Economy Drives Some to Drop Auto Coverage

These days folks are forced to make some tough decisions on what to cut from their budgets. Sometimes the cuts can become dangerous.

In tough times, more and more people are driving without auto insurance. More uninsured drivers on the road leaves room for accidents where you might have to foot the bill.

Experts say this is becoming a trend in the weakening economy. It's expected there will be one in six uninsured drivers by 2010. "It stands to reason they don't have enough money to go around. Really in the last 3-5 years people are struggling to pay their auto premiums," said Doug Hahn of Allstate Insurance.

In most states, the requirements are $25,000/$50,000 for bodily injury liability. This means $25,000 per person or $50,000 per occurence.
Drivers are also required to have uninsured/underinsured motorist bodily injury coverage. This is built into even the most basic policies. But, again only $25,000/$50,000 is covered.

In a small fenderbender with no injuries, that is not even your fault, you have to first come up with the money for the deductable on your own insurance. If you have a $1000 or $500 deductable the repair might not even come to that amount and you just pay for it yourself. Then there is the inconvenience of having the car in the shop for a few days and worrying how you are going to get to work. Your reward for being lawful.....or you just live with the dents. Not very fair, is it?

If you can afford it, Hahn recommends uping both coverages to protect yourself and others. Is it just me or do you think 'it stands to reason' that if you have an uninsured accident, your insurance should insure you so you don't have to come up with the deductable?

The poor Economy will cause good people to make tough choices. Illegal aliens avoid paperwork of any kind so don't count on them to even have passed a drivers test or be licensed and traveling in distressed areas is risky. God forbid you have a major accident...this could easily put your families finances in a tailspin.

Drive careful people!