1 in 7 Drivers May Be Without Auto Insurance Nationwide

Posted in Auto Insurance

January 19th, 2010

A new study shows that 1 in 7 drivers (or 14 percent)may be without auto insurance across the country. Conducted by the Insurance Council, this number is expected to get worse through the year.

Accumulation of Data

The council, whichtrackeddrivers from the period of 2005 to 2007, was able to estimate the uninsured population by using a ratio of insurance claims made by individuals who were injured by uninsured drivers to the claims that were made by those who were injured by insured drivers.

From their numbers, they determined that approximately 1 in 7 drivers are likely to be without insurance. But the numbers from stateto state are higher.

States Across the Country

According to the study, the following states had the worst ratios for the uninsured in 2007 and are likely to have the worst now:

• New Mexico – 29 percent
• Mississippi – 28 percent
• Alabama – 26 percent
• Oklahoma – 24 percent
• Florida – 23 percent

2010 Could be Worse

Thestudy also showed that the problem could get worse as 2010 progresses, the main reason being that many drivers are still struggling financially and simply may not be able to afford auto insurance. According to the study, a 1 percent increase in unemployment usually parallels an uninsured motorist increase of three-quarters of a percentage point.

In other words, as long as unemployment is high, uninsured motorist rates will probably also be high. And with the unemployment rate still sitting at 10 percent, there is a good chance that a high number of drivers will remain without insurance for a chunk of the year.