Posted on 04/09/2009 11:30:58 AM PDT by Steelfish
Economy leaves millions of drivers uninsured
Insurance industry study warns that 1 in 6 won’t be covered by end of year
"When you see a multi-car collision on the freeway ... if there’s more than three or four cars there, at least one of them is likely to be uninsured," says Karl Newman, president of the Northwest Insurance Council.
Insurance regulators and safety activists are alarmed at what they describe as a stunning rise in the number of drivers who are cutting back or even dropping their auto insurance to save money during the recession.
“It’s been a shock,” said Chris Pringle, owner of All American Insurance Agency in Little Rock, Ark., who said up to 20 percent of his clients had dropped their policies or missed payments in recent months. “I thought we were somewhat in a recession-proof business, because (auto insurance is) required for everyone to have.”
Karl Newman, president of the Northwest Insurance Council, a trade association based in Seattle, warned that “we may be looking at record numbers of uninsured motorists across the nation.”
(Excerpt) Read more at msnbc.msn.com ...
Another non-existent problem seeking a Nanny-fix. I can hardly wait for the insurance executives to be perp-walked and replaced with bureaucrats.
Well, if it is a choice between pay your mortgage or pay your auto insurance, most would choose the former.
We need mandatory car insurance! Oh wait...
Of course, being a generally law-abiding person, not to mention one who wouldn’t want the $1,000+ fine, or to be responsible for a huge sum of money if I caused a major accident, when I couldn’t pay my car insurance my car stayed parked. It wasn’t much fun not having a working car, but I didn’t feel like taking the risk.
Well, you can save on insurance by having a car that is not still being paid for (i.e., if you have to, get a clunker... LOL...).
Then, you don’t have to get full coverage, but only liability and uninsured motorist. You can save quite a bit of money that way...
That’s okay, we are already required to have uninsured motorists coverage in this nation that mandates insurance.
Of course, she thought that her business was recession-proof, most people do not want to break laws.
Forgive me, but there was a space of time when we couldn’t afford insurance and I was mad at them too, I just made some really good looking insurance cards so when I had to go through a roadblock.
Bingo. There isn’t much difference between the uninsured rates for auto and health in states that mandate auto insurance. It won’t work any better with health insurance.
Here is a letter I sent to my State Senator and Rep last week.
This morning, while listening to US Rep. Candice Miller on WJR, she was discussing the “cash for clunkers” proposal going through the US Congress. While I think the idea has some merit, let me explain why I will not be able to participate.
I am the sole breadwinner for my family of six and I make a healthy income. However, I drive older used cars and always have. We own three cars. Mine is a 2001 Mercury, My wife has a 1999 Chevrolet van and my daughter has a 1999 Mercury Sable. (note the pattern of American cars?)
Currently, Michigan has a very onerous policy of charging extreme rates for insurance. When my daughter bought her well used car, our rates immediately doubled to over $2400 per year. That is for PLPD on each car. No collision or comprehensive coverage. Through some good shopping and assistance by our insurance agent, we were able to find another insurance company based in northwestern Michigan that lowered the rate to about $1400 per year.
For the record, in a collective 63 years of driving, members of my family have received one moving violation and zero accidents.
I will not buy new cars because I can either afford a car payment or an insurance payment. The main cost of this coverage is the hundreds of dollars we are forced to pay for unlimited catastrophic care and uninsured motorist coverage.
Here is a solution I would like for you to spearhead. If it were me, I would call it something like the “I can’t afford to care about your personal problems automotive insurance reform bill.”
“I don’t care that you cannot afford insurance. Hitch a ride, take a bus, get a bike or walk.” If someone gets caught driving a vehicle without insurance, or gets into an accident, they go to jail. Pure and simple. The first 10-15 people who get 3-5 year sentences will completely fix the problem of uninsured cars
“I’m sorry that you got hurt in a wreck. The State of Michigan will help you up to $250.000.” Beyond that, the responsibility of the State is complete. Stuff happens and it’s not always good, but we cannot afford to expend unlimited treasure.
This would immediately save every vehicle owner in the state about $400.00 per year. The threat of imprisonment would rid the roads of many bad drivers and pollution belching cars barely fit for a scrapyard.
Is this cold? Yes..
Is it heartless? Yes.
Is it the right thing to do for Michigan citizens who are working within the system? Absolutely.
Will it immediately help our economy and our automotive companies? Without question.
We simply cannot afford to care about lawbreakers in this State anymore.
I urge you to sponsor such legislation.
With regards,
Cyclotic
My Rep hasn’t responded yet, but the Senator (highly conservative) wrote a very personalized letter of agreement.
Cant pay the premium?
I guess you better get acquainted with Mr. B-U-S.
I made my daughter carry uninsured coverage on her policy, plus I convinced her to bump up the minimum coverage from the state allowed. Indiana isn’t a no-fault state, they have used the one in seven number around here for years. People love suing over every fender bender around here looking for the jackpot.
Fixed it.
You know, like AIG, Insurance companies and people like Warren Buffet that because of his support for Death Taxes people have to buy policies from him. Like how Mitt FORCED with state power people to hand over money to private companies, for their wealth and profit.
Same thing only different. One group of people abusing the power of government to make people pay them, so that they can make donations to their helpful political friends.
Millions have no money for insurance because they’re buying assault rifles to smuggle to Mexico.
Question. Let’s say that universal health coverage is passed, God forbid.
Do you think your car or home premium will go down?
I think not. Heads the insurance companies win, tails the government wins. Nice, eh?
of course they will cut gang bangers, murderers and rapists
loose to make room for uninsured drivers.
Rhetorical question.
Personally...I think all laws requiring purchasing auto insurance should be done away with. It is non-free market, and, actually makes insurance more expensive
Responsible people will still insure their autos and theirselves....and will find it cheaper since fewer people will be purchasing insurance
If you don’t insure your self, for anything that might happen to you, you shouldn’t be out in pubic. Stay in bed.
Why as a conservative is it antibody’s responsibility to cover you?
Why should I be taxed one penny, to have the state be your boy in dealing with uninsured motorists. Frankly, I’d like my cop/tax dollars going to rounding up rapists, murders and such.
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