4/27/2011 - Survey: More people shedding optional auto insurance coverage policies due to economy
A new survey appears to indicate the fragile economy has more people cutting back on how much auto insurance coverage they're willing to buy.
According to a study conducted by Quality Planning
, a statistical analysis and research organization, a growing number of policyholders are opting not to purchase optional auto insurance coverage plans.
Since 2006, according to the study, the trend has steadily increased every year, particularly among policyholders with older vehicles. For instance, since 2006, Quality Planning found that the average percentage of older vehicles without collision or comprehensive coverage increased from 53 percent to 63 percent.
The study also found that policyholders are increasing their deductibles as well, another cost savings method many auto insurers recommend.
Most states require motorists to purchase liability coverage. The minimum amount varies from state to state, but the Insurance Information Institute recommends having at least $100,000 of bodily injury protection and a $300,000 limit per accident.