Millions Without Auto Insurance: Who And Why?

In the US, car insurance is required in almost every state, but millions of Americans still drive without it. In 2022, 14% of motorists, or about one in seven drivers, were uninsured, according to a 2023 study by the Insurance Research Council (IRC). This equates to roughly 28 million uninsured drivers in the US.

Uninsured motorist statistics for 2024

While 2024 statistics are not yet available, data from 2023 and earlier can provide an estimate of the number of uninsured motorists in 2024.

Number of Uninsured Motorists

According to the Insurance Research Council (IRC), around 28 million motorists, or about one in eight drivers, drove without insurance in 2019. The national rate of uninsured drivers reached a nine-year high of 13.1% in 2017, with 12.6% of drivers uninsured in 2019.

State-by-State Breakdown

The percentage of uninsured motorists varies by state. In 2019, Mississippi had the highest rate of uninsured drivers at 29.4%, while New Jersey had the lowest at 3.1%. From 2015 to 2019, some states saw decreases in their rates of uninsured drivers, while others experienced increases. For example, Michigan and Delaware's rates decreased, while Washington, Rhode Island, and Mississippi saw increases of nearly 7%.

Cost Implications

The high number of uninsured motorists can have cost implications for insured drivers and their insurance providers. In 2016, uninsured/underinsured motorist coverage cost insured drivers more than $13 billion in paid premiums, or about $78 per insured vehicle.

Reasons for Lack of Insurance

Money is a primary motivator for why people drive without insurance. While cheap car insurance options exist, some drivers cannot afford even the most basic policies. Additionally, 82% of uninsured drivers have inoperable or unused vehicles, according to the American Association of Motor Vehicle Administrators (AAMVA).

Protecting Yourself from Uninsured Motorists

To protect yourself financially from collisions with uninsured drivers, insurance experts recommend adding uninsured motorist coverage to your policy. This coverage is already mandatory in some states and can provide financial peace of mind in the event of an accident with an uninsured driver.

Looking Ahead to 2024

While the most recent data is from 2023 and 2022, it is likely that the number of uninsured motorists in 2024 will remain relatively consistent with previous years, with approximately one in eight drivers on US roads lacking insurance coverage.

States with the most uninsured drivers

While car insurance is required in nearly every state, there are still millions of Americans who drive without it. In 2019, about one in eight drivers, or 12.6%, was uninsured. This figure rose slightly to 13% in 2023. The number of uninsured motorists varies by state, with Mississippi having the highest percentage of uninsured drivers at 29% or 29.4% according to different sources. In New Jersey, only 3% or 3.1% of drivers are uninsured, the lowest in the country.

• Mississippi (29% or 29.4%)
• Michigan (25.5%)
• Tennessee (23.7%)
• New Mexico (21.8%)
• Washington (21.7%)
• District of Columbia (19.1%)
• Florida (20%)
• Idaho (16%)
• Michigan (15%)
• New Hampshire (14%)

The states with the lowest percentage of uninsured drivers include:

• New Jersey (3% or 3.1%)
• Massachusetts (3.5%)
• New York (4.1%)
• Wyoming (5.8%)
• North Carolina
• Oklahoma
• Texas

States with the fewest uninsured drivers

While car insurance is required in nearly every state, there are still millions of Americans who drive without it. In 2019, about one in eight drivers, or 12.6%, was uninsured. This figure rose slightly to 13% in 2023. The number of uninsured motorists varies by state, with Mississippi having the highest percentage of uninsured drivers at 29.4% and New Jersey having the lowest at 3.1%.

New Jersey

With an uninsured motorist rate of just 3.1%, New Jersey has the lowest rate of uninsured drivers in the country. This is likely due to a combination of low insurance prices caused by increased competition and major insurance reforms enacted in 2003. New Jersey also has very low bodily injury liability insurance requirements: only $15,000 per person and $30,000 per accident.

Massachusetts

Massachusetts has the second-lowest rate of uninsured drivers, with only 3.5% of drivers in the state uninsured.

New York

New York has a relatively low rate of uninsured motorists, with only 4.1% of drivers in the state lacking insurance coverage.

Wyoming

Wyoming has a slightly higher rate of uninsured motorists than the previous three states, with 5.8% of drivers uninsured.

Other States with Low Uninsured Motorist Rates

Other states with relatively low rates of uninsured drivers include Maine, North Carolina, Oklahoma, and Texas. It's worth noting that these states have seen a decrease in uninsured motorists over the years, with Texas implementing an online insurance verification system to help identify uninsured drivers.

