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TUESDAY, NOVEMBER 24, 2009
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More Strapped Drivers Kick Insurance to Curb

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(Newser) – As the economy sours, a stunning number of drivers are cutting back or dropping their insurance, MSNBC reports—and that has regulators and safety activists worried. “We may be looking at record numbers of uninsured motorists across the nation,” said the president of the Northwest Insurance Council. An industry research group predicts that by next year, 1 in 6 US drivers won’t have insurance.

“It’s been a shock,” said the owner of an insurance agency. “I thought we were somewhat in a recession-proof business,” since auto insurance is required by law. The share of uninsured drivers on the road hit a modern low 2 years ago at 13.8%. But that rate spiked to 14.6% last year, and is forecast to hit 16.1% this year.

A multi-vehicle pileup is seen in this file photo.
A multi-vehicle pileup is seen in this file photo. "When you see a multi-car collision ... at least one of them is likely to be uninsured," said the president of an insurance trade association.
New Hampshire and Wisconsin are the only states where auto insurance isn't required by law.
New Hampshire and Wisconsin are the only states where auto insurance isn't required by law.   (Insurance Institute for Highway Safety)
Each 1% increase in US unemployment translates to a 0.75% jump in uninsured drivers, a report finds.
Each 1% increase in US unemployment translates to a 0.75% jump in uninsured drivers, a report finds.   (AP Photo)
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TerrifiedCitizen
Apr 9, 09 3:00 PM CDT
Big Insurance through their self-appointed council are simply using the press to lay the groundwork for huge price hikes. If the economy continues downhill, this will result in a larger number of uninsured motorists... but you can bet Big Insurance won't allow themselves to suffer like everyone else. Reply
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