A growing problem: More risking driving uninsured

Rose Roper said she has finally resolved issues over a wreck she and her daughter had in March 2006.

By the numbers
Citations for violation of proof of insurance written by area police
Departments: 2008; 2009*
Florence: 1,623; 494
Muscle Shoals: 304; 64
Russellville: 706; 407
Sheffield: 404; 200
Tuscumbia: 112; 75
*From January 2009 to July 2009

Source: Area court clerks

Their car was totaled, and the man driving the vehicle that struck it did not have insurance.

Authorities expect that kind of problem to increase as more people drop their insurance coverage in a bad economy.

Roper said the situation surrounding their accident wasn't settled until she hired an attorney.

"We had to pay out of pocket and then had to use an attorney to get our money back," said the Muscle Shoals resident. "Insurance is expensive, but I'm glad I had full coverage. I don't know what I would have done without it."

John Heid, an official with Allstate Insurance in Atlanta, said that in 2007, 26 percent of Alabama drivers were uninsured.

"It stands to reason that the increase in the percentage of uninsured drivers will result in a greater likelihood that if you're involved in an auto accident, it will be with someone who has no auto insurance," Heid said.

Alabama is among 49 states that require drivers to carry insurance, and it requires drivers to have at least liability insurance.

Still, uninsured drivers are a problem.

"We continue to write citations for no insurance," said Florence police Lt. Tony Barnett.

Carolyn Gorman, an official with the Insurance Information Institute in New York, said the problem is not limited to a few states.

"It's a national problem and one that is growing," he said.

Officials with the Insurance Research Council noted that in 2007, 13.8 percent of drivers nationwide had no car insurance. That percentage is expected to increase to 16 or higher by 2010.

Gorman said research reveals that several hundred thousand motorists are expected to drop their insurance as the unemployment rate climbs.

In a recent study by Direct General, a Nashville-based automobile insurance provider, 36 percent of drivers say they will continue to drive even if they are unable to keep their car insurance.

"Our company wants people to think twice about driving without adequate automobile insurance coverage," said Direct General CEO Dan Tarantin. "Driving without insurance is illegal in most states, and yet consumers do think that many are willing to risk getting caught if it means continuing to be able to drive."

Gorman said when people lose their jobs, they could eventually be forced to make a decision on paying bills or feeding their families.

"And because of those kinds of decisions, they let insurance premiums lapse," Gorman said.

"It's really a tough decision. You have to work - most people have to drive to get there - so there's going to be a lot of general lawbreakers who are driving without insurance because they feel they have no choice."

Gorman said nearly all insurance carriers have something written into their comprehensive coverage plans to cover an accident with an uninsured driver, "which costs the consumer extra."

Alfa insurance agent Terry Oakley, of Florence, said that in Alabama, comprehensive policies include "uninsured, underinsured motorists."

"And if someone does not want that, they must sign a waiver for it to be excluded from their policy," Oakley said.

He said the uninsured, underinsured motorists policies cover personal injury to the driver if there is a collision with an uninsured driver.

"If I don't have the underinsured insurance and the driver that hits me doesn't have insurance, I'm up the creek," Oakley said.

"Most people are buying insurance to protect themselves if they hit someone, but with comprehensive coverage, which has the additional underinsured coverage, you are buying protection in case you are hit by an uninsured driver."

Oakley said generally $25,000 of coverage for the underinsured protection would cost $31 every six months. For $100,000 coverage, the premium would be $54 every six months, per vehicle.

"People who are living from day to day, they see (insurance) as an unnecessary expense. I see it as a part of my budget and a necessary expense," he said.

Barnett said some drivers have insurance, but let the premium default and don't renew it.

"They have to have insurance to get their vehicle tags, and a lot of people will pay the premium for a couple of months to get the tags, then when it's time to renew they just don't," he said. "So they're riding around without, insurance and that's the problem."

Some think the problem can't be corrected until the economy improves. Others think stiffer penalties could be the solution.

Violation of Alabama's insured drivers law can be costly.

According to the state statute, the first violation of failure to have proof of insurance can cost up to a $500 fine plus court costs. A second violation can mean a fine up to $1,000 and the suspension of the driver's license for up to six months, plus court costs.

Sheffield Police Chief Greg Ray said impounding vehicles could be another possibility.

"Then make them provide proof of insurance before the car is released back to them," Ray said. "I don't know if that's the answer, but I agree something needs to be done. We still write a lot of noninsured citations and it doesn't look like it's going to get any better."

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