Drivers, faced with less buying power with their dollar and increases at the gas pump, are trimming their auto insurance coverage, according to a regional insurer.
Drivers are seeking the changes to save money, according to AAA Insurance, the insurance arm of AAA Mid-Atlantic, which serves Maryland, New Jersey, Pennsylvania, Virginia, Delaware and Washington, D.C.
Motorists are opting for higher deductibles, lower limits on their bodily injury coverage and more “liability only” coverage at the cost of comprehensive and collision coverage, according to the insurer.
The carrier points out that economic conditions have created a hardship for many people, but having too little or no auto insurance could create an even worse situation. The U. S. Department of Transportation estimates that the typical driver will have a near automobile accident 1 to 2 times per month and will be in a collision every six years.
“We have more uninsured and underinsured drivers on the road right now,” said Donna Lee Williams, director of government and industry affairs for AAA Mid-Atlantic, said in a statement. “Families looking to save money in these tough economic times can find plenty of ways to their lower insurance premiums without putting anyone in legal or financial jeopardy.”
This story originally appeared in the July 2009 print edition of Insurance & Financial Advisor.
Motorists decelerating on their auto coverage via IFAwebnews .