Uninsured and underinsured drivers on the rise

Data from the Insurance Research Council indicates that one in three drivers was either uninsured or underinsured in 2023, marking a 10 percentage point increase since 2017. Additionally, nearly one in five accidents involving injuries resulted in losses that exceeded the at-fault driver’s insurance coverage limits.

An uninsured driver lacks auto liability insurance entirely, while an underinsured driver possesses a policy with liability limits insufficient to cover the full cost of damages or injuries caused. Because state-mandated minimums are often significantly lower than the actual costs of serious accidents, motorists may face substantial out-of-pocket expenses even when the at-fault party has insurance.