Liability insurance is compulsory in 49 states and the District of Columbia. Only New Hampshire does not have a compulsory auto insurance liability law. Even so, the national uninsured motorist rate is estimated to be about 14% and may be as high as 28% in some states, according to the Insurance Research Council.
The actual number is hard to pinpoint. Some studies compare the number of registered vehicles in a state with the number of insurance policies in force. Other studies look at the number of crashes reported or number of insurance claims filed involving an uninsured motorist. According to the Property Casualty Insurers Association of America, uninsured motorists are involved in more than 20% of fatal crashes in the United States.
Some drivers cannot afford insurance or simply do not want to pay for it and are willing to risk getting caught. Penalties for driving uninsured differ from state to state, and can include fines, license suspension or revocation, losing your vehicle registration and license plates, vehicle impoundment, or jail time.
Uninsured/Underinsured Motorist Coverage
Uninsured motorist coverage (UM) pays for your medical expenses if you are injured in a crash caused by an uninsured motorist. This coverage usually includes underinsured motorist coverage (UIM), which protects you if you are hit by a driver who is underinsured. It will help pay for your medical bills and vehicle repair costs that may exceed the at-fault driver's own policy limits.
You also have the option to purchase uninsured motorist property damage coverage (UMPD), which pays for damage to your car. However, many drivers carry collision and comprehensive coverage instead, which pays for damage to your car in this situation, as well as other instances where your car could be damaged, such as a hailstorm or a collision with an animal.
Uninsured motorist coverage is optional in most states, although you may have to sign a waiver saying you choose not to purchase it.
State uninsured motorist laws:
State Auto Insurance Requirements:
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