July 10, 2009
/24-7PressRelease/ --
Recession Drives Road Risks Higher
Article provided by The Law Offices of Mark Kaire, P.A.
Visit us at
www.kairelaw.com
The recession is not only driving unemployment up, but the numbers of uninsured motorists up as well, putting everyone on the road at greater risk.
According to the Insurance Research Council, an insurance-industry-funded group, hundreds of thousands of drivers dropped their auto insurance coverage in the past year. The group says that for every percentage point rise in unemployment, the percentage of uninsured motorists rises by three-fourths of a percent.
By next year, the group estimates that 16 percent of all drivers will be without car insurance, as compared to 13.8 percent in 2007.
Insurance.com (an online car insurance resource company) says close to 40 percent of callers inquiring about car insurance were uninsured, with many letting their policies "lapse due to the financial crisis." The company said that in 2008, only 10 percent of callers had expired insurance policies.
How the Uninsured Put You at Risk
When an insured driver has an accident with an uninsured motorist, in many cases the insured driver is going to have to deal with the financial consequences of the accident on their own, no matter who was at fault. That's why experts urge drivers to check their auto insurance to make sure it includes uninsured motorist coverage.
With that relatively inexpensive coverage, you will get compensation, according to policy terms, for medical bills and personal injuries you and your passengers incur as a result of a collision with an uninsured or underinsured motorist.
By Florida law, you must carry a minimum of $10,000 personal injury protection (PIP) and $10,000 property damage liability (PDL) insurance for every car with a Florida license plate. Unfortunately, this bare bones minimum coverage does not provide compensation for injuries. Rather under Florida Law-PIP pays your own medical bills up to $10,000.00. PDL pays for the damage an at fault driver causes to another individual's automobile, motorcycle, bicycle, etc. There is no requirement under Florida Law that an operator of a motor vehicle carry insurance to "fix" the injured person-just the injured person's automobile. This is why it is so important to carry Uninsured Motorist Coverage. It provides protection in the event the at fault driver does not carry Bodily Injury(BI) coverage, or if the driver does not have enough insurance to adequately compensate an injured party.
Article provided by The Law Offices of Mark Kaire, P.A.
Visit us at
www.kairelaw.com---
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