The Effect of Expensive Insurance Policies to Millions of Drivers in the U.S.

Posted by on May 18, 2016 in Insurance Claims | 0 comments

According to the Insurance Research Council, an independent, nonprofit research organization, more than 29 million drivers and car owners in the U.S. continue to drive without insurance. This translates to one in every eight drivers on U.S. roads and highways. Car liability insurance is a document that drivers need to show whenever they renew their driver’s license, re-register their car, get pulled over by a traffic officer or when they cause an accident. Failure to prove that they are covered can result to suspension of their driver’s license and driving privileges and may be required by the court to file an SR-22, a certification of their purchase of a car insurance policy which, this time, will cost more expensive (the SR-22, by the way, usually lasts for three years and require an additional fee on top of the insurance premiums that drivers need to pay).

Carrying car liability insurance is mandated in all U.S. states (except in the state of New Hampshire where drivers may instead deposit securities or money with the state treasurer). If being insured is truly a mandate, however, then how is it that millions of uninsured drivers are able to renew their license and car registration?

What many of these drivers usually do is purchase a policy, but only for the purpose of re-registering their car and license. After having done these, they stop paying the premium which they consider is too costly to maintain. Auto insurance firms, on their part, will, of course, neither hesitate nor delay in canceling the coverage due to non-payment.

Well, affirming that insurance policies are expensive is not deviating from the truth. Millions of drivers and car owners are paying premiums that are actually twice as much as they need to pay. Despite the unnecessarily expensive coverage, no one from the insurance firm will voluntarily tell drivers about the possible reductions in their premium unless they ask.

Drivers and car owners, however, do not have to pay for a costly car insurance coverage and still get all their insurance needs. According to the website of Schuler, Halvorson, Weisser, Zoeller and Overbeck, P.A., free online car insurance quotes allow drivers to compare as many as a dozen quotes all at once.

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