The previous post revealed findings by the Insurance Research Council. IRC stated that 1 in 6 drivers on U.S. roads will be uninsured by the year 2010.  The recent study by Allstate Insurance reveals nearly 1 out of 4 drivers on Florida roads do not have automobile insurance and that number will continue to increase as the economy worsens.

According to this study, twenty three percent of Florida drivers on the road in 2007 were driving without insurance. As these numbers continue to increase, we are all at a greater risk for being involved in an accident with an uninsured motorist, should an accident occur.

The correlation between our state’s unemployment rate and the percentage of uninsured motorists underscores the need to check your policies and make sure you have the coverage you can afford. If you need additional information, request a free copy of James W. Dodson’s consumer guide, Buying Car Insurance-The Ultimate Guide to Your Protection from Irresponsible Drivers in Florida.

The “aggrieved class” included customers who purchased certain cosmetics between May 29, 1994 and July 16, 2003. The settlement required the companies to give $175 million of free cosmetics “for as long as supplies last” beginning Jan. 20th.

The article’s writer went to a department store only to find the free supplies had lasted only days! Her point, however, was the lawyers who filed the suit were paid $24 million while the settlement benefited an insignificantly small number of the aggrieved class, who had allegedly been wronged.

I fully understand the value of class action lawsuits which have clearly served a larger good. For example, companies causing soil and water pollution come to mind, when no individual plaintiff could afford to take on the company. In such cases, they were exactly as designed.

The cases, however, which dominate the news, are ones like this cosmetic case or one involving toothbrush manufacturers- where the aggrieved class gets a new toothbrush while the lawyers receive millions of dollars. Everyone has their pet example since most of us receive notice regularly that we are a member of some aggrieved class, which some lawyer is suing for our alleged benefit.

This is another example of the doctrine of “unintended consequences.” The drafters of the class action laws, I’m sure, never intended them to be used to enrich lawyers, while the affected parties received a few cents. Unfortunately, it plays into the hands of the tort reformers who argue our system is broken.

I am opposed to broad tort reform; we have certainly had enough of that in Florida. However, unless these types of class action suits are limited, we may lose large ground in the tort wars as these cases are trumpeted as evidence to bolster the reformers agenda.

As the unemployment numbers inch up in Florida and economic pressures continue to increase, we can expect the number of uninsured drivers to continue to increase. In addition, many people looking to save money will be lowering their coverage. I would urge you to resist this temptation. Bear in mind that no one thinks they will be the victim of an accident, much less by an uninsured driver. Virtually every client in my practice never thought they would be hurt in an accident, either. During these tight times don’t save money by reducing your auto coverage, if at all possible. Your uninsured coverage (UM) may be one of the most important protections against financial disaster. For more information request a copy of Jim Dodson’s free consumer guide, Buying Car Insurance available at www.TheFloridaInsuranceBook.com.

The Law Office of James W. Dodson, P.A., has recently published another article directed to consumers providing free information and to answer any questions.  Jim’s article “Florida Car Insurance . . . What Does “Full Coverage” Really Mean?” is now available for viewing and printing on Jim’s website.

The Law Office of James W. Dodson, P.A., provides FREE information to consumers about car insurance.  If you need more information please visit our website and request Jim’s book Buying Car Insurance, free of charge, or if you have been injured in a car accident or otherwise, and would like to schedule a consultation please call (727) 446-0840.