Recession And Auto Insurance In Florida

Apart from driving the unemployment up, the recession has also had its effect on the number of uninsured drivers in Florida. This is a bad news for everyone on the road.

By Florida law, you must carry a minimum of $10,000 personal injury protection (PIP) and $10,000 property damage liability (PDL) insurance for every car with a Florida license plate. Unfortunately, this bare bones minimum coverage does not provide compensation for injuries.

The insurance industry has created a group called Insurance Research Council, which claims that the number of uninsured drivers has increased in the last year. It also predicts that by next year 16 percent of all drivers will be without car insurance.

A leading online car insurance company states that 40% of all enquires are made by people without current car insurance cover. Big increased compared to 2008 when only 10% of people have let their auto insurance to expire.

If an insured motorist has an accident with an uninsured driver, in many cases the insured driver is going to have to deal with the financial consequences of the accident, regardless who was at fault.

That’s why experts urge drivers to check their Florida auto insurance to make sure it includes uninsured motorist coverage.