Claudia Buck: Shop, but don't drop, car insurance policies

The recession has run a few drivers off the road, at least when it comes to keeping their auto insurance coverage.

Pinched by pay cuts, job losses and other financial hardships, consumers are downshifting: cutting back on coverage, shopping for more competitive rates or, in some cases, letting their insurance lapse to save money.

Nationally, the number of motorists without auto insurance is expected to increase from 13.8 percent in 2007 to 16.1 percent in 2010, largely due to the sputtering economy, according to a study earlier this year by the Pennsylvania-based Insurance Research Council.

California and Arizona – each with an estimated 18 percent of uninsured motorists – tied for seventh place among all states, according to the IRC's January study. And that was as of 2007, before the recession caused widespread unemployment and upheaval.

The trend has naturally troubled the insurance industry. Earlier this year, state Insurance Commissioner Steve Poizner traveled the state, urging Californians to stay insured and seek out low-cost insurance.

"In today's tough economy, many drivers are looking for ways to cut their expenses and some are undoubtedly considering eliminating auto insurance," Poizner said this week in an e-mail, "but driving without insurance is illegal and puts all travelers at risk."

There are money-saving routes on car insurance that stop far short of dropping coverage altogether. Here's a look at where you can start.



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