Power.īut even if you’re battling higher car insurance costs, experts warn that dropping your coverage entirely could end up costing you even more.
“It’s increasingly difficult for consumers to find lower premiums” so “they’re increasingly driving without auto insurance now,” says the report’s author, Stephen Crewdson, senior director, global insurance intelligence at J.D. Among people whose households have at least one vehicle, 5.7% said they no longer have car insurance, up from 5.3% in late 2022, it found. In the first half of 2023, the number of uninsured drivers grew by 30% in a dozen states, according to a recent J.D.
That’s up 19% from a year ago and more than 35% from the same month in 2020.ĭrivers in some parts of the country are seeing their rates jump by double-digit percentages this year alone. The cost of a typical motor vehicle insurance policy hit an all-time high of $742.29 in September, according to the Bureau of Labor Statistics. Saving hundreds of dollars in premiums per month sounds appealing, but from a financial-and legal-perspective, that risky decision could have serious consequences.
As car insurance premiums skyrocket, more and more drivers are opting to drop their policies.
