With the economy still in the doldrums, polls show that people are either dropping to lower car insurance coverage or driving without insurance.

The latest poll by the National Association or Insurance Commissioners show that 1 in 7 drivers do not have car insurance at all, while 1 in 5 people
have dropped parts of their coverage. Even though driving without any insurance is illegal in almost every state, people are still doing it.

Many people are getting a double hit by the downward economy as it pertains to car insurance. One of the factors in determining one’s car insurance
rates is your credit score. Should you lose your job and fall behind on the bills, causing your credit score to decrease, it would cause an uptick in
car insurance rates at the exact wrong time for the consumer. Most people do not realize that credit score is important in determining the premiums.

Many people also do not realize the ling term effects of not having car insurance. You can be severely fined if you are caught driving without
insurance. Should you need it, you will not have any coverage, causing long term financial stress. Also, even if nothing goes wrong, should the person
decide to get insurance in the future, they may see the rates increased due to the gap in their coverage.

Should you be considering dropping your insurance please keep these points in mind:

• It may be significantly more costly long term

• If you are able to car pool or drive less, alert your agent and he may be able to lower your rates

• Try to improve your credit score

• Shop around and get more quotes before dropping it altogether. Prices can vary significantly

• Change to a cheaper and safer car

It is a very difficult time for many financially, but insurance should not be dropped if at all possible. It is not a luxury, it is necessary for your
financial health as well as required by law.