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Why Uninsured & Underinsured Motorist Coverage Matters

September 24, 2025

Uninsured and Underinsured Drivers are on the Rise

Did you know that one in three drivers on U.S. roads is either uninsured or underinsured? According to a 2025 study by the Insurance Research Council (IRC), 33.4% of drivers in 2023 fell into one of these categories. A 10% increase since 2017. This growing trend has major implications for every driver, including those who maintain proper insurance.

What Does “Uninsured” and “Underinsured” Mean?

  • Uninsured Motorist (UM) Coverage: Protects you if you’re in an accident with a driver who has no liability insurance or in a hit-and-run situation.
  • Underinsured Motorist (UIM) Coverage: Steps in when the at-fault driver’s liability limits are too low to cover your injury or property damage costs.

While liability insurance is legally required in 49 states and the District of Columbia, many drivers still choose to go without. Or they only carry the minimum required coverage, which may not be enough in a serious accident.

Why Are Insurance Rates Rising?

Uninsured drivers create more financial risk for insurance companies. When more drivers don’t carry adequate insurance, insurers face higher costs covering accidents. This added risk leads to higher premiums for all policyholders, even those with clean records.

Here’s how uninsured and underinsured drivers impact everyone:

  1. Increased risk for insurers: Accidents involving uninsured drivers often lead to higher claim payouts.
  2. Higher premiums for insured drivers: Insurers raise rates to offset these costs.
  3. Pressure on UM/UIM coverage: Frequent claims can cause premiums for this coverage to increase.
  4. Penalties for uninsured drivers: Those caught driving without insurance face steep fines and future rates that can skyrocket due to their high-risk status.

State-by-State Trends

The percentage of uninsured drivers varies dramatically by state. Some cited examples include:

  • Highest UM Rates (2023): Mississippi (28.2%), New Mexico (24.1%), and the District of Columbia (23.1%)
  • Lowest UM Rates (2023): Maine (5.7%), Utah (6.2%), and Idaho (6.4%)

Economic conditions, insurance costs, and state regulations all play a role. While some states saw slight declines in uninsured motorist rates after the pandemic, most states experienced increases.

How Can You Protect Yourself?

Even the best drivers can be involved in an accident with someone who doesn’t have enough insurance. Here’s how to reduce your risk:

  • Make sure you have UM/UIM coverage: These coverages are often optional but provide critical protection.
  • Consider an umbrella policy: This adds extra liability protection above your auto policy limits. Confirm if uninsured motorists are included.
  • Ask your agent about discounts: There may be opportunities to lower your overall premium without sacrificing protection.
  • Drive defensively: Staying alert and minimizing distractions reduces the chance of needing to file a claim in the first place.

Final Thoughts

Auto insurance isn’t just a legal requirement, it is a safety net for you, your passengers, and others on the road. With uninsured and underinsured motorist rates on the rise, it’s more important than ever to review your policy and ensure you’re fully protected.

If you’re unsure whether your current coverage is enough, reach out to your Robertson Ryan Insurance Agent for a policy review. Small adjustments today can make a big difference in the event of an accident.

*Please note that we rely on independent sources, and recommend conducting further research or to seek guidance from a qualified industry professional, legal counsel, or licensed insurance.