Car insurance has gotten so expensive in the past few years that some Americans are taking extreme measures. A new survey from Jerry shows that high car insurance prices are taking a big toll — 17% of Americans have chosen to go without car insurance because of unaffordable premiums.
It’s understandable that some Americans are feeling big financial stress from car insurance costs. But going without car insurance is a bad decision. Don’t do this! Even if it’s for a short time, drivers who choose to skip car insurance are putting themselves at risk for catastrophic costs and legal consequences.
Let’s look at a few extreme ways that Americans are coping with high costs of car insurance — and what drivers should do instead.
Car insurance prices are forcing Americans to cut spending
A new survey from car ownership app Jerry found that Americans are suffering from the high cost of car insurance. Approximately 74% of people said that car insurance has become unaffordable for the average American family.
Here are a few ways that Americans are trying to make up for high car insurance costs, according to the Jerry survey:
- 60% of drivers settled for less auto insurance coverage than they needed.
- 22% of drivers chose a higher deductible on their auto insurance — but 40% don’t have enough money in the bank to cover the deductible if they got in a crash tomorrow.
- 57% of Americans are cutting back on other spending because of high car insurance costs — for example, 24% of people are spending less on groceries.
Most American communities were built for cars and lack high-density, affordable, convenient public transit. Car insurance is a necessity for many people’s everyday transportation in America. Unfortunately, car insurance has become so expensive that many Americans are forced to cut back on other essentials so they can keep driving.
17% of Americans have gone without car insurance
One of the most troubling stats from the Jerry car insurance survey is how many Americans are choosing to go without car insurance altogether. Of those surveyed, 17% told Jerry that they have gone without car insurance for some period of time within the past 12 months — up from 11% one year ago.
Going without car insurance is a huge risk, because it leaves drivers unprotected from the catastrophic costs of a car crash. Drivers who get in a crash while uninsured are likely to be on the hook for thousands of dollars’ worth of car repairs, and potentially tens or hundreds of thousands of dollars in medical bills and legal fees.
And even if drivers don’t get in a collision while uninsured, in most states, driving without car insurance is a crime. Choosing to go without car insurance can lead to fines, driver’s license revocation, and even jail time.
6.7% of drivers lied to car insurance companies
Another shocking stat from the Jerry car insurance survey: 6.7% of Americans admitted to providing false information (lying) to car insurance companies to try to get cheaper car insurance. Just like going without car insurance, this is also a bad decision. It’s also considered insurance fraud, which is a crime.
Lying to insurance companies during a car insurance application is known as “soft fraud.” It could include lying to insurance companies about where a driver lives or where a car is located, or lying about the number of drivers on an auto insurance policy.
Car insurance fraud is a crime in all 50 states, and it can lead to substantial fines and years in prison. It also drives up costs for other drivers, as the insurance industry must raise its prices to cover the losses from fraud. It’s disappointing to think that so many Americans are feeling stressed enough by expensive car insurance that they would rather take a chance on going to prison.
The right way to get cheaper car insurance
Going without car insurance or committing fraud should never be considered valid ways to save money. Instead, more drivers need to shop around for auto insurance price quotes.
Different auto insurance companies have different ways of evaluating and pricing risk. Even if a driver’s current auto insurer has raised its rates, other companies might be willing to give that driver another look — and offer a lower premium.
Bottom line
Don’t go without car insurance, and definitely do not lie to car insurance companies. It’s frustratingly expensive to be a car owner in America right now, but committing crimes is not the answer.
And even if a full coverage policy is too expensive, most drivers should still be able to find an affordable liability auto insurance policy that meets state minimum requirements and fits their budget. Drivers who have accident history can often get insurance from a state-assigned risk pool for high-risk drivers. This is a better option than committing fraud or going without coverage altogether.
