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A Pennsylvania group supported by the insurance industry is predicting that the number of uninsured motorists will increase by 2010. In a study released by the Insurance Research Council the fall in the economy and the unemployment rate increasing has begun to effect then number of uninsured drivers on the road.
Many are opting to drop all of their coverage or scaling back to the minimum protection. This is dangerous. If you are a driver and scale your coverage down to the minimum and do not purchase uninsured/underinsured motorist coverage, you could be in trouble. With the minimum coverage you may not be protecting you and your family if you are in an automobile accident in Kentucky. If you are in an accident, are hurt, your car is damaged and the other driver was the cause, if that driver has no insurance or the minimum coverage you may not be adequately compensated for your injuries. Hospital and doctor bills along with lost wages and car repairs can add up quickly. With adequate coverage, including uninsured/underinsured motorist coverage, under that same scenario in most circumstances you would not have to pay money out of your own pocket.
The problem of decreasing and dropping coverage has a financial ripple effect. Insurance providers are forced to cover more damage caused by uninsured drivers causing rates to go up. Increase in rates may cause drivers to lessen their coverage putting them at risk for financial hardship if they are in an accident.
The Property Casuality Insurers Association of America has a list of ways to keep insurance costs down:
• No Pay/No Play – An approach that provides an incentive to purchase insurance is simple: either motorists obtain automobile liability insurance coverage or they lose the right to sue for non-economic damages.
• Mandatory Fines for Driving without Insurance – In many states the fines for driving without insurance can be lowered by a judge.
• More Efficient Enforcement – In lieu of uninsured motorist verification database systems that can too frequently misidentify insured drivers, PCI supports instead enforcement measures that target drivers who are most likely to drive uninsured.
In my book, “What You Don’t know About Buying Car Insurance Can Hurt You” I have outlined the different coverages and what they really mean. I have also included a chapter that outlines questions you need to ask your car insurance agent that may give you better coverage.
