Auto Insurance Being Dropped at High Rate

According to a PRWeb Newsrelease found on Entrepreneur.com, the recession is causing many Americans to drop their auto insurance which can be extremely risky. The Insurance Research Council found that one in six drivers may be uninsured by 2010 as the economy continues to struggle.

In addition to the obvious risk of possibly getting into a car accident and having huge bills to pay, auto insurance should never be dropped for other reasons. It is against the law to drive a car without auto insurance coverage. It’s a crime in all 50 states. Your auto insurance rates may increase when you do decide to reinstate your policy. You may incur harsh penalties that will cost you a lot of time and money. Your odds of getting into an accident with an uninsured driver are substantial so if neither of you are covered it can be catastrophic.

Also, most states require that you carry proof of insurance at all times while you are driving. You can even get your license suspended or receive jail time. If you get caught driving uninsured, it goes on your record and your auto insurance rates will be affected as you will be placed in a high risk category, even though you may be a safe driver. Many auto insurance companies charge a reinstatement surcharge up to 50% since they consider these drivers irresponsible. Bottom line, do not drop your auto insurance policy to save money. It will end up costing you much more in the long run. If you are desperate to save money, shopping around for a more competitive auto insurance quote is a much better route.

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