By Gerald Reed
As California sinks further into a recession, California will likely see an increase in uninsured motorist. The current rate of 18%, will more than likely increase! The 18 percent rate for the Golden State is as of 2007, the most recent data available. (in my humble opinion…it is much higher already).
In a recently released study, the Insurance Research Council estimates that the economic downturn may push the percentage of uninsured motorists to an all time high of one in six drivers in 2010.
“An increase in the number of uninsured motorists is an unfortunate consequence of the economic downturn and illustrates how virtually everyone is affected by recent economic developments,” said Elizabeth Sprinkel, the research group’s senior vice president. “Responsible drivers who purchase insurance end up paying for injuries caused by uninsured drivers.”
The Council estimated that the percentage of uninsured motorists decreased nationally to 13.8 percent in 2007 from 14.9 percent in 2003. California ranked No. 7 at 18 percent in 2007. New Mexico was the worst at 29 percent, and Massachusetts, the best at 1 percent. But as unemployment rises, so does the percentage of people who drive without car insurance, the report found.
An increase in the unemployment rate of one percentage point is associated with an increase in the uninsured motorist rate of more than three-quarters of a percentage point, according to the Insurance Research Council . With more uninsured drivers on the roadway, the likelihood is that if you’re in an accident, it will be with someone who is not insured. Having the proper coverage is more important than ever. Proper coverage will help reduce the financial impact on you if you are injured in an auto accident caused by an uninsured motorist.
Now is NOT the time to skimp on important coverages. Please contact me immediately if you have any questions about your protection.
Posted By Ron Siegel
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Ron Siegel is a Radio Show host on the Real Estate Radio Network and counsels clients in all matters Real Estate Related – Mortgage Banking, Real Estate Purchases and Sales, Short Sales, Foreclosures, Credit Repair. Reach on Ron Siegel at Ron@MBEhoa.com – 800.306.1990 – www.MBEhoa.com.
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