The whole point of auto insurance is to cover likely risks. This is why we’re protected against things like auto accidents, theft, vandalism, but we might not be covered if the car falls into a volcano, because that is highly unlikely to ever happen to us. We weigh our odds, we calculate our risks, and we buy the appropriate amount of coverage. This is why, when buying car insurance, it’s important to stay up to date on what those risks are because they can change overnight.
A Whole New World
In Park Falls, Wisconsin, we’re lucky to have a relatively low uninsured driver rate, generally speaking. The national average comes in at about 10% to 15%, with the least insured states having over 20% of their drivers carrying no insurance in states like Florida and New Mexico. In the ten best states, you have places like the Dakotas, at around 7%, and Maine, in first place at under 5%, according to the Insurance Information Institute.
In Wisconsin, year after year, our numbers are just under 15%. The last available report from the Insurance Information Institute puts us at 14.3%. On the higher end of average, but we’re doing a lot better than Mississippi, at 23.7%.
This is all information that has generally been true over the last several years. There are fluctuations, highs, and lows, and the top ten and bottom ten lists may reorder now and then, but Wisconsin tends to stay under 15% for uninsured drivers.
And now that we’ve shared this information with you, we regret to inform you that it won’t be relevant for very much longer.
Going Through Changes
Right now, companies in every industry are doing everything they can to retain customer loyalty through these difficult times. In the insurance industry, that means easing the financial burden of monthly bills. Many customers are getting refunds on premiums for months where they weren’t doing much driving, and insurers are offering deferred payments, meaning that you can put off your premiums for the time being with no late fees or cancelation.
Many drivers are choosing to reduce their coverage so that when those deferred bills come due, the total cost will be lower than it might have otherwise been. However, some drivers are simply canceling their insurance and continuing to drive. In short, we’re probably going to see our uninsured and underinsured driver rates go up very soon. Maybe by a little, maybe by a lot, but certainly by enough to notice.
To put that simply: The risks that we are facing out on the road need to be reevaluated. We know you’re tired of all this reevaluating. It’s been a long year, and we could all use a day off. But the fact remains that, if you are in an accident in the near future, the odds are higher than ever that the other party will be an uninsured motorist. As a responsible driver, it’s going to be your duty to make sure that you’re prepared for that possibility.
If you have any questions you’d like answered, or if you’re looking to ensure that you’re getting the right coverage for you, get in touch with us at First National Insurance and let’s see what we can do for you.