Recession Fueling Increase in Uninsured Drivers, Auto Loan Delinquencies

12/07/2009

The recession has seen an increase in the number of people trying to cut corners by driving without auto insurance, causing trouble for insurers as well as other drivers in the process.

In fact, Oklahoma officials made national news recently with a proposal to deploy cameras at various points in the state that would photograph random cars and then issue tickets to drivers found to be operating without insurance. The plan has generated a measure of controversy because of the "Big Brother" comparisons it invites.

Only one state, New Hampshire, currently allows drivers to go without insurance, with Wisconsin having recently implemented its own mandate.

In one warning sign that the number of uninsured motorists may continue to rise due to economic pressures, credit bureau TransUnion reported last week that the 60-day delinquency rate for auto loans rose to 0.81 percent in the third quarter of 2009, marking a 1.25 percent year-over-year increase.

People who consider going without auto insurance are frequently warned by public safety officials that the costs of noncompliance tend to far outweigh the cost of insurance. With that in mind, people can still save money by seeking higher deductibles and checking for all applicable discounts offered by their insurer.

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