The High Cost of Uninsured Drivers: A Deep Dive into the $13 Billion Problem

The Growing Problem of Uninsured Drivers

One in eight drivers on U.S. roads was without auto insurance in 2019, according to a report released by the Insurance Research Council (IRC). This issue not only raises insurance costs for everyone else but also poses a significant risk to road safety. The IRC report, Uninsured Motorists, 2021 Edition, highlights that insured drivers paid more than $13 billion in 2016, or about $78 per insured vehicle, for protection against at-fault drivers who have inadequate coverage for medical costs and property damage they inflict on others.

State Variations and Recent Trends

While the uninsured motorist rate was 12.6 percent nationwide in 2019, these rates varied substantially across states, ranging from 3.1 percent in New Jersey to 29.4 percent in Mississippi. Although the uninsured motorist rate increased only 1.2 percentage points nationwide from 2015-2019, several states experienced more significant increases, including Washington (6.9 percentage points), Rhode Island (6.8 percentage points) and Mississippi (6.4 percentage points). Other states experienced decreases in uninsured motorist rates, including Michigan (10.1 percentage points) and Delaware (2.9 percentage points).

Impact on Insurance Costs and Practical Advice

The IRC report emphasizes that keeping auto insurance affordable is more difficult when a significant number of drivers refuse to carry their fair share of the costs. David Corum, vice president of the IRC, stated, "Keeping auto insurance affordable is more difficult when a significant number of drivers refuse to carry their fair share of the costs." For more information on the study’s methodology and findings, contact David Corum at (484) 831-9046, or by e-mail at [email protected]. For more information about the report, visit the IRC’s Web site at www.insurance-research.org.

To mitigate the impact of uninsured drivers, it is crucial for insured drivers to ensure they have adequate coverage, including uninsured/underinsured motorist coverage. Additionally, staying informed about state laws and insurance requirements can help drivers make better decisions and protect themselves on the road.