Uninsured Drivers: A Dangerous Reality

Driving without insurance is illegal and can have serious repercussions. However, the number of uninsured drivers on the road is surprisingly high. In 2019, the Insurance Research Council (IRC) estimated that around 12-14% of drivers in the US, or about one in eight drivers, were uninsured. This equates to roughly 28-32 million people driving without insurance. The percentage of uninsured drivers varies by state, with Mississippi having the highest rate at 29-29.4% and New Jersey the lowest at 3-3.1%. The high number of uninsured motorists can have financial implications for insured drivers, with uninsured motorist coverage costing insured drivers about $13 billion in the US in 2016.

Percentage of uninsured motorists by state

In 2019, around 12.5% to 13% of US drivers, or about one in eight, were uninsured. This figure has changed little in recent years, fluctuating by a maximum of 1.2% between 2015 and 2019. However, the percentage of uninsured motorists varies by state, from 3% to 29%.

States with the Most Uninsured Motorists

• Mississippi: 29.4%
• Michigan: 25.5%
• Tennessee: 23.7%
• New Mexico: 21.8%
• Washington: 21.7%
• District of Columbia: 19.1%

States with the Fewest Uninsured Motorists

• New Jersey: 3.1%
• Massachusetts: 3.5%
• New York: 4.1%
• Wyoming: 5.8%
• New Hampshire: 6.1%

Penalties for driving without insurance

Driving without insurance can result in a range of penalties, including fines, jail time, and losing your driving privileges. The penalties vary depending on the state and the number of offences. Here are the consequences of driving without insurance:

Fines

If you are caught driving without insurance, you may have to pay a fine. The amount of the fine can vary from a few hundred to a thousand dollars. In Georgia, for example, the fine for a first offence is $200, while for subsequent offences, it can go up to $1,000.

Jail time

In some cases, driving without insurance can result in jail time. The length of jail time can be up to one year, depending on the state and the number of offences. In Georgia, for instance, each offence may result in up to 12 months in jail.

Suspension of driving privileges

If you are caught driving without insurance, your driver's license and registration may be suspended. The length of the suspension varies depending on the state and the number of offences. In Georgia, for a first offence, the license and registration are suspended for 60 days, while for a second offence, the suspension is for 90 days.

Other consequences

Driving without insurance can also lead to other consequences, such as having your vehicle impounded, an increase in your insurance premiums, and difficulty in obtaining insurance in the future. Additionally, if you are in an accident while uninsured, you may be sued for damages and medical bills.

State policies to deal with uninsured motorists

As mentioned previously, about 13% of people on the road are uninsured, which equates to roughly 28-32 million uninsured drivers in the US. This is a huge risk to other motorists. While car insurance is required in nearly every state, laws in most states have proven ineffective in reducing the number of uninsured drivers. This is due to a variety of factors, including the high cost of insurance and the fact that it is costly to track down violators of compulsory insurance laws.

To tackle this issue, states are implementing various policies and techniques to reduce the number of uninsured motorists and protect other drivers. Here are some of the key approaches:

• Insurance Verification Systems: More than half of the states have passed laws and developed online insurance verification systems to identify uninsured motorists quickly. Insurance companies are required to notify the DMV or state transportation office when a policy lapses or is canceled. This aids law enforcement in identifying uninsured drivers.
• "No Pay, No Play" Laws: About a dozen states have enacted these laws, which restrict uninsured drivers from suing for non-economic damages like pain and suffering. While these laws don't limit their ability to sue for economic damages like medical bills, they aim to encourage uninsured drivers to get insured. However, states with these laws have slightly higher rates of uninsured drivers.
• Random Selection Programs: Some states use random selection to verify insurance coverage. Insurers are given lists of randomly selected auto registrations and are asked to match them with insurance policies.
• Uninsured Motorist Coverage: While this doesn't reduce the number of uninsured motorists, it provides financial protection for insured drivers involved in accidents with uninsured or hit-and-run drivers. This coverage includes Uninsured Motorist Bodily Injury (UMBI) and Uninsured Motorist Property Damage (UMPD) protection. Nearly half of the US states require this coverage, and it is mandatory in the District of Columbia.
• Low-Cost Auto Policies: Some states, like New Jersey and California, offer low-cost auto insurance policies for drivers with low incomes. These policies provide essential coverage at affordable prices, making insurance more accessible.
• Online Verification (OLV) Systems: To address the limitations of database systems, the Insurance Industry Committee on Motor Vehicle Administration (IICMVA) has proposed a single online verification system. This system would allow real-time access to insurer data, enabling instantaneous insurance verification during vehicle registration or traffic stops.

States with the most uninsured drivers

While car insurance is required in nearly every state, a significant number of drivers across the US are uninsured. In 2019, around 12.6% of motorists, or about one in eight drivers, were uninsured, according to the Insurance Research Council (IRC). This figure rose to 14% in 2022. The percentage of uninsured drivers varies by state, with some states having notably higher uninsured motorist rates than others.

• Mississippi: With an uninsured motorist rate of 29.4%, Mississippi has the highest percentage of uninsured drivers in the country. This is nearly ten times higher than the rate in the state with the fewest uninsured drivers, New Jersey. Mississippi is one of the cheapest states for car insurance, but it also has the lowest household income, which may explain why many drivers do not purchase insurance.
• Michigan: Michigan has the second-highest rate of uninsured drivers at 25.5%. Michigan also has the highest insurance premiums in the country, which may be a contributing factor to the high number of uninsured motorists.
• Tennessee: Tennessee has the third-highest rate of uninsured drivers, with 23.7% of motorists driving without insurance.
• New Mexico: Around 21.8% of drivers in New Mexico are uninsured, making it the fourth-highest state for uninsured motorists.
• Washington: Washington has a similar uninsured motorist rate to New Mexico, with 21.7% of drivers in the state being uninsured.
• District of Columbia: The District of Columbia has an uninsured motorist rate of 19.1%, which is higher than many states.

States with the fewest uninsured motorists

While car insurance is required in nearly every state, there are still around 29 million uninsured drivers in the US. This equates to about 13% of people on the road, or one out of every eight drivers. The percentage of uninsured motorists varies across the country, with some states having notably fewer uninsured drivers than others.

New Jersey has the fewest uninsured motorists in the country, with only 3% of drivers lacking insurance. This is about a quarter of the national average. New Jersey has very low bodily injury liability insurance requirements: just $15,000 per person and $30,000 per accident. It is one of 24 states (including the District of Columbia) that require drivers to have uninsured motorist insurance.

New Jersey has seen a significant decrease in uninsured motorists over the years. In 2019, the uninsured motorist rate in the state was 3.1%, down from 3.2% in 2018 and 3.3% in 2017. The state with the next lowest rate of uninsured motorists is Massachusetts, with an uninsured rate of 3.5%. New York follows closely behind, with 4.1% of drivers uninsured.

The high rate of insurance in New Jersey may be due in part to the state's "no pay, no play" laws, which limit how much uninsured drivers can collect if they are in an accident with another driver. These laws also restrict uninsured drivers from suing for pain and suffering, or noneconomic damages. While these laws don't limit the ability to sue for economic damages like medical bills or vehicle repairs, they may encourage more drivers to purchase insurance.

Frequently asked questions