Car insurance is essential. It’s mandated in all states, to varying degrees, but it ensures that when we are involved in a car accident, those damages will be covered, whether that is through no-fault personal injury protection (PIP) benefits or through bodily injury liability coverage from the at-fault driver’s insurer. Other times, it’s derived from uninsured/ underinsured motorist (UM/UIM) coverage, which protects those who are insured in case they are struck by someone who lacks insurance or doesn’t have enough insurance to cover the full extent of the damages.
Previous reports in Florida show that 1 in 4 drivers in the Sunshine State are driving without any insurance at all. A far greater number are driving on only the minimum amount of coverage mandated by law.
Now, a recent study by the Federal Insurance Office reports that millions of Americans live in regions where car insurance is not affordable. The agency looked at auto insurance premiums for basic liability coverage of motor vehicles in some 9,000 zip codes that have a high number of “under-served” consumers – including those with low to moderate incomes and those who are minorities. What they discovered was that the rates were not affordable in 845 of those zip codes analyzed. That’s approximately 9 percent of those areas, which equates to about 19 million people nationally. Continue reading →