 2010 ".
According to the state in which you live, the problem may be more or less severe. The five states with the highest uninsured driver rates in 07 were:
- 29% - Mexico
- 28% - Mississippi
- 26% - Alabama
- 24% - Oklahoma
- 23% - Florida
the five states with the lowest rate of uninsured in 07 pilots were:
- 1% - Massachusetts
- 4% - Maine
- 5% - North Dakota
- 5% - New York
- 6% - Vermont
page 3 of this report IRC includes a graph showing the percentage of uninsured drivers in your state. (PDF)
Pay the price
Driving without insurance can be expensive. It is against the law to drive without liability insurance in all states, but Wisconsin and New Hampshire, both of which require drivers to have what is in effect self-insurance, or proof that they can pay a minimum of damage. The penalties for uninsured driving can include fines, license or registration suspension, vehicle impoundment, and the potential of imprisonment. For example, here in Massachusetts, the penalties for driving without insurance can include a fine of $ 500.00 $ 5000, up to 1 year in prison, or both. Your license may also be suspended. FindLaw offers links to state laws for driving without insurance or with insufficient insurance.
Check your own cover
In good economies and bad, the cost of an accident with an uninsured driver can be steep. IRC estimates the average payment on claims in collision with an uninsured driver is about $ 11,000. Your chances of recovery depend on your own blanket and / or financial assets of the uninsured - who may be poor, since it is the most likely reason for not first have insurance. It is a good idea to evaluate your level of cover with your independent agent to ensure you have adequate coverage. If you have not already, you may want to learn about the uninsured and under insured motorist coverage. These types of coverage would pay for harm or damages if you are in an accident with an uninsured or underinsured motorist or if you are victim of a hit-and-run.
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