You might think car insurance is a necessary evil, but not everyone thinks it’s necessary. Some people think it’s just plain evil. 😈 Well, the cost of it sure is evil, especially in this economy. 💁🏻♀️
There are many reasons for the rise in car insurance rates these days. 📈 One biggie is an increase in uninsured drivers on the road, so here we break it all down.
Here’s Five Fast Facts on car insurance rates and uninsured drivers:
- ⏫ Rise and Shine - The number of uninsured drivers has been rising since the beginning of the pandemic. In 2019, around 11% of drivers were uninsured. In 2022, that number jumped up to 14%.
- 🚙 Drive Me Crazy - Which states have the most uninsured drivers? Mississippi, New Mexico, and Washington, D.C. Ohio’s uninsured drivers are also on the rise. Ranked 10th on the list, noncompliance suspensions (i.e. failure to show proof of insurance when stopped by police) jumped 16% between 2020 and 2023.
- 🪣 Running Dry - How do uninsured motorists cause our insurance costs to rise? Whenever someone drops their coverage, less money gets dumped in an insurance company’s premium pool. In other words, there’s less cash in the pot to cover everyone’s needs. Today, the average car insurance policy costs $2,278 per year, a 12% jump from last year.
- 💰 Protection Pay - In 2020, car insurance policyholders forked over a whopping $16 billion for uninsured and underinsured motorist coverage. That’s significantly more than the 13 billion they paid in 2016.
- 🫣 Risky Business - When it comes to penalties for driving without car insurance, states and cities have different rules. Many states charge a fine for a first-time offense. Some states crack down harder with a license suspension or jail time. Fun fact: New Hampshire is the only state where driving without insurance coverage isn’t illegal.
🔥Bottom line: Housing, healthcare, utilities…you name it. It’s all expensive out there. While many Americans are cutting their car insurance to save money, it’s a risky gamble. If you get into an accident, it could wind up costing you big time. Need to boost your credit score? This article shows you how to report your rent payments to the major credit bureaus.
How much do you pay for car insurance?
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