Vermont & New Hampshire Injury Blog

Letting your car insurance lapse in these tough economic times?

Driving without insurance is illegal in 48 states and the District of Columbia. The only states that don't require insurance are New Hampshire and Wisconsin. Therefore, even in good economic times, many people in New Hampshire drive without car insurance.  However, it appears that even more drivers are allowing their car insurance to lapse because of these rough economic times.  This is interesting in light of the fact that unlicensed and uninsured drivers are disproportionately involved in fatal accidents.

Apparently, several hundred thousand drivers throughout the country dropped their insurance in the past year and have chosen to enter the category of an uninsured motorist.  This decision could be attributed to the increased jobless rate.  However, this puts both yourself and others on the road at risk.  If you are driving without insurance and cause an accident, you could lose whatever assets you own in a court judgment.

If you are hit in a car accident by someone without insurance, you may be unable to recover damages that you suffer.  This is because many uninsured drivers do not have assets.  If you have motor vehicle insurance, there are some steps you can take to make sure you are protected if you are involved in a motor vehicle accident.  You can add uninsured motorist coverage.  This is extra coverage that will protect you if you are hit by an uninsured driver.  Also, by setting your insurance coverage proportionate to your assets, this can help you determine the limit of your uninsured driver coverage.  See our blog on New Hampshire Personal Injury Law.

About 20 states require drivers to buy coverage for uninsured or underinsured motorists. The coverage compensates policy owners and their families for injuries, including if they are injured as pedestrians, caused by hit-and-run drivers and drivers without insurance. However, this extra coverage does come at a price.  It usually adds between 7% and 9% to an average auto premium, according to State Farm Mutual Automobile Insurance Co. and Allstate Corp.