Uninsured Motorists
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UNINSURED MOTORISTS
Uninsured and underinsured motorist coverage reimburses policyholders in an accident involving an uninsured, underinsured or hit-and-run driver. Twenty-one states and the District of Columbia have mandatory requirements for uninsured or underinsured motorist coverage. A handful of states, including Texas and Utah, have passed laws and begun to develop and implement online auto insurance verification systems to identify uninsured motorists.
The Insurance Research Council (IRC) estimated the percent of uninsured motorists using a ratio of insurance claims made by individuals who were injured by uninsured drivers to claims made by individuals who were injured by insured drivers. Its research also found that an increase in the unemployment rate of one percentage point is associated with an increase in the uninsured motorist rate of more than three-quarters of a percentage point. Based on recent past unemployment rates and current unemployment rate projections, the IRC projects that the national average percentage of uninsured motorists decreased, from 14.9 percent in 2003 to 13.8 percent in 2007 and could rise to 16.1 percent in 2010. The IRC found substantial variation among the states.
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UNINSURED MOTORISTS, 1989-2007 (1)
Year |
Percent |
| 1989 | 16.3% |
| 1990 | 15.4 |
| 1991 | 15.1 |
| 1992 | 15.6 |
| 1993 | 16.0 |
| 1994 | 15.1 |
| 1995 | 14.2 |
| 1996 | 13.8 |
| 1997 | 13.2 |
| 1998 | 13.0 |
| 1999 | 12.7 |
| 2000 | 13.4 |
| 2001 | 14.2 |
| 2002 | 14.5 |
| 2003 | 14.9 |
| 2004 | 14.6 |
| 2005 | 14.5 |
| 2006 | 14.3 |
| 2007 | 13.8 |
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(1) Percentage of uninsured drivers, as measured by the ratio of uninsured motorists (UM) claims to bodily injury (BI) claims frequencies.
Source: Insurance Research Council. |
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ESTIMATED PERCENTAGE OF UNINSURED MOTORISTS BY STATE, 2007 (1)
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AUTOMOBILE FINANCIAL RESPONSIBILITY LIMITS AND ENFORCEMENT BY STATE
As of May 2009
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Proof of insurance required (1) |
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State |
Insurance required (2) |
Minimum liability limits (3) |
At registration |
At time of accident |
At all times in vehicle |
Insurer verification of insurance (4) |
| AL | BI & PD Liab | 25/50/25 | Yes | Yes | Yes | c |
| AK | BI & PD Liab | 50/100/25 | No | No (5) | Yes | b |
| AZ | BI & PD Liab | 15/30/10 | No (6) | Yes | Yes | a,b |
| AR | BI & PD Liab, PIP | 25/50/25 | Yes | No | No | b,d |
| CA | BI & PD Liab | 15/30/5 (7) | Yes | Yes | Yes | a,b,d |
| CO | BI & PD Liab | 25/50/15 | Yes | Yes | Yes | a,d |
| CT | BI & PD Liab, UM, UIM | 20/40/10 | Yes | Yes | Yes | a |
| DE | BI & PD Liab, PIP | 15/30/10 | No | Yes | Yes | a,b,c,d |
| DC | BI & PD Liab, UM | 25/50/10 | Yes | Yes | Yes | a,c |
| FL | PD Liab, PIP | 10/20/10 (8) | Yes | Yes | Yes | a,d |
| GA | BI & PD Liab | 25/50/25 | Yes | Yes | Yes | a,d |
| HI | BI & PD Liab, PIP | 20/40/10 | No | Yes | Yes | a |
| ID | BI & PD Liab | 25/50/15 | No | Yes | Yes | none |
| IL | BI & PD Liab, UM | 20/40/15 | Yes | Yes | Yes | b,c |
| IN | BI & PD Liab | 25/50/10 | Yes | Yes | No | a |
| IA | BI & PD Liab | 20/40/15 | No | Yes | Yes | a |
| KS | BI & PD Liab, PIP, UM | 25/50/10 | Yes | No | No | a,c |
| KY | BI & PD Liab, PIP | 25/50/10 | Yes | Yes | Yes | a,d |
| LA | BI & PD Liab | 10/20/10* | Yes | No (5) | Yes | a,d |
| ME | BI & PD Liab, UM, UIM | 50/100/25 (9) | No | Yes | Yes | a,b |
| MD | BI & PD Liab, PIP (10), UM | 20/40/15 | Yes | No | No | a |
| MA | BI & PD Liab, PIP, UM | 20/40/5 | Yes | No | No | a,d |
| MI | BI & PD Liab, PIP | 20/40/10 | Yes | No | No | a |
| MN | BI & PD Liab, PIP, UM, UIM | 30/60/10 | No | Yes | Yes | a,c |
| MS | BI & PD Liab | 25/50/25 | No | Yes | Yes | a |
| MO | BI & PD Liab, UM | 25/50/10 | Yes | Yes | Yes | a,d |
| MT | BI & PD Liab | 25/50/10 | No | Yes | Yes | a |
| NE | BI & PD Liab | 25/50/25 | Yes | Yes | Yes | d |
| NV | BI & PD Liab | 15/30/10 | No | Yes | Yes | a,d |
| NH | FR only, UM | 25/50/25 | No | No (5) | No | None |
| NJ | BI & PD Liab, PIP, UM | 15/30/5 (11) | No | Yes | Yes | a,d |
