More and more Americans are driving toward disaster. As people look for additional ways to cut costs, many are skimping on car insurance or dropping it altogether. In fact, a study by the Insurance Research Council estimates that one in six drivers will be uninsured in 2010.
Driving without auto insurance poses a number of serious risks. First, uninsured motorists may face tough state-specific legal consequences. Most U.S. states require drivers to carry liability insurance, and those that don’t have instituted financial responsibility laws. Drivers who do not carry insurance or cannot prove their ability to pay may be fined or imprisoned, have their licenses suspended, and/or have their vehicle registrations revoked.
Second, uninsured and underinsured motorists are putting their own financial well-being at risk. Consumer advocates and insurance companies alike recommend carrying at least $300,000 worth of liability insurance per accident because incurring such costs is possible and would bankrupt most Americans.
Auto insurance can fit your budget. To get low cost car insurance, keep a clean driving record and make sure you’re getting the best discounts possible. You might also try a pay-as-you-go policy if you drive less frequently than the typical driver. A small investment in auto insurance provides priceless peace of mind and could be worth hundreds of thousands of dollars down the road.
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