According to a recent study, about one in six drivers may be on the road without proper insurance coverage by 2010. While the percentage of uninsured drivers has ranged from 13% to 15% in 2003 to 2007, it is expected that number will increase sharply. The council that ran the study reported that an increase of 1% in the unemployment rate was associated with an increase of approximately .75% in the uninsured motorist rate. The expected rate of uninsured motorists on the road is predicted to be 16.1 % by 2010.
If this becomes true, it will affect many of the motorists that are on the road with proper insurance. Insurance rates may climb higher than their present rate should the claims on uninsured motorists rise. Anytime an uninsured driver causes an accident, that uninsured driver is responsible for the damage that they cause including property damage, and personal injuries. The cost to repair many of the vehicles on the roads now can exceed $10,000.00. A bodily injury claim can also cost the insurance company $25,000.00 to $50,000.00 or even higher. hat is money that the insurance company may never recover due to the lack of insurance of the negligent party and the lack of job to earn income by the negligent party.
