Ranks of Uninsured California Motorists on the Rise

As California’s economy tumbles, cutting auto insurance may be a temptation for many cost-conscious drivers.

But options are available that will help them save money and while maintaining insurance coverage, according to the Insurance Information Network of California.

“The potential for more uninsured motorists on the roads is troubling and it puts all drivers at greater financial risk,” said IINC Executive Director Candysse Miller. “Unfortunately, as wallets get thinner, insurance typically ends up on the chopping block.”

To protect drivers, IINC advises motorists to:

• Ask their current insurer about available discounts;
• Consider increasing their deductible. Increasing the deductible from $200 to $500 could afford a savings of 15 percent to 30 percent;
• Consider dropping comprehensive and collision coverage on older cars; and
• Shop around to see what other insurers can offer.

Rising unemployment means some impacted drivers may qualify for insurance from California’s Low Cost Auto Insurance program. Providing limited coverage at a reduced premium, this program could aid those earning less than 250 percent of the poverty level yet still provide some protection of investments. Premiums range from $208 to $378 annually and vary from county-to-county.

For every one percent increase in unemployment, there is nearly a one percent increase in uninsured motorists, according to the Insurance Research Council.

As a result, the likelihood of being involved in an accident with an uninsured driver is also on the rise. If you are hit by an uninsured driver, be certain to get the license plate of the vehicle; the name, address and license number of the driver; and notify your insurer immediately.