| NM | BI & PD Liab | 25/50/10 | Yes | Yes | Yes | a,c,d |
| NY | BI & PD Liab, PIP, UM | 25/50/10 (12) | Yes | Yes | Yes | a,d |
| NC | BI & PD Liab, UM, UIM | 30/60/25 | No | No | No | a,d |
| ND | BI & PD Liab, PIP, UM | 25/50/25 | No | No (5) | No | c |
| OH | BI & PD Liab | 12.5/25/7.5 | No | Yes | Yes | a,c |
| OK | BI & PD Liab | 25/50/25 | Yes | Yes | Yes | a,c,d |
| OR | BI & PD Liab, PIP, UM | 25/50/10 | No | Yes | Yes | a,c |
| PA | BI & PD Liab, PIP | 15/30/5 | No | Yes | Yes | a |
| RI | BI & PD Liab, UM | 25/50/25 (8) | No | No | No | c |
| SC | BI & PD Liab, UM | 25/50/25 | Yes | Yes | Yes | a,d |
| SD | BI & PD Liab, UM | 25/50/25 | No | Yes | Yes | a |
| TN | BI & PD Liab | 25/50/15 (8) | No | No | Yes | a |
| TX | BI & PD Liab | 25/50/25** | Yes | Yes | No | a,b,d |
| UT | BI & PD Liab, PIP | 25/65/15 (8) | No | Yes | Yes | d |
| VT | BI & PD Liab, UM, UIM | 25/50/10 | No | Yes | Yes | c |
| VA | BI & PD Liab, UM | 25/50/20 | No | No | No | a,b,c,d |
| WA | BI & PD Liab | 25/50/10 | No | No | No | a |
| WV | BI & PD Liab, UM | 20/40/10 | Yes | Yes | Yes | a |
| WI | FR only, UM | 25/50/10 | No | No | No | a |
| WY | BI & PD Liab | 25/50/20 | Yes | Yes | Yes | c,d |
(1) Physical proof of valid insurance. The form of evidence varies by state and may take the form of an insurance policy, binder, certificate of self-insurance, surety bonds or certificate of deposit. Many states require insurance identification cards issued by the insurer. "No" in the "At Registration" column indicates that no physical proof of insurance is required, or that the state only requires the driver to identify the insurer and/or policy number on an application (i. e., "self-certification"). "Yes" in the "At all times" column indicates states where drivers must produce proof on demand.
(2) Compulsory Coverages:
BI Liab=Bodily injury liability
PD Liab=Property damage liability
UM=Uninsured motorist
PD=Physical damage
Med=First party (policyholder) medical expenses
UIM=Underinsured motorist
PIP=Personal Injury Protection. Mandatory in no-fault states. Includes medical, rehabilitation, loss of earnings and funeral expenses. In some states PIP includes essential services such as child care.
FR=Financial responsibility only. Insurance not compulsory.
(3) The first two numbers refer to bodily injury liability limits and the third number to property liability. For example, 20/40/10 means coverage up to $40,000 for all persons injured in an accident, subject to a limit of $20,000 for one individual, and $10,000 coverage for property damage.
(4) a. Insurer must notify Department of Motor Vehicles or other state agency of cancellation or nonrenewal.
b. Insurer must verify financial responsibility or insurance after an accident or arrest.
c. Insurer must verify randomly selected insurance policies upon request.
d. Insurers must submit entire list of insurance in effect, which may be compared with registrations at a state agency. Also known as a computer data law.
Also includes cases where insurers are required to report new issues and/or renewals.
(5) Insured must provide evidence of insurance at some point after the accident to the Department of Insurance, other state agency, or law enforcement officer. Deadlines vary among the states.
(6) Proof of insurance must be presented within 30 days of registration.
(7) Low-cost policy limits for low-income drivers in the California Automobile Assigned Risk Plan are 10/20/3.
(8) Instead of policy limits, policyholders can satisfy the requirement with a combined single limit policy. Amounts vary by state.
(9) In addition, policyholders must also carry at least $1,000 for medical payments.
(10) May be waived for the policyholder but is compulsory for passengers.
(11) Basic policy (optional) limits are 10/10/5. Uninsured and underinsured motorist coverge not available under the basic policy but uninsured motorist coverage is required under the standard policy.
(12) In addition, policyholders must have 50/100 for wrongful death coverage.
*Minimum coverage requirements will increase to 15/30/25 on January 1, 2010.
**Minimum coverage requirements will increase to 30/60/25 on January 1, 2011.
Source: Property Casualty Insurers Association of America; American Insurance Association, state departments of insurance and motor vehicles.
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