Jobless Rate Influences Number of Uninsured Motorists

01/20/2010

With little relief in sight for the nation's unemployment situation, a leading insurance industry group is warning that the problem of uninsured motorists will continue to be a problem in the coming year.

In a recent report, the Insurance Information Institute that if the nationwide unemployment rate stands at 10.1 percent in 2010, it will result in about 18 percent of motorists failing to carry auto insurance. For next year, the group envisions a 9 percent unemployment rate that would result in 17.2 percent of drivers failing to secure coverage.

Auto insurance is now mandatory in 49 states, with the exception of New Hampshire. However, the recession has produced an upswing in the number of people who do not have coverage, largely because of their personal financial situations. In some states, that number is thought to be as high as one-quarter of all drivers on the road.

This is particularly troubling for other drivers, since if they are involved in an accident with an uninsured driver, they may be left on the hook for expensive repairs and even medical costs.

With that in mind, insurance experts often advise people to be sure their auto insurance policies provide sufficient coverage against uninsured motorists.

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