14% of U.S. Drivers Lack Auto Insurance, Raise Costs for All

A recent report reveals that 14% of U.S. drivers are uninsured, marking a rise from 11% in 2019. This increase translates to approximately 1 in 7 drivers operating without auto insurance, raising costs for insured motorists as they bear the financial burden of accidents involving uninsured individuals. Insurers faced a collective payment of $16 billion for uninsured and underinsured motorist coverage, showcasing the impact on premiums for all drivers.

The growing number of uninsured drivers forces insurance companies to raise premiums to cover potential claims, despite many states requiring uninsured motorist coverage. Mercury Insurance highlights the need for drivers to consider protective measures, such as uninsured/underinsured motorist coverage and umbrella policies, to mitigate risks. They emphasize that not only is auto insurance a legal requirement but also a crucial safety net for all motorists, suggesting ways to manage coverage costs, including discounts and safe driving practices.