U.S. Drivers Dropping Auto Insurance Coverage at Alarming Rate
Stephen : Auto insurance is very expensive now, especially when I have lost my job. What would happen if one would not buy auto insurance.
Response : This year the Insurance Research Council reported that one in six drivers in the U.S. may be driving uninsured by 2010 due to a continuing economic downturn. . There are 3 compelling reasons to avoid the temptation of skipping your auto insurance coverage namely :
1. Driving without car insurance is a crime
Yes, it is a crime in all states to drive without car insurance coverage. No driver can be certain that he will avoid an accident. You might think you can get away without it, but you can’t be sure. On top of that, your odds of being in an accident with an uninsured driver are substantial.
2. Your auto insurance rates will increase when you reinstate your policy
Remember, most states have laws requiring you to show proof of insurance. Many states make it a practice to stop drivers unexpectedly just to inspect if the driver has proof of car insurance. And if you cannot furnish proof of auto insurance coverage, you will be required to mail in proof of insurance showing you were covered on the day you were inspected.
If you think car insurance coverage is expensive now, just try getting it after being caught without insurance. You’ll be in a new high risk category, and you’ll be expected to pay a lot even though you’re not a bad driver.
For those who choose to drive without insurance, they could lose any assets they own if they hit someone and get taken to court. Letting your coverage lapse can result in having to pay an initial 25% to 50% surcharge for a new policy. Because they consider such drivers irresponsible, Insurance companies charge more upon policy reinstatement.
3. You very well may incur stiff penalties.
Penalties for failing to maintain car insurance can range from a fine, to a suspended license, to jail time. If you get caught, your car or license plates could be impounded until you can pay the fine. Then, you have to pay another fee to reinstate your registration
It is better to go online and shop around for low auto insurance quote. Compare auto insurance quote online and you will find very low and car insurance quotes. Review car insurance quote and check out the quotes above. Grab your low auto insurance quote now.
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Tagged with: Alarming Rate • Assets • Auto Insurance Coverage • Auto Insurance Rates • Car Insurance Coverage • Economic Downturn • High Risk • Insurance Companies • Insurance Rate • Insurance Research Council • Jail Time • License Plates • Odds • Proof Of Insurance • Reinstatement • Risk Category • Stiff Penalties • Surcharge • Temptation • Uninsured Driver
Filed under: Review Car Insurance Coverage
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