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  Business


AUDIO Economic Crisis Impacts Auto Insurers
 2/17/2009 10:22:14 AM  |  Larry States

Some insurance agents and officials say job losses, tight budgets and the weak economy are forcing more motorists to cut back on auto insurance or cancel their policies.



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An industry research group estimates that for every percentage point increase in unemployment, the rate of uninsured drivers rises by three-quarters of a percentage point.

Mitch Wilson of the Ohio Insurance Institute says its too early to tell statistically whether a significant amount of motorists are cancelling or reducing auto insurance coverage. Wilson says Ohio has a financial responsibility law that requires drivers to show proof of insurance or financial responsibility if they don't have insurance coverage.

Mitch Wilson says the Ohio Bureau of Motor Vehicles operates a random verification program that every year samples about 5% of the state's population to determine if they have auto insurance or are financially responsible for paying accident damages if they are not insured.  

 
LISTEN to Larry States talk to Wilson about uninsured motorists 
 
Wilson says "With unemployment up, with individuals having to make very tough choices . We don't deny there could be a increase in the number of people making choices purchasing insurance versus putting food on the table, however we still stand behind the current enforcement measures and their cost effectiveness, the results that keep Ohio's uninsured motorists rate very low, comparatively speaking." Wilson says the random survey will determine just how many motorists are violating the state's financial responsibility law. He says if the number of uninsured or under-insured motorists increase it will be up to state lawmakers to determine how to deal with the issue. Wilson goes on to say " We'll be keeping an eye on it, just as the Ohio Bureau of Motor Vehicles will be keeping an eye on it as well."


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