Car Accident Risks Rise as Uninsured Motorist Rolls Increase
Posted on Dec 19, 2008
More drivers are letting their car insurance lapse due to the down turn in the economy, putting themselves and others at risk. Several hundred thousand drivers dropped their insurance in the past year as the jobless rate climbed, estimates a study to be released next month by the Insurance Research Council, an industry-funded group. There is evidence of more uninsured motorists and many as 40% of callers following up on online applications had let their previous policies lapse, up from less than 10% a couple years ago.
Agents say a growing number of customers are stripping down their auto-insurance policies, taking the absolute minimum level of liability coverage legally required to drive in their state. There is an inordinate proportion of people on the road who are either completely uninsured or underinsured (state minimum which is $25,000 in Georgia) and so you have to protect yourself by purchasing higher limits of insurance, both liability and uninsured motorists (UM).