Number Of Insured Drops With The Economy
As the economy continues its downfall, and unemployment rates reach new heights, more and more drivers are letting their car insurance lapse, putting both themselves and others at risk.
According to the Insurance Research Council, several hundreds of thousands of drivers have dropped their auto insurance in the past year. Some experts accredit rising insurance premiums as part of the problem, while others blame the poor economy and industry wide layoffs. Regardless of the reason, the increasing trend of uninsured motorists is bad news for all parties involved.
If an uninsured motorist causes an accident, he or she will not have insurance coverage for any injuries suffered and medical bills incurred by a non-negligent party. Likewise, the failure of an uninsured motorist to procure insurance will leave them vulnerable to claims by non-negligent injured parties.
One way to offset the risk of being injured by an uninsured motorist is to purchase what’s known as uninsured motorist coverage, an insurance premium that can be bought to protect oneself. In this case, your own insurance policy would kick in and cover damages and medical bills up to a preset amount. Although this premium will come at an additional cost to the insured and raises the total cost of the insurance policy, it is essential that you purchase the highest levels of both liability and uninsured motorist coverage that you can afford. In our 34 years of practice, we have seen numerous examples of clients who have received catastrophic injuries, clients who have not been fully and fairly compensated because there were inadequate limits of insurance coverage.
Maine law requires all motor vehicles to carry limits of both liability and uninsured motorist coverage in the minimum amounts of $50,000 per person/$100,000 per accident. Often times those minimum limits are woefully inadequate to fully and fairly compensate injury victims. In addition to having ample insurance coverage to compensate injury victims, your insurance coverage will also help protect your personal assets if a personal injury claim is made against you.
It is also being reported that those who are insured are stripping their insurance policies to the bare minimum to save money in the down economy, often omitting important parts of their insurance coverage such as uninsured motorist coverage. And for those that let time lapse between renewing their auto insurance, they are often subject to a 25 to 50 percent surcharge for a new policy, as insurance companies typically charge more for people they consider careless and thus more apt to cause an accident.
At the Law Offices of Joe Bornstein we see firsthand the causes and effects of auto accidents, and too often our clients who are in serious wrecks do not have the adequate insurance coverage to be properly compensated for their injuries or disabilities. Don’t leave your insurance coverage to chance - protect yourself today by purchasing uninsured motorist coverage in the highest limits you can afford, and be prepared in the unforeseen event that an accident does occur.
For more information on uninsured motorist coverage contact your insurance agent, or call the Law Offices of Joe Bornstein for free legal advice.
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