Crisis, California and Car Insurance

What do the current economic crisis, California and car insurance have in common? On the surface, not a lot. However, if you look deeper, the current car insurance scenario in California could be a barometer to Americans’ attitude towards finance in general.

For instance, a recent study says that many people (read Californians) might forego car insurance, given the state of economy. This is augmented by the fact that the Venture county Insurance Research Council (IRC) found 18 per cent of California drivers lack auto coverage. Yet another research says the economic slowdown and/or the imminent and unpredictable danger of lay-offs is prompting more cash-sensitive people to get behind the wheel without insurance.

“An increase in the number of uninsured motorists is an unfortunate consequence of the economic downturn and illustrates how virtually everyone is affected by recent economic developments,” said IRC senior vice president Elizabeth Sprinkel. “Responsible drivers who purchase insurance end up paying for injuries caused by uninsured drivers.”

Ventura County, where a low cost auto insurance program was introduced last year, still saw a low turn-up of people who actually signed up to take the insurance. The county’s Commissioner Steve Poizner may have a point there when he says, “We are going to ramp up this low-cost auto program and expand the number of agents and brokers selling it.”

Perhaps more than anything else, it’s a matter of spreading awareness about various auto insurance schemes that we see coming up lately. Insurance in any form is never a bad idea, and it may work out to compare car insurance quotes available online.

If nothing else, it could give you an idea of where you stand and perpare a launch pad for planning your auto insurance.