A recent study has shown that because of the down economy, many people are letting their auto insurance lapse because they can’t afford the premiums.  This means that you are more likely to get into an accident with someone who cannot cover the damage of your vehicle, or worse yet, your medical expenses. 

According to the Insurance Research Council, California ranks 7th on the list of most uninsured drivers.  As much as 18% of people are not paying, and that percentage goes up in large urban areas.  That means that 1 in 5 drivers are on the road, uninsured, and that number is expected to rise.

What does that mean for you, the consumer?  It means that if you get into an accident, then there is a 1 in 5 chance that the other person involved will not have coverage to pay for the damage to your car or your medical bills.

Now more than ever, you need to make sure that you are protected in the event that you are in an accident with an uninsured motorist.  Review your policy to see what your coverage is.  If you don’t already have uninsured motorist or underinsured motorist UM/UIM coverage, now is a good time to look into it.

If you have any questions about insurance you can always contact us at www.aisinsurance.com or call 888-772-4247

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.

In a rough economy, people are often looking to cut costs and reduce spending in as many ways possible.  Not knowing what the future has in store can leave many people nervous about spending money.  This can force them to make choices they wouldn’t have to make under ordinary circumstances.  In some cases, people may be tempted to reduce their spending by lowering or even dropping their car insurance.  While it may seem like a good idea, here are some reasons why you should never completely discontinue your car insurance.

• It’s Illegal - All states have laws that require drivers to carry minimal insurance while operating vehicles. This is to ensure that medical bills and repairs to damaged vehicles can be covered by the at fault party. States also have different penalties to punish those caught driving without insurance.

• Your license may be suspended - If you are caught driving without insurance one penalty may include losing your license. While this might not seem like a big deal financially, you will have to consider how you will get to work. Who will drive you? On top of that, if you lose your license and decide to drive, there are even more serious penalties that could lead to added costs.

• You are responsible - If you do not have auto insurance and you get into an accident that causes damage or bodily injury, you will likely be responsible for the entire amount. If you do not have sufficient funds to pay, your assets including your house could be in jeopardy. The purpose of insurance is to aid you in paying for damages if an event such as this occurs. Damages are apt to be more expensive than paying the premium of a policy as well as the deductible.

If you are looking to save money you should contact your provider to see if there are ways in which you can reduce your costs.  Ask if you qualify for any discounts, or if you think you are a safe driver, you may want to raise your deductible to reduce your premium.  

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.