Illinois state officials, insurance companies dispute uninsured motorist projection
According to the Insurance Research Council's Uninsured Motorists, 2008 Edition, by 2010 16% of all drivers in the United States will be uninsured. The Insurance Research Council says there is a correlation between unemployment rates and the increase in uninsured motorists.
Elizabeth A. Sprinkel, Senior vice president of the Insurance Research Council says "an increase in the number of uninsured motorists is an unfortunate consquence of the economic downturn and illustrates how virtually everyone is affected by recent economic developments."
Illinois officials and the insurance industry disagrees. The Illinois Secretary of State's office Mandatory Insurance Division reported that less than 5% of Illinois drivers did not have insurance in 2007. The Insurance Reseach Council says the number is closer to 15%.
According to Jim Schneider, an administrator of the mandatory insurance division, says methodology is the reason for the disparity. Schneider claims the the Insurance Research Council bases its figures on the number of injury claims in accidents, which means it counts the number of people with injuries and not just the accident.
Kip Diggs, spokesperson for State Farm in Bloomingt, IL., says it's news to him. Their numbers do not indicate any drop in coverage.
Beth Mosher, a spokeswoman for AAA, said cutting back on insurance when money is tighter, is not a good idea. Consumers need insurance now more than ever to protect their assets in the event of an accident.