Penalties for driving without insurance

Driving without insurance is considered a serious moving violation and can result in a variety of fines, fees, possible jail time, and more expensive insurance premiums. The specific penalties vary from state to state, but here are some common consequences:

• Fines: The amount of the fine for driving without insurance can range from $50 to $500 for the first offense, with higher fines for subsequent offenses.
• License suspension: In most states, your driver's license will be suspended until you provide proof of insurance and pay a reinstatement fee, which can range from $50 to $500.
• Registration suspension: Your vehicle registration may also be suspended, and you may need to pay a separate reinstatement fee.
• Impoundment: In some states, your car may be impounded if you are caught driving without insurance.
• Increased insurance rates: If you apply for insurance after a coverage lapse, you will likely face higher insurance costs. You may need to purchase a policy from a specialist insurer for high-risk drivers, which can be more costly.
• SR-22 or FR-44 form: You may be required to file an SR-22 or FR-44 form to prove that you have the minimum required insurance coverage before your license and registration can be reinstated.
• Jail time: While it is uncommon for a first offense, some states do impose jail time for driving without insurance, especially if there are aggravating factors such as an accident or driving under the influence.

It is important to note that the consequences of driving without insurance can be more severe if you are involved in an accident. You will be held financially responsible for any damages or injuries caused, and you may face lawsuits, court costs, and wage garnishments. Therefore, it is always best to fulfill your state's minimum liability insurance requirement to drive legally and avoid these penalties.

Examples of state-specific penalties

• California: In California, you could face a license suspension of up to four years, even if the accident was not your fault. You may be able to get your license back after one year by providing proof of insurance and paying a reinstatement fee.
• Florida: In Florida, the penalties include fines of up to $500 for subsequent offenses within three years, license suspension until reinstatement fee and proof of insurance are provided, and possible SR-22 or FR-44 form requirements.
• Alaska: First-time offenders in Alaska can be sentenced to 90 days in jail if they are involved in an accident while driving without insurance.
• Georgia: In Georgia, a first offense of driving without insurance can result in a year of jail time.

State policies to reduce uninsured drivers

As of 2023, there are around 28 to 29 million uninsured drivers in the US, which equates to about one in seven or eight drivers. This poses a significant risk to other motorists. While auto insurance is required in most states, some drivers choose to forgo it, which can be costly for both themselves and other drivers in the event of an accident.

To tackle this issue, states are implementing various policies to reduce the number of uninsured motorists. Here are some strategies that states are employing:

"No pay, no play" laws

Some states have adopted "no pay, no play" laws, which limit the amount of compensation that uninsured drivers can receive if they are involved in an accident caused by another driver. While these laws don't restrict uninsured drivers from seeking economic damages such as medical bills or vehicle repairs, they typically prevent them from suing for non-economic damages like pain and suffering. The intention is to incentivize drivers to obtain insurance coverage. However, it's worth noting that states with these laws tend to have slightly higher rates of uninsured drivers.

Insurance verification systems

Several states have implemented online insurance verification systems to identify uninsured motorists. In these states, insurance companies are required to notify the DMV or state transportation office when a policy lapses or is cancelled. This enables law enforcement to keep track of uninsured drivers on the road.

Mandatory uninsured motorist coverage

Nearly half of the US states require drivers to have uninsured and underinsured motorist coverage. This type of coverage ensures that the insurance company will cover the policyholder's car repairs and medical bills if they are hit by an uninsured or underinsured driver. There are two forms of this coverage: Uninsured Motorist Bodily Injury (UMBI) and Uninsured Motorist Property Damage (UMPD). While UMBI is typically mandatory in states that require this coverage, UMPD is only mandatory in some states.

Stricter penalties for driving without insurance

Driving without insurance can result in various penalties, including fines, license suspension, vehicle impoundment, and even jail time. These penalties vary across states, but they serve as a deterrent for those considering driving without insurance.

Addressing affordability

In some cases, the high cost of auto insurance may be a barrier for some drivers. To address this, states can work on making insurance more affordable, especially for low-income individuals. Additionally, states can provide incentives or subsidies to help reduce the financial burden of purchasing insurance.

Public awareness campaigns

Educating the public about the importance of auto insurance and the risks of driving without it can also help reduce the number of uninsured motorists. States can launch awareness campaigns to inform drivers about the legal and financial consequences of driving without insurance, as well as the benefits of being properly insured.

Frequently asked questions