Every time you get behind the wheel, you assume every driver around you has at least the basic insurance required by law. But that assumption isn’t always correct. Many drivers operate with no coverage or too little coverage. When those drivers cause an accident, the ripple effects can impact you, your policy, and your financial security.
At Sun Coast General Insurance, we believe that being aware of the full risk of uninsured driving is just as important as having the right policy. Below is a deeper look into why uninsured and underinsured driving is a problem — and how you can protect yourself and your community.
1. The Scope of the Problem: How Many Drivers Are Uncovered?
It isn’t just a few isolated cases — the statistics show a widespread issue:
- A recent report by the Insurance Research Council (IRC) found that 15.4% of U.S. drivers were uninsured in 2023.(Source)
- When you include drivers who did have insurance but not enough to cover damages (underinsured), the combined rate of uninsured + underinsured climbs to about 33.4%. (Source)
- The range varies widely by state: in 2023, uninsured driver rates ranged from as low as 5.7% in Maine to 28.2% in Mississippi. (Source)
This means that even well-insured drivers face risks caused by others who may not be properly covered.
2. Why Drivers Go Without Enough Coverage
There are several common reasons why drivers remain uninsured or underinsured:
- Affordability issues: Some types of insurance premiums have risen significantly, and many drivers simply drop coverage because they believe they can’t afford it.
- High-risk driving history: Drivers with accidents or violations may face steep premiums and may give up coverage.
- Minimal requirement mentality: Some drivers carry only the legally-required minimum limits — which may not be sufficient if a serious accident happens.
- Misunderstanding “coverage”: Many assume they are fully covered, but may lack uninsured-motorist protection or have low limits.
By understanding the why, you’re better positioned to see how the issue affects everyone on the road.
3. Why Uninsured & Underinsured Drivers Raise Costs for All
It’s not just about the individual without coverage — the system as a whole feels the impact:
When an uninsured driver causes an accident, the financial burden often shifts to:
- The insured driver who was hit
- Their insurance provider
- Other policyholders (through higher premiums)
The IRC reports that the underinsured motorist (UIM) problem is growing — rising severity of injury claims and costs push the limits of many policies. (Source)
Because of these dynamics, insurers may factor increased risk from this group into rates — which means you could indirectly pay more because of someone else’s lack of coverage.
4. Why Uninsured/Underinsured Coverage (UM/UIM) Matters
When you’re hit by someone without insurance or with inadequate coverage, it can leave you with major exposure if you don’t have the right protection.
- Uninsured Motorist (UM) coverage helps when the at-fault driver has no liability insurance.
- Underinsured Motorist (UIM) coverage helps when the at-fault driver has insurance but not enough to fully cover the damages.
- Some policies also include Uninsured Motorist Property Damage (UMPD), which may help repair your vehicle if you’re hit by an uninsured driver.
Having appropriate UM/UIM limits can significantly reduce your financial risk.
5. How Much UM/UIM Coverage Should You Consider?
Choosing the right amount of UM/UIM coverage is a key aspect of protection:
- A good rule of thumb: match or exceed your bodily injury liability limits. If you can cause $50,000 in injury liability, your UM/UIM should at least match that.
- Some states let you choose lower limits, but that may expose you to out-of-pocket risk if an at-fault driver’s damages exceed minimum limits.
- At Sun Coast, we recommend reviewing your entire policy annually — especially if you’ve made changes (new vehicle, teen driver, moved ZIP code) — to ensure your UM/UIM limits remain adequate.
6. Steps You Can Take Right Now
To protect yourself and strengthen the overall safety of the road, here are practical steps:
- Confirm active coverage: Make sure your own policy has never lapsed. Gap in insurance increases your risk profile.
- Request UM/UIM limits: Ask your Sun Coast agent what your current uninsured/underinsured limits are — and whether they’re sufficient given your vehicle, lifestyle, and state.
- Encourage safe practices around you: Having friends/family who are insured too strengthens your shared risk pool.
- Drive defensively: No amount of insurance replaces careful driving. Stay aware, avoid distractions, obey speed limits, and assume others might be uninsured.
- Review and update your policy regularly: Major life events (new car, move, addition of teens) can require changes to your coverage.
