LevonP
12-29-2008, 11:37 AM
CHARLESTON, W.Va. - Americans are desperately seeking ways to cut their spending in these tumultuous economic times, even if it means driving without car insurance.
The number of uninsured motorists nationwide has doubled in the past year, said Sam Belden, vice president of online agency Insurance.com.
The number of West Virginia drivers whose licenses are suspended each year because of lack of insurance has remained fairly consistent, and it's a nagging problem, said Steve Dale, deputy commissioner of the Division of Motor Vehicles.
The DMV annually suspends between 7,000 and 9,000 licenses of motorists caught driving with no insurance coverage. Each of them poses a risk on the road, Dale said.
"West Virginia is in the middle of the pack as far as the uninsured percentages go," Dale said. "There are states which have higher uninsured rates and states with lower, but DMV would like to do more. It doesn't really matter what the percentage is if you are the one that meets the driver that is uninsured."
Belden, at Insurance.com, said data shows that 20 percent, or one in five motorists, are not covered this year compared to 10 percent last year.
Insurance.com is the largest online auto insurance broker, which gets rates from 15 different companies for consumers.
"Money is a little tight with people, and they decide if they need to skip on something, they'll let their insurance lapse," Belden said.
"It's directly attributable to the economy," he added. "And it's exacerbated by premiums also rising over the past year. When people are squeezed the most, the insurance rates are also going up."
Belden said insurance premiums have increased by 6 or 7 percent this year.
The Insurance Research Council, a group funded by the insurance industry, is expected to release a study next month showing that several hundred thousand drivers dropped their insurance in 2008, partly because of the economy and jobless rate. About 40 percent of callers who followed up on online applications this year let their policies lapse, up from 10 percent a couple of years ago.
David Corum, vice president of the council, said the study shows that a single percentage point increase in unemployment is associated with a half-point increase in uninsured drivers.
The council's most recent data, from June 2006, reported that West Virginia had an uninsured motorist rate of 10 percent. The national average that year was around 15 percent.
States with the highest uninsured rates include Mississippi, 26 percent; Alabama, 25 percent; and California, 25 percent.
The number of uninsured motorists nationwide has doubled in the past year, said Sam Belden, vice president of online agency Insurance.com.
The number of West Virginia drivers whose licenses are suspended each year because of lack of insurance has remained fairly consistent, and it's a nagging problem, said Steve Dale, deputy commissioner of the Division of Motor Vehicles.
The DMV annually suspends between 7,000 and 9,000 licenses of motorists caught driving with no insurance coverage. Each of them poses a risk on the road, Dale said.
"West Virginia is in the middle of the pack as far as the uninsured percentages go," Dale said. "There are states which have higher uninsured rates and states with lower, but DMV would like to do more. It doesn't really matter what the percentage is if you are the one that meets the driver that is uninsured."
Belden, at Insurance.com, said data shows that 20 percent, or one in five motorists, are not covered this year compared to 10 percent last year.
Insurance.com is the largest online auto insurance broker, which gets rates from 15 different companies for consumers.
"Money is a little tight with people, and they decide if they need to skip on something, they'll let their insurance lapse," Belden said.
"It's directly attributable to the economy," he added. "And it's exacerbated by premiums also rising over the past year. When people are squeezed the most, the insurance rates are also going up."
Belden said insurance premiums have increased by 6 or 7 percent this year.
The Insurance Research Council, a group funded by the insurance industry, is expected to release a study next month showing that several hundred thousand drivers dropped their insurance in 2008, partly because of the economy and jobless rate. About 40 percent of callers who followed up on online applications this year let their policies lapse, up from 10 percent a couple of years ago.
David Corum, vice president of the council, said the study shows that a single percentage point increase in unemployment is associated with a half-point increase in uninsured drivers.
The council's most recent data, from June 2006, reported that West Virginia had an uninsured motorist rate of 10 percent. The national average that year was around 15 percent.
States with the highest uninsured rates include Mississippi, 26 percent; Alabama, 25 percent; and California, 25 percent.