COLUMBIA -- Insurance experts now fear that the current economic downturn will lead to a sharp increase in the number of uninsured drivers out on the road. The Insurance Research Council's latest study reveals a strong relationship between national unemployment levels and the number of uninsured drivers.
In this FactFinder report, KRCG finds out who in the Heart of Missouri is dropping their auto policies and how residents with insurance can protect themselves.
The number of uninsured drivers on U.S. roadways decreased in recent years, from nearly 15 percent of drivers in 2003 to just less than 14 percent in 2007. But insurance officials now worry as more people look to scale back their budgets, more drivers next to you on the road will be uninsured.
But one Columbia AllState agent says that's not the case, at least not yet.
"We don't have a lot of people that are coming in saying I need to drop coverages or I need to reduce coverages," says AllState Agent Dean Arthaud. "We do have people coming in and saying I would like to save a little money."
State Farm officials point out one way to do that.
"What you can do is to talk about increasing your deductible," says State Farm Public Affiars representative Jim Camoriano. "In general, the higher the deductible, the lower your premium. So that could help."
But insurance officials stongly warn against eliminating too many coverages or dropping your policy all together.
"If you are in an accident, then what happens, it puts you in a tight spot because now you have to draw upon your own resources financially," says Camoriano. "It puts you in a condition that you were trying to avoid in the first place."
"Automobiles, medical bills, everything is very expensive these days," says Arthaud. "You don't want to have to be paying for a big bill for years and years. If you've got savings or assets, their exposed. Its that simple."
Insurance officials say it would be wise for everyone to now review their insurance policies. Your agent can help you find a way to save money, possibly through discounts, or point out a gap in your coverage that could put your family at risk.
Dean Arthaud told Mallory about one of those gaps that he frequently sees. Arthaud says insured Missouri drivers need to make sure they have uninsured and under-insured motorist coverage. Those are the proper policies to fully protect you and your assets.
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