The number of motorists without auto insurance is increasing, particularly in five states.
Almost one in every eight Americans on the road are a part of the current uninsured driver rate, said a new study. This trend is placing insured drivers at an increased financial risk in the case of a collision, said the research.
The research was based on the latest information available regarding auto insurance coverage.
The Hanover Insurance Group co-sponsored the research. The Insurance Research Council (IRC) directed the study. Thirteen percent of all American motorists were uninsured in 2015, said the study. That year was the most recent data available.
It revealed a meaningful increase in the uninsured driver rate since 2010. That year was the previous most recent data year. In 2010, 12.3 percent of drivers in the United States were uninsured.
This trend breaks a span of significant improvements to the uninsured driver rate across the country.
In 2003, the rate of drivers without auto insurance was 14.9 percent. That year through 2010 experienced a steady decline in the number of drivers on the road without coverage. However, that seven year trend appears to have turned in an unwanted direction as a lower proportion of motorists purchase the coverage they need. This is the case even when the car insurance policies are legally required. Forty nine states legally require this coverage.
When uninsured drivers are at fault in collisions, insured drivers and insurance companies are forced to cover property damage and medical costs. The same is said when a driver is underinsured, said the study report This can cause auto insurance companies to have to increase their rates in order to compensate for the higher expenses.
“The results of the survey sound an alarm,” said The Hanover’s president of personal lines, Daniel Halsey. He explained
The state with the highest uninsured driver rate is Florida. There, an astounding 26.7 percent of motorists don’t have a policy, said the IRC. On the other hand, Maine has the highest coverage rate. In Maine, only 4.5 percent of drivers don’t have coverage. The top five states, each of which has an uninsured rate of 20 percent or higher among drivers, were: Florida, Mississippi, New Mexico, Michigan and Tennessee.