{"id":2021835,"date":"2023-09-05T00:17:01","date_gmt":"2023-09-05T04:17:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/soaring-car-insurance-costs-lead-many-to-opt-out\/"},"modified":"2023-09-05T00:21:56","modified_gmt":"2023-09-05T04:21:56","slug":"soaring-car-insurance-costs-lead-many-to-opt-out","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/soaring-car-insurance-costs-lead-many-to-opt-out\/","title":{"rendered":"Rising car insurance prices prompt many to decline coverage."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fsoaring-car-insurance-costs-lead-many-to-opt-out%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2021835&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div data-post-content=\"true\" class=\"post_content\" id=\"post_content\">\n<h2>Escalating Auto Insurance Rates Leave Americans at Risk<\/h2>\n<p>Skyrocketing prices for\u200d auto premiums have led \u200dincreasing numbers of \u200dAmericans to take to \u2064the road without \u200dinsurance, creating a dangerous cycle of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/mortgage-rates-close-in-on-7\/\" title=\"Mortgage Rates Close in on 7%\">escalating rates<\/a>\u200b while putting a record number of drivers in economic \u200cand legal peril.<\/p>\n<blockquote>\n<p>\u201cA lot of people just don\u2019t\u2063 understand how serious of a problem this has become,\u201d Loretta Worters, vice president of media relations for the Insurance Information Institute, told The Epoch \u200bTimes.<\/p>\n<p>\u201cDriving without\u2062 car insurance\u2062 is against the \u200dlaw; this means more people are at risk of \u200bgoing bankrupt \u200cor even \u2062going to jail,\u201d she said.<\/p>\n<\/blockquote>\n<div class=\"shortcode\">\n<div class=\"border-comp-divider mb-4 mr-4 w-full max-w-[500px] border px-5 py-4 text-[16px] leading-[20px] text-[#262626] md:float-left\">\n<div class=\"mb-3 font-sans text-[16px] font-semibold uppercase leading-[19px] text-[#2F2F2F]\">Related \u200dStories<\/div>\n<ul>\n<li>\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\">\n              <a href=\"http:\/\/www.theepochtimes.com\/opinion\/a-lot-to-blame-including-inflation-for-florida-insurance-debacle-5432158\">A Lot to Blame (Including Inflation) for \u2063Florida Insurance Debacle<\/a>\n            <\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">7\/30\/2023<\/div>\n<\/p><\/div>\n<\/li>\n<li>\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\">\n              <a href=\"http:\/\/www.theepochtimes.com\/bright\/family-finances-reshopping-auto-insurance-in-a-high-inflation-world-5051482\">Family Finances: Reshopping Auto Insurance in a High-Inflation World<\/a>\n            <\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">2\/11\/2023<\/div>\n<\/p><\/div>\n<\/li>\n<\/ul><\/div>\n<\/p><\/div>\n<p>Cost is the \u200cnumber one reason drivers opt out of car insurance, with \u200bmore than\u200b eight out of 10 of the millions of people who drive without insurance claiming they are uninsured because they can\u2019t afford \u2062to \u200dget coverage for their vehicles, so they drive without it. In 2021, more than 32 million Americans were driving without insurance,\u200d according to the most recent data from the Insurance Research Council.<\/p>\n<p>In 2023, car insurance rates increased\u200c almost\u200b 14 percent\u200b from the previous year, raising the national average for full coverage car insurance to $2,014 this year, up from $1,771 in 2022, according\u200b to Bankrate.<\/p>\n<p>However, rates vary dramatically \u2063between states\u200b due to different \u200cregulations and traffic risks. In\u2064 Michigan, the state with\u2064 the highest average\u200b price, \u2062car insurance will cost $4,788 a year. In Vermont, the \u200bstate with the lowest average\u200c price, car insurance will cost $1,104, \u2062the report said.<\/p>\n<p>This trend is likely to accelerate as soaring inflation continues to \u200bexceed wage growth, forcing \u2063many Americans to dig deeper\u200b for ways to trim their budgets, \u200baccording to Mrs.\u200d Worters.<\/p>\n<p>\u201cAs a result of the cost of everything going up, people are \u200bstruggling and \u2062cutting back \u2062wherever they can, and for a lot of \u2063these people, unfortunately, their car insurance is one of\u200d the first things to go,\u201d said Mrs. Worters.<\/p>\n<p>\u201cIt could put people in a terrible situation,\u201d she added.<\/p>\n<h2>When Inflation Hits<\/h2>\n<p>Due to \u200dthe large rise in premiums, drivers already spend nearly 3 percent of their \u200dincome on auto \u200binsurance alone\u2062 while dealing with soaring prices of other goods\u200d and services.<\/p>\n<p>Inflation, caused primarily by the dramatic increase in the \u200cmoney \u200csupply, is already forcing Americans to spend $709 more per month on everyday goods and services than they did just two years ago, according to Mark Zandi, chief economist at\u2063 Moody\u2019s\u2063 Analytics.<\/p>\n<p>\u201cThe high inflation of the past 2+\u200c years has done lots\u2063 of economic damage,\u201d Mr. Zandi tweeted on \u200bAug. 10. \u201cDue to the high inflation, the typical \u200dhousehold spent $202 more in a July than they did \u200ca year ago to buy \u200bthe same goods and services. And they spent $709\u2062 more than they did 2 years ago.\u201d<\/p>\n<div style=\"margin-left:0;margin-right:0;max-width:1200px\">\n<figure style=\"width:640px;margin-left:auto;margin-right:auto\" class=\"alignnone\"><figcaption>Traffic in Los Angeles, Calif., on Nov. 7, \u20632011. (John Fredricks\/The\u200b Epoch Times)<\/figcaption><\/figure>\n<\/p><\/div>\n<p>Having at least some level of insurance\u200c before driving is a legal requirement in every state except New Hampshire. Twenty-one states and the\u2062 District of Columbia had uninsured motorist rates higher than the countrywide rate of 12.6 percent. Mississippi has the highest uninsured motorist rate in the nation at 29.4 percent.<\/p>\n<p>The penalties for being caught driving without <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/soaring-car-insurance-costs-lead-many-to-opt-out\/\" title=\"Rising car insurance prices prompt many to decline coverage.\">legally mandated insurance range<\/a> from hefty\u200c fines to a \u200bdriver\u2019s license suspension and \u2064possibly jail time.<\/p>\n<h2>Industry Fears<\/h2>\n<p>In the short term, the problem of uninsured drivers is expected to worsen, with the number expected to rise further, stoking fears of a \u200bpotential death spiral \u2062for the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/nearly-2-million-without-power-amid-u-s-deep-freeze-thousands-of-flights-canceled\/\" title=\"Nearly 2 Million Without Power Amid U.S. Deep Freeze, Thousands of Flights Canceled\">car insurance industry<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Skyrocketing auto premiums force more Americans to drive uninsured, causing a dangerous cycle of rising rates and putting drivers at economic and legal risk. Loretta Worters, VP, emphasizes the seriousness of this issue, as many fail to comprehend its magnitude.<\/p>\n","protected":false},"author":2342,"featured_media":2021837,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2021835","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2021835","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2342"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2021835"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2021835\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2021837"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2021835"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2021835"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2021835"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}