Why Am I Paying So Much For Car Insurance in Philadelphia? And Why Are There So Many Uninsured Drivers - Who Is The Fool?
I met with a new client today who was paying what I considered to be an exorbitant amount of money for basic automobile insurance coverage in Philadelphia. Astoundingly as it seems, this person was paying approximately $3,500 for minimal basic $15,000 insurance coverage. More and more I find that my inner city Philadelphia clients are paying through the nose for insurance policies that provide minimal coverage. If one thinks about it, for a policy such as this with a $500 deductible the insured is really paying $4,000 for a policy that at best would pay out minimally.
Surprisingly, if this same individual was in a suburban area of the state, such as Pittsburgh or Monroe County, he could insure the same vehicle for less than one half of the Philadelphia insurance price. What I also should mention is that my client is a working mom, age 68-years old, earning $14 per hour, working 20 to 30 hours a week, which means that a good portion of her income goes towards her automobile insurance. This is a difficult and almost impossible situation for most individuals normally, and especially so in these recessionary times.
I recently reviewed an article by Steven E. Landsberg called “Uninsured Motorist Funk” which restated something that I have known and advocated for a long time. In brief, the theory is that uninsured drivers cause higher premiums and higher premiums cause uninsured drivers. Therefore, in a city such as Philadelphia with such a great number of uninsured drivers there is a high chance that if you are involved in an automobile accident you will have to collect from your own insurer even if you are not at fault.
When premiums are so high, many people opt against buying insurance thereby creating a plethora of uninsured drivers which creates a vicious cycle. With many people out of work or struggling to hold onto a job, it is not surprising that there are so many uninsured vehicles operating in Philadelphia.
If the insurance companies would charge lower premiums, perhaps more people could afford to be insured reversing this vicious cycle. Unfortunately, the efforts of the Commonwealth of Pennsylvania to enforce mandatory insurance coverage have been more than disappointing.
Unfortunately in our practice we see too many catastrophic injuries and fatalities that were caused by uninsured or minimally insured drivers and the situation is worsening. There is nothing worse than getting involved in an automobile accident and suffering injury or death and then recognizing that you have been involved in a situation with an uninsured motorist.
If you have been involved in a car accident with an uninsured or underinsured motorist, you should immediately consult with an attorney well versed and experienced in handling uninsured motorist matters. You and the attorney should closely examine your policy, the declaration sheet and any and all attachments to determine your rights. As a matter of fact it might not be a bad idea to check your automobile insurance policy right now to make sure that you are properly insured.
If you or a family member was involved in an accident where there is not proper insurance coverage, contact one of the experienced Philadelphia uninsured and underinsured car accident lawyers at the Philadelphia car accident law firm of Reiff & Bily at 1-800-421-9595 or online at www.reiffandbily.com.
