Seth Rachlin Discusses Rising Car Insurance and Underinsured Motorist Coverage

Harris Public Policy Lecturer Seth Rachlin was featured in WalletHub, discussing the rising cost of car insurance and policies regarding underinsured motorist coverage. 

"States have taken different approaches towards uninsured motorist insurance. In about 19 states and the District of Columbia, every motor insurance policy must include uninsured motorist coverage. In some states, this can be waived off by a written declaration from the policyholder. Another approach makes it mandatory for insurers to offer uninsured motorist coverage to their customers, but customers can choose not to buy it. A few states do not have any requirements for uninsured motorist coverage.

The approach taken by a particular state could be motivated by several factors, such as car accident rates or insurance expenditures," Rachlin said. "States such as Massachusetts, Maine, and Maryland have the highest car accident rates and have mandated uninsured motorist coverage, possibly to protect the interests of its drivers. Additionally, states like Maine, Wyoming, and South Dakota have some of the least expensive insurance premiums but require drivers to have uninsured motorist coverage. This could be to create a healthy financial environment for insurance companies operating in such states. Some states such as Florida and Michigan have taken the no-fault route and have mandated personal injury protection cover."

Full coverage available at WalletHub.