Road Hazard: uninsured driver Rates Climb

 

Friday, Mar 06,2009, 5:34:08 PM   Click:

Road risk: uninsured driver rates climb DAVID PITTAP Personal Finance Writer The Associated Press
DES MOINES, Iowa_Chances are becoming more than the next fender bender you are involved in could be with someone without car insurance. As the recession leaves millions of workers unemployed and the family budget pressures, a place many are cutting their insurance coverage.

The Insurance Research Council estimates that by next year nearly one in six motorists in May to driving without insurance. That $ 3 million more than the uninsured drivers, there are just five years.

"We can not explain why people drive without insurance, we do know that a certain percentage of people, and it does not change with economic conditions such as unemployment," said Vice President David Corum IRC.

For each increase of 1 percent in the unemployment rate nationally, the percentage of uninsured motorists increased three-quarters of a percentage point, "said Corum. This could lead to a total of 16.1 per cent by next year, its highest level. The rate was 13.8 per cent in 2007.

The group examined data collected from nine insurance companies, representing approximately 50 percent of U.S. private passenger insurance market automobile.

The Travelers Cos. Inc. reports it has recently seen a slight increase in uninsured claims and warns against falling insurance as a way to save money.

"Do not have automatic coverage could mean financial ruin if you are in an accident where the goods are damaged or are injured," said William Pearse, St. Paul, Minn. company Vice President of product strategy and design.

Pearse notes that it is equally important to the liability insurance that covers people in the car and to have uninsured motorist coverage of your policy, which protects you if the car is not insured.

The average cost for liability insurance in the United States is about $ 40 to $ 50 per month. Although costs vary, uninsured motorist coverage usually added seven to 10 per cent to an insurance premium.

Drivers without at least liability insurance are in violation of the law, but both states.

Wisconsin and New Hampshire just need to give motorists to prove they can pay a minimum level of damage, according to the Insurance Information Institute. May show including a bond or a certificate of self-insurance, which are often purchased through the state agency motor vehicle or certificate of deposit.

Bloomington, Illinois-based State Farm Insurance Cos. is already an increase in accidents involving uninsured drivers.

The average payment claims in accidents involving an uninsured driver is about $ 11,000, according to the latest information available IRC.

The insurance industry is also watching the level of underinsured drivers _ those too little liability insurance _ and concerns in this issue also spike that people seek to reduce insurance costs.

More uninsured drivers, but also more people will be forced to take legal action to recover damages. Many will never be fully compensated for the damage to the vehicle and injuries in serious accidents, said Jim Quilty, a lawyer with the firm of Crawford Quilty in Des Moines, Iowa.

"May you have a bankruptcy or insolvency of the accused you can not receive," he said.

Before considering driving without insurance, you should know that the penalties include fines of May, in many States that cost more than the annual premium for a minimum of insurance. Some States also revoke or suspend the registration of car or license of uninsured drivers, and in some cases, take the license plates or vehicles setting. A few States May prison offenders.

In five states _ Alabama, Florida, Mississippi, New Mexico, Oklahoma and _ nearly a quarter of the drivers had no insurance in 2007, the most recent statistics available, the ICC said.

States with the lowest uninsured driver estimates were Maine, New York, North Dakota, and Vermont, all of which have less than 6 percent of drivers without insurance. Massachusetts was the lowest, with only 1 percent.

Mark Martin, who runs a body shop in Ankeny, Iowa, on the north-west of Des Moines, said that some of his clients were victims of uninsured drivers.

"We see it. I can not say that we have seen a higher percentage of the time, but it is a problem," he said.

He experienced first hand the frustration when an uninsured driver rear ended a Lincoln Mark VIII, a few years ago.

The damage was about $ 3,500 and $ 1,000 after its franchise has been taken about $ 2,500 remains to be collected. Martin said he was very disappointed when his insurance company decided not to pick up the pilot of the money. Martin ended up not filing the application and, later, the vehicle itself set.

"I did not want to have a nervous breakdown over it so I decided to do nothing and, later, I repainted the entire car, so I set at that time," he said .

Although May you have a driving record, more than 6 million accidents were reported to the National Police in 2007 and the National Highway Transportation Safety Administration estimates 10 million or more accidents are never reported to police each year.

© Copyright 2009 The Associated Press. All rights reserved. This material May not be published, broadcast, rewritten or redistributed. DES MOINES, Iowa_Chances are becoming more than the next fender bender you are involved in could be with someone without car insurance.