Report Reveals Uninsured Motorists Still a Persistent Problem - BodyShop Business

Report Reveals Uninsured Motorists Still a Persistent Problem

The number of uninsured motorists has decreased in the past decade, but there are still roughly 30 million - or one in eight drivers.

A recent report shows that while the number of uninsured motorists on the road has decreased in the past decade, the cost of being uninsured has sharply risen.

The report, titled "Uninsured Motorists, 2014 Edition," shows that the percentage of uninsured U.S. motorists fell to 12.6 percent in 2012 from nearly 15 percent nine years earlier. However, the report estimates that $2.6 billion was paid to cover uninsured motorist claims in 2012 – a 75 percent increase over the 2003-2012 period studied. That number, according to the report, only accounts for bodily injury payments and not property damage. There are roughly 30 million uninsured motorists in the U.S. – a number that represents roughly one in eight drivers.

The report doesn’t offer a clear reason for these numbers; however, the economy seems to be at play. Researchers noted that, leading up to the most recent recession, a 1 percent increase in the nation’s unemployment rate correlated with a .5 percent increase in the number of insured motorists. Yet during the recession, the ratio of uninsured motorists to bodily injury claims slightly decreased.

In addition, the report shows that some states with higher unemployment rates have higher ratios of uninsured motorists to bodily injury claim frequency. These states include Oklahoma, Mississippi, Florida, New Mexico, Michigan and Tennessee. Also, some of the most populated states have higher numbers of uninsured motorists, including:

• California (4.1 million)
• Florida (3.2 million)
• Texas (1.6 million)
• Ohio (1.3 million)
• Tennessee (1.2 million)

“Motorists who forgo purchasing insurance create a problem that is of great concern to auto insurance policyholders, insurers, regulators and the general public,” the report states. “In addition to paying for insurance that covers their own actions, insured drivers pay a portion of the costs incurred by drivers without insurance through uninsured motorist (UM) coverage. For insurers, costs associated with UM claims can be substantial.”


More information: 

Read the full report

You May Also Like

TPG Agrees to Acquire Classic Collision

TPG Capital, the U.S. and European private equity platform of TPG, will acquire the business from New Mountain Capital.

TPG, a global alternative asset management firm, announced that it has signed a definitive agreement to acquire Classic Collision, a leading national collision repair multi-site operator. TPG Capital, the U.S. and European private equity platform of TPG, will acquire the business from New Mountain Capital. Classic Collision’s management team will remain invested in the company. Terms of the transaction were not disclosed.

Survey: Independent Repair Shops View Vehicle Data Access as Top Issue

Auto Care Association survey shows 84% of independent repair shops view vehicle repair and maintenance data access as the top issue for their business.

Chicagoland CARSTAR Continues Support of Lincoln Tech

Chicagoland CARSTAR sponsored an educational booth at the Lincoln Tech Spring Career Fair for the ninth consecutive year.

CCC Launches New Intelligent Experience (IX) Cloud Platform

CCC IX Cloud will help customers focus on the claims, repair decisions and actions that will have the greatest impact on their business. 

Evercoat to Hold Free Webinar on Gel Coat Repairs

“Troubleshooting Gelcoat Repairs” will take place on April 11, 2024 at 2 p.m.

Other Posts

CIECA to Hold Webinar on New API Standards

The webinar will be held on Thursday, April 25 at 2 p.m. EST.

I-CAR CEO & President Announces Retirement

John Van Alstyne plans to retire in 2025 after a successful 15-year tenure.

Crash Champions Acquires Buddy Foster Collision, Expands Tampa Market

Crash Champions has announced the expansion of its Tampa service with the acquisition of Buddy Foster Collision and Towing in Zephyrhills, Fla.

ASE Education Foundation Seeks Outstanding Instructor for 2024 Byrl Shoemaker Award

The award recognizes a high school or college instructor from an ASE-accredited automotive, diesel/truck or collision repair program.