Rising rates of unemployment in May Result uninsured drivers

 

Friday, Mar 06,2009, 6:28:15 PM   Click:

The uninsured drivers should obtain / Underinsured motorist coverage to protect themselves financially

NEW YORK, February 9, 2009 - To protect yourself financially against damage or injury of an uninsured (UI) or-(UIM), you must purchase adequate amounts of UI / UIM coverage, according to Insurance Information Institute (III).

A new study by the Insurance Research Council (IRC) said that there is a strong correlation between the percentage of uninsured motorists and the unemployment rate. Based on projections of current unemployment rate, the IRC provides that the percentage of uninsured motorists is expected to increase from 13.8 percent in 2007 (latest data available) to 16.1 percent in 2010.

"Most people do not think of the uninsured or underinsured motorist coverage of their automobile insurance policy until they are victims of an accident hit and run, or are involved in an accident with a driver who either has no auto insurance or has very little assurance, "said Jeanne M. Salvatore, Senior Vice President and consumer spokesperson for the III

Uninsured / underinsured motorist coverage provides a very important financial safety net for drivers and their passengers. It provides protection even if you are hit by a car as a pedestrian. UI / UIM coverage is one of six basic components of a type of automobile insurance.

"Consumers should consider purchasing the same amount of uninsured / underinsured motorist coverage they buy for their responsibility to others," said Salvatore. "This will contribute financially to all drivers on a case where they are unable to perceive they are in a collision with a fault to the driver who has little or no insurance.

Drivers to protect themselves properly with UI / UIM insurance may submit directly to the loss of their insurance company. May Some insurers even offer an endorsement to a policy of umbrella or excess liability policy that allows the increase in limits to come into play, if necessary.

According to the latest data from the National Association of Insurance Commissioners, the average coverage of the uninsured motorist claim was $ 1481 for property damage and $ 19,650 for bodily injury in 2005. The National Highway Traffic Safety Administration reported in 2008 that one in five of all pedestrian deaths were the result of a hit and run accident.

Although uninsured / underinsured coverage is available at national level, it is only required by law in 21 states and the District of Columbia. They are: Connecticut, Illinois, Kansas, Maine, Maryland, Massachusetts, Minnesota, Missouri, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Oregon, Rhode Island, South Carolina, South Dakota, Vermont , Virginia, West Virginia and Wisconsin.

The study of the IRC significant variations between states in assessing the number of uninsured drivers. The highest percentages in 2007 were New Mexico (29 percent), Mississippi (28 percent) and Alabama (24 percent). States with the lowest percentage of uninsured drivers in 2007 were Massachusetts (1 percent), Maine (4 percent) and New York and North Dakota (5 percent).

Penalties for driving without insurance include fines, which can be as high as $ 5,000 for a subsequent offense, a license or registration suspension or revocation. Some states impose prison, confiscate license plates and put into vehicles.

For more information about this topic, go to Facts and Statistics: The uninsured motorists.

For a related audio file, go to Drivers must obtain Uninsured / Underinsured motorist coverage to protect themselves financially.

For more information on insurance, go to the III Web site.

The I.I.I. is a non-profit organization supported by the communications sector of insurance.

Insurance Information Institute
110 William Street
New York, NY 10038
(212) 346-5500 www.iii.org