IRC Estimates More Than 14 Percent of Drivers Are Uninsured

MALVERN, Pa., June 28 -- Across the United States, if someone is injured in an auto accident, the chances are about one in seven that the at-fault driver is uninsured. According to a recent Insurance Research Council (IRC) study, the estimated percentage of uninsured motorists increased nationally from 12.7 percent in 1999 to 14.6 percent in 2004. However, the magnitude of the uninsured motorists problem varied widely from state to state.

The recently released study, Uninsured Motorists, 2006 Edition, examines trends from 1999 to 2004 in the percentage of uninsured drivers by state. In 2004, the five states with the highest uninsured driver estimates were Mississippi (26 percent), Alabama (25 percent), California (25 percent), New Mexico (24 percent), and Arizona (22 percent). The five states with the lowest uninsured driver estimates were Maine (4 percent), Vermont (6 percent), Massachusetts (6 percent), New York (7 percent), and Nebraska (8 percent).

IRC estimates the uninsured driver population 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. The study contains recent statistics by state on uninsured motorists claim frequency, bodily injury claim frequency, and the ratio of uninsured motorists to bodily injury claim frequencies.

"Even though most states require drivers to maintain insurance, the problem of uninsured motorists persists," explained Elizabeth A. Sprinkel, senior vice president of the IRC. "Responsible drivers who purchase insurance end up paying for injuries caused by uninsured drivers."

The IRC study examined data collected from eleven insurers, representing approximately 58 percent of the private passenger auto insurance market in the U.S. For more detailed information on the study's methodology and findings, contact Elizabeth Sprinkel by phone at (610) 644-2212, ext. 7568; by fax at (610) 640-5388; or by e-mail at irc@cpcuiia.org; or visit the IRC's Web site at http://www.ircweb.org/ . Copies of the study are available for $100 each in the U.S. ($115 elsewhere) postpaid from the Insurance Research Council, 718 Providence Rd., Malvern, Pa. 19355-0725. Phone: (610) 644-2212, ext. 7569. Fax: (610) 640-5388.

       Estimated Percentage of Uninsured Motorists by State in 2004

  State           Uninsured  State       Uninsured   State         Uninsured
  Mississippi        26%     Oklahoma       15%      Virginia         10%
  Alabama            25      Rhode Island   14       West Virginia    10
  California         25      Wisconsin      14       Pennsylvania     10
  New Mexico         24      Arkansas       14       South Carolina   10
  Arizona            22      Hawaii         13       Georgia          10
  Tennessee          21      Kansas         13       New Jersey        9
  Dist. of Columbia  21      Montana        12       Utah              9
  Florida            19      Iowa           12       Idaho             9
  Washington         18      Oregon         12       South Dakota      9
  Nevada             17      Missouri       12       New Hampshire     9
  Michigan           17      Maryland       12       North Dakota      9
  Texas              16      Connecticut    12       North Carolina    8
  Illinois           16      Kentucky       12       Nebraska          8
  Indiana            16      Delaware       12       New York          7
  Ohio               15      Wyoming        11       Massachusetts     6
  Alaska             15      Minnesota      10       Vermont           6
  Colorado           15      Louisiana      10       Maine             4