More Uninsured Drivers Expected in 2010
A new study predicts that there will be more uninsured drivers on the road in 2010. The study, conducted by the Insurance Research Council (IRC), shows that more people are taking to the roads without coverage simply because they feel they have no other choice.
Researchers say unemployment is the reason. Their study showed that there is a direct correlation between unemployment rate increases and an increase in the number of uninsured motorists, which means as unemployment increases in the coming months more people will be driving without coverage.
Financial experts say that this trend is common among those who have lost their jobs because they have to cut their expenses where they can, but still need to drive around to manage their lives (buy food and necessities). They also need to be able to get to job interviews. So instead of taking food off of the table or gas out of the tank, they cut back on auto insurance and take their chances on the road.
The major problem with cutting back on insurance is that it increases financial risk for individuals and families in the long-run. If you get into a car accident and are uninsured, you can be fined, and also may have to pay thousands in out-of-pocket expenses for damages and injuries. This is a definite threat to a family’s financial well-being.
If you find yourself in this predicament, instead of dropping insurance altogether, you can look for ways to reduce premium costs, including increasing your deductible. This way, you’re still covered in an accident, and may only have to come up with a couple of hundred extra dollars out of pocket, instead of several thousand.