As the economic downturn worsens, many people will likely be looking for new ways to cut corners in every facet of their lives to try to make ends meet. One of the areas already being impacted is automobile liability insurance coverage. This is the insurance that covers you when you are in an auto accident and are injured because of the fault of another driver. In some states like California and Arizona, as many as 20% of drivers have no insurance at all. In New York, the estimated percentage of drivers without insurance is lower – estimates range from 3 to 8%. We can expect that number to grow as those affected by the economic downturn opt to pay rent or buy food rather than pay their automobile insurance premiums.
New York Drivers Need to Protect Themselves By Making Sure They Have Enough “SUM Coverage”
Even before the latest economic crisis began, drivers in New York could choose to register a motor vehicle and buy only the minimum $25,000 of liability coverage required by law. In fact, for people who have had multiple accidents, $25,000 is frequently all the liability insurance a company will sell to them. These people are in what the insurance companies refer to as the “high risk pool.” Not coincidentally, the people who cause the most accidents and injure the most people on the road are well-represented in this high risk group. [Read more…]