More US Drivers Dropping Auto Insurance Coverage

In a disturbing turn, more U.S. drivers are choosing to drop their auto insurance coverage in order to make it through the recession financially intact. It seems that many look at coverage as an expense they can cut in order to save cash for more important things.

Figures released by the Insurance Research Council reported that about one in six drivers in the United States might be driving uninsured by 2010 because of the worsening state of the economy.

This amounts to an extreme risk that can have some serious consequences.

For starters, it is a crime in all fifty states to drive an automobile without some form of auto insurance coverage. No driver can be absolutely sure that he will not experience an accident. Yes, some are willing to take that chance, choosing to go against the odds. On the flip side, you might consider the fact you have a good chance of being in an accident with an uninsured driver.

Add to this the fact that most states strictly enforce their automotive laws and it is possible that you will be stopped simply to check for proof of insurance. What happens if you encounter one of these inspections? In most cases, if you don’t have proof on insurance on you then, you’ll be required to mail it in within a certain amount of time to prove that you were covered.

When you are caught without insurance, you are hurting your chances of getting insurance coverage at rates that are more reasonable. Lack of insurance coverage can translate into paying higher premiums when you do decide to buy insurance.

You’ll be in a new high-risk category—even if you’re not a bad driver.

Other consequences may entail the loss of assets if you’re involved in an accident where someone is injured and you’re subsequently sued. Penalties for failing to maintain car insurance can range from a fine, to a suspended license, to time in jail.

If you are caught, your car or license plates could be impounded until you can pay the fine. More fees will result.