Data from the study indicates that a single percentage point increase in the unemployment rate is associated with a half-point increase in the percentage of uninsured drivers.
In addition to rising unemployment, auto-insurance rates are rising again after a couple of years of flat or declining premiums. 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 the state.
Its time to be concerned. A good proportion of people on the road are either uninsured or under-insured; you have to protect yourself. Your odds of being in an accident with an uninsured driver are substantial.
If you’re hit by an uninsured motorist, you may have to sue to recover costs, and many uninsured motorists have few assets. You can protect yourself by carrying uninsured-motorist coverage but this may boost your premium. Uninsured and under-insured motorist coverage adds roughly 7% to 9% to an average auto premium.
Motorists driving without insurance also face risks. In a wreck, they could lose whatever assets they own in a court judgment. Motorists who allow their policies to lapse for any reason also often must pay an initial 25% to 50% surcharge for a new policy. Insurance companies charge them more because they consider them irresponsible since unlicensed and uninsured drivers are disproportionately involved in fatal accidents.
Even in tough economic times, it makes sense to carry uninsured motorist coverage to adequately cover yourself in the event that you are in an accident with a driver that is uninsured.
For more information on Car Accidents
Main Office Location
Rozek Law Offices, SC
3970 N Oakland Ave Ste 604
Milwaukee, Wisconsin 53211
Additional Client Meeting Location
Rozek Law Offices - Madison
2810 Crossroads Dr Ste 4046
Madison, Wisconsin 53718