In 2009, the Wisconsin unemployment rate hit a 27 year high at 9.4 percent. With rising unemployment, a ripple effect began that touched on almost all parts of life, including personal protection. According to a study conducted by the Insurance Research Council, as more and more Wisconsin residents lost their jobs in 2009, several hundred thousand drivers dropped their automobile insurance.
Data from the study indicates that a single percentage point increase in the unemployment rate is associated with a half-point increase in the percentage of uninsured drivers.
In addition to loosing their income, many Wisconsin drivers began and are experiencing auto-insurance rates that are rising after a couple of years of flat or declining premiums.
Of those that are choosing to keep their auto insurance, many have and continue to react to the rate increases by stripping down their auto-insurance policies, taking the absolute minimum level of liability coverage legally required to drive in the State of Wisconsin.
The time has come to become concerned if you are a driver or frequent passenger of a moving vehicle. A good proportion of people on the road are either uninsured or under-insured; its now more important then ever that you protect. Your odds of being in an accident with an uninsured driver are substantially high.
If you’re hit by an uninsured motorist, you may have to file a lawsuit and even go to trial in order to be able to recover costs of the accident and associated medical bills. Unfortunately, even if you sue, many uninsured motorists have few assets to collect. The best way to protect yourself is by carrying uninsured-motorist coverage, although this may boost your premium. Uninsured and under-insured motorist coverage adds roughly 7% to 9% to an average auto premium. In my opinion its worth it.
Motorists driving without insurance also face risks. In a wreck, they could lose whatever assets they own in a court judgment. Motorists who allow their policies to lapse for any reason also often must pay an initial 25% to 50% surcharge for a new policy. Because unlicensed and uninsured drivers are disproportionately involved in fatal accidents, insurance companies classify them irresponsible and charge them more.
Wisconsin legislation was recently adopted requiring all Wisconsin drivers to be insured by July 2010. This law will hopefully reduce the number of uninsured motorist, however, under-insured motorist will still be prevalent.
It is important to remember that even in tough economic times, it makes sense to carry uninsured motorist coverage to adequately cover yourself in the event that you are in an accident with a driver that is uninsured. You have earned your assets and have the option to protect them.
