In these unsure economic times, lots of folks are looking for ways to save money, cutting everything out of budgets they can spare. But dropping uninsured motorist coverage from auto policies is a big mistake. Yes, monthly premiums will decline. But cutting that coverage could cost a lot more in the long run. Why? Drivers will have to pay a lot more of their own bills if they are involved in a bad accident with an uninsured motorist. How likely is that? Take a look at the odds.
Texas is a good example. In spite of the fact that state law requires drivers to carry insurance, statistics show that 20% of the drivers in Texas are driving with no insurance. That number rises significantly in urban areas. Drivers without uninsured motorist coverage to protect themselves from irresponsible drivers have to rely on their own auto insurance to pay for the accident. A bad accident with an uninsured driver can leave victims with medical tabs that run into the thousands of dollars. If a breadwinner is sidelined with those injuries and a car is totaled as a result of the accident, bills can go unpaid and credit can be ruined. Personal injury lawyers are hard pressed to find anyone to sue for damages on the victim’s behalf. This is one case where short term savings risk long term disaster.
