Sour Economy Places More Uninsured Drivers On The Road

The Insurance Research Council has reported some disturbing news for motorists. The number of drivers without auto insurance is up dramatically. A perfect storm combination of an almost 4 percent increase in auto insurance rates last year, a slumping economy and rising unemployment have contributed to the sharp increase in uninsured drivers.

Rising Unemployment Equals More Uninsured Drivers

Research shows that a 1 percent increase in the unemployment usually translates to a half percentage point increase in the number of uninsured drivers. Struggling with finances, many drivers either do not renew their auto insurance coverage, or let their current auto insurance policy lapse.

The chance of being in an accident with an uninsured driver puts you at risk whether you have auto insurance or not. If you cannot successfully sue the uninsured driver for expenses related to your auto insurance claim, you will need to use your own auto insurance coverage as a protection.

Protect Yourself From Uninsured Drivers

Uninsured motorist auto insurance coverage is mandatory in almost every single state. The minimum coverage amount for uninsured motorist auto insurance coverage is usually very low. Since the risk of being involved in an accident with an uninsured motorist is very high, you may want to consider bumping up your uninsured motorist coverage to the highest level you can comfortably afford.