Auto Insurance Delinquencies

As gas prices continue to rise, and home mortgages continue to default, the number of people who are choosing not to pay their auto insurance is increasing as well. Many don’t have the money to pay for car insurance any more, so they are letting their policies lapse.

The auto insurance companies say that this is bad for both them and for the other drivers on the road. They say that being hit by a driver without car insurance isn’t just a minor hassle. You have to go after them for any money that they are due you, and in today’s current financial climate that doesn’t always mean that there is any there.

Auto insurance companies say that when more drivers don’t have car insurance, the balance of what has to be made up gets made up by those that are already paying. This means that if you have auto insurance, your premiums are going to go up to pay for those that aren’t paying their fair share.

It’s not fair to those that are already paying high premiums, and a change must be made before those that are paying can’t afford the increase in price either. Some argue that the auto insurance companies have been working at a profit all of these years so they can afford to eat some of the costs. This might seem like a valid resource, but they say that they don’t have the money to cover all the claims that are out there from those that aren’t paying their car insurance premiums.



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