Minnesota ranks on the better end of average when it comes to uninsured motorists. The top ten most-insured states list starts at 7.7% for South Dakota. We’re not quite in the top ten, but we’re not too far behind, at 11.5%. As far as safe highways go, Minnesota isn’t a bad place to be. But that might be about to change.
Hills and Valleys
What we’re seeing with the crisis we’re facing right now is a whole lot of statistical spikes and valleys where numbers have historically tended to remain fairly steady. The obvious ones are things like unemployment. Where you could generally expect to see it rise and fall within a certain range, now we’re seeing big drops, big recoveries, and big drops again.
When it comes to our highways and city streets, these spikes and valleys bring both good news and bad news.
The good news:
- Traffic accidents are at a staggering low because there are fewer people on the road.
- Many insurance companies are offering refunds on premiums since their customers aren’t driving as much
- Many insurance companies are offering deferred payments
And the bad news:
- Those deferred payments do have to be paid someday
When those deferred bills stack up, some drivers may be able to pay them, and some may opt for reduced coverage to close the gap, some may cancel their insurance and take a break from driving until they can get their insurance situation in order. Some, on the other hand, may cancel their insurance, and then continue driving.
This means that our 11.5% uninsured motorist rate is about to spike.
The spike might not meet the most dire possible estimates, but it’s unlikely to meet the most optimistic estimates, either. It is difficult to say precisely how high the number will spike, but it’s certainly not going to remain at 11.5%.
Prepared for Almost Anything
In matters of insurance, we generally make our purchases based on likely hazards. If you live on top of a hill in a dry climate, flood insurance might not be a big priority for you. Many Minnesota drivers, knowing that our uninsured motorist problem isn’t as bad as some states, may have skipped buying uninsured and underinsured motorist insurance in the past. At 11.5%, many drivers are willing to take those odds.
But that won’t last.
It could be a few weeks, or it could be a few months, but when those deferred bills come due, we’re going to see a big spike in uninsured and underinsured drivers out on the roads of St. Paul and Virginia, Minnesota. When that happens, you will want to be covered against the increased likelihood that, if you are in an accident, the other driver might not have the insurance to pay for your losses.
You can’t be prepared for everything, but you can be prepared for the hazards most likely to occur on the road. In the past, uninsured motorists may have been a higher priority for some than others, but very shortly, it’s something with which we’re all going to need to be concerned.
If you feel that your current auto insurance is not protecting you against uninsured and underinsured drivers, or if you simply have some questions that you would like answered by one of our agents, get in touch with Krog Insurance and let’s see what we can do for you.
