Slow Economy Has More Drivers On The Road Without Car Insurance
As the economy took a turn for the worse this past year, many drivers dropped their car insurance. According to an article in the Wall Street Journal, 15% of drivers were uninsured in 2006. The Insurance Research Council, who will be releasing a study about this trend next month, estimates this rate has only gone up due to increased unemployment in the United States. Auto insurance rates are also increasing, adding fuel to the fire. Premiums have risen 3.8% in a year.
Driving without insurance is risky to all parties involved in the accident. If you are hit by an uninsured motorist, suing is the only way to recover costs. This process is not only complicated, but doesn’t guarantee results, as many uninsured drivers have few assets. One way to avoid litigation is to purchase uninsured/underinsured motorist coverage from your insurance provider, which will cover costs up to a certain amount if you have been in an accident caused by an uninsured motorist. However, this coverage increases premiums by an average of 7% - 9%.
Fortunately, Utah has strict sanctions on uninsured drivers. All drivers must be insured and carry proof of insurance in their cars. If someone is caught without driving insurance, he or she could be fined $400 - $1,000 and could lose his or her license. In 2008, new Utah laws were passed that allows officers to impound vehicles found to be without insurance. Despite these tough laws, some Utah motorists continue to drive without insurance. You may want to work with your insurance provider and decide if you would benefit from uninsured motorist coverage.
If you have been in an accident caused by an uninsured or underinsured driver, please contact Kenneth Christensen at Christensen Law Firm for a free legal consultation. Seeking legal counsel can help ensure you receive the proper compensation you deserve.