The number of uninsured drivers is increasing, which raises the price of auto insurance for everyone else.
Analysts claim that the auto insurance sector is trapped in a never-ending cycle of rising expenses. Costs for auto insurance have increased by 52% in the last three years. An increasing number of drivers are canceling their policies due to rising prices, which in turn raises the cost of insurance for other drivers.
The nonprofit Insurance Research Council reports that as of 2022, the percentage of drivers without insurance increased from 11% in 2019 to 14% in 2022.
A council official stated that preliminary data for 2023 indicates the percentage of uninsured drivers continuing to climb. Additionally, J.D. Power survey data indicates a continued increasing trend in the first half of 2024.
The Surge in Uninsured Motorists Began During COVID
In the 2010s, uninsured motorists were generally on the decline. The trend changed in 2020, when the COVID-19 epidemic struck: Americans drove less, and some elected to abandon their coverage.
In recent years, auto insurance costs have skyrocketed. Prices for both new and used vehicles increased due to supply chain interruptions and other issues. Replacement parts and labor prices climbed. Accidents grew in frequency and severity. Motor vehicle thefts increased.
In 2024, the average cost of full-coverage auto insurance increased by 26% in a single year to $2,543, according to Bankrate, the personal finance site.
Analysts attribute the rise in uninsured drivers to increased premiums.
Can You Legally Drive Without Insurance?
Driving without insurance is illegal in every state except New Hampshire. Uninsured motorists who are caught by police could face fines, as well as legal consequences like as a suspended license and registration.
As of 2022, the District of Columbia had the highest percentage of uninsured drivers of any state at 25.2%. Next on the list are Tennessee (20.9%), Mississippi (22.2%), and New Mexico (24.9%).
According to the most recent data available, insured drivers paid over $16 billion in coverage for underinsured or uninsured drivers in 2020, according to spokesman for the Insurance Information Institute, a nonprofit affiliated with the Insurance Research Council. UM coverage protects an insured motorist from drivers whose insurance is either non-existent or insufficient to cover the costs of an accident. And the expense of that coverage is increasing.
Uninsured/underinsured motorist coverage is extremely valuable, and we strongly recommend that all drivers include it in their insurance policy. In Florida, 15.9% of drivers do not have insurance, according to data from the Insurance Information Institute.
If you are struck by an uninsured driver and your policy includes uninsured motorist coverage, you will be able to make a claim with your own insurance provider. This is extremely advantageous because the possibilities of recovering compensation from an uninsured driver through a personal injury claim are limited.
If you have been involved in a crash in Florida with a driver that has no insurance, or even not enough insurance, our Florida Auto Accident Lawyers at Whittel & Melton can help you understand your options. Call us today at 866-608-5529 or contact us online for a FREE consultation.