Triple-I Weblog | Uninsured Driving Dipped in 2022 After Pandemic Spurred a Multi-year Rise

By Max Dorfman, Analysis Author, Triple-I

About one out of seven U.S. drivers (14.0 %) operated a private-passenger automobile with out legal responsibility insurance coverage in 2022, based on new analysis by the Insurance coverage Analysis Council (IRC) – like Triple-I, an affiliate of The Institutes.

The IRC report, Uninsured Motorists: 2017—2022, which used information from 10 insurers representing round 56 % of the U.S. non-public passenger auto insurance coverage market, discovered that the proportion of uninsured motorists been rising over the previous few years. Certainly, the proportion of uninsured motorists was 11.1 % in 2019, elevated to 13.9 % in 2020, and stood at 14.2 % in 2021, earlier than the slight decline in 2022.

The report posits that declining private earnings and rising inflation – notably in the course of the first two years of the coronavirus pandemic – led some motorists to forgo buying obligatory auto insurance coverage legal responsibility protection. This shift was notably obvious in the course of the first two years of the coronavirus pandemic.  In reality, earlier than the pandemic, the variety of uninsured U.S. drivers was largely declining, with 40 jurisdictions experiencing decreases from 2017-2019. The most important lower was in Montana, the place the proportion of uninsured drivers on its roadways fell by 4.1 % in the course of the three-year timeframe.

This, nevertheless, was not uniform throughout the nation. The most important share will increase throughout the identical interval have been seen in Florida and Michigan. Michigan’s 2019 legislative reform significantly helped alleviate the scenario; the state skilled a 6.2 % decline from 2020-2022.

In 2022, the District of Columbia (25.2 %), New Mexico (24.9 %), and Mississippi (22.2 %) had the very best percentages of uninsured motorists in 2022. Wyoming (5.9 %), Maine (6.2 %), and Idaho (6.2 %) have been the three states with the bottom share.

Uninsured motorists impose prices for insurers, state governments, and taxpayers. Auto insurers are required by regulation to underwrite uninsured and underinsured driver protection and course of these claims, in addition to complying with rules in lots of states requiring insurers to tell the state when auto insurance coverage protection is canceled. State governments additionally administer taxpayer-funded applications that monitor the insurance coverage standing of motor automobiles registered within the state.