According to a 2021 study by the Insurance Research Council, approximately 1 in 8 motorists on the road (12.6%) are uninsured. The number of uninsured drivers varies depending on the area of the country. New Jersey, for instance, had the lowest rate of uninsured drivers, with 3.1% of motorists lacking insurance. At the other end of the scale, nearly 30% of Mississippi drivers are on the road without insurance coverage. had the highest percentage, with 29.4% of drivers in Mississippi not carrying insurance. Florida is listed as one of the ten worst states in this regard, with over 20% of our drivers being uninsured. Of course, driving a motor vehicle without insurance is against the law.
Uninsured drivers elevate insurance premiums for everyone. IRC vice president David Corum says, “Uninsured drivers increase the cost of insurance for those who comply with their state’s insurance requirements, and that’s not fair. Keeping auto insurance affordable is more difficult when a significant number of drivers refuse to carry their fair share of the costs.”
When a driver does not obtain an auto insurance policy and gets in an accident, any costs they incur are shifted onto other drivers and insurance companies. Although Florida is a no-fault state, meaning that each driver’s insurance company is responsible for payment of damages and expenses, typically, a motorist can also sue the other insurance company for excess costs. For example, let’s say you are involved in an accident. After your insurance company pays your expenses and you’ve reached your limit, you have no further recourse if the at-fault driver is not insured.
But not all states are no-fault states, meaning that motorists across the country are significantly harmed financially if the at-fault motorist cannot pay for the damage they caused and have no insurance policy to cover those expenses.
Uninsured Motorist Coverage
Some Florida drivers purchase uninsured motorist coverage to protect themselves against uninsured motorists. Twenty states and Washington, D.C. require drivers to have uninsured or underinsured motorist coverage, a further burden on those drivers doing the right thing and following the law. This policy covers the risk of uninsured motorists on the road, costing drivers higher premiums to compensate for uninsured drivers.
The benefits of having uninsured motorist coverage include:
- Peace of Mind: Given the percentages, the chances are pretty good that if you collide with someone on a Florida road, they may be uninsured. Uninsured motorist coverage provides peace of mind that you’ll have the compensation you need should you get in an accident.
- Underinsured Driver Coverage: Uninsured motorist coverage generally includes underinsured motorist coverage as well. Underinsured drivers carry the minimum legal amount of coverage, but this amount is insufficient to cover most accidents’ costs. You do have the right to sue the other driver personally, but this is often a dead-end effort. Drivers who carry zero car insurance or too little insurance usually have little to no assets to seize, making a lawsuit a waste of money. Underinsured motorist coverage can provide the extra money you need after an accident.
- Protect Against Hit and Run Accidents: When a hit and run accident occurs, the other driver is not identified. Insurance companies often treat these situations like an accident with an uninsured motorist. Uninsured motorists actually cause many hit-and-run situations. They flee the scene because they know they will likely face major consequences for being uninsured. Uninsured motorist coverage provides extra protection against hit and run accidents.Contact your insurance company to add uninsured motorist coverage to your policy if you want to protect yourself. Be sure to ask if you are already covered. Although Florida does not require this type of coverage, many policies include it.
Uninsured driving is a complex issue
People drive without obtaining proper insurance coverage for many reasons. The American Association of Motor Vehicle Administrators, says that 82% of uninsured drivers list not being able to afford the coverage as the reason for their noncompliance.
Some states have passed no pay, no play laws to combat the levels of uninsured drivers.
Under this system, motorists without insurance coverage can receive no compensation after an accident, regardless of who was at fault. Some states utilize random driver checks and insurance verification checkpoints to get uninsured drivers off the roads. Oddly enough, a handful of states do not require car insurance to operate a vehicle. However, because the driver is still liable to pay for any damages should they get in an accident, most drivers opt to carry coverage.
If you need help obtaining auto insurance – or need to insure your home or business – call the experts at Anderson & Associates Insurance Group. We are here to help.
