Beware Of Uninsured Car Insurance Claims
Surveys indicate an increase in uninsured claims and warn against dropping car insurance as a way of saving money.
Not having car insurance could mean financial ruin if you are in an accident where property is damaged or individuals are injured, said an insurance company spokesman. He added that it is equally important to carry liability insurance that covers people in the other car and to have uninsured motorist coverage on your policy, which protects you if the other driver does not have car insurance.
The average cost for liability insurance in the U.S. is around $40 to $50 a month. Uninsured motorist coverage typically adds from seven to 10 percent to an insurance premium.
Drivers without at least liability insurance are breaking the law in all but two states.
The average payment on car insurance claims in accidents involving an uninsured driver is about $11,000, according to the most recent information.
The insurance industry also is watching the level of underinsured drivers - those carrying too little liability insurance - and has concerns this number also will spike as people seek to cut car insurance costs.
More uninsured drivers also mean more people will be forced to take legal action to recover damages. Many will never be fully compensated for car damage and injuries in serious accidents.