Uninsured Driving: A Decline in 2022 Amidst a Pandemic-Driven Rise

The Trend of Uninsured Driving

In 2022, the percentage of uninsured motorists in the U.S. dropped to 14.0 percent, according to the Insurance Research Council (IRC). This decline follows a multi-year rise that was largely attributed to the economic impacts of the COVID-19 pandemic. The IRC's report, Uninsured Motorists: 2017—2022, highlights that the percentage of uninsured drivers had been increasing since 2019, reaching 14.2 percent in 2021.

Economic Factors and Legislative Reforms

The report suggests that declining personal income and rising inflation during the pandemic led some drivers to forego purchasing mandatory auto insurance liability coverage. This trend was particularly evident in the first two years of the pandemic. However, legislative reforms in states like Michigan have helped to reverse this trend. Michigan's 2019 legislative reform led to a 6.2 percent decline in uninsured drivers from 2020-2022.

Regional Variations and Costs Imposed

The percentage of uninsured motorists varies significantly across the U.S. In 2022, the District of Columbia, New Mexico, and Mississippi had the highest percentages of uninsured motorists, while Wyoming, Maine, and Idaho had the lowest. Uninsured motorists impose costs on insurers, state governments, and taxpayers, necessitating regulatory measures and taxpayer-funded programs to monitor insurance status.

For readers, it is crucial to stay informed about the economic and legislative factors affecting auto insurance. Regularly reviewing your coverage can help ensure you are adequately protected and compliant with state laws.