One in three U.S. drivers (33.4%) is either uninsured or underinsured, according to the Insurance Research Council's latest report covering 2017-2023 data. The combined rate has jumped 10 percentage points since 2017, and economic pressures in 2026 -- including tariffs and rising repair costs -- threaten to push the number higher.
One in three drivers on American roads carries either no auto insurance or not enough of it to cover a serious accident, according to the Insurance Research Council's (IRC) 2025 report on uninsured and underinsured motorists. The combined uninsured/underinsured rate hit 33.4% in 2023, up 10 percentage points from 23.4% in 2017.
For the roughly 220 million insured drivers in the U.S., that statistic translates directly into higher premiums. Every uninsured motorist claim that gets paid comes out of the pool of insured policyholders, adding an estimated $200 or more per year to the average driver's bill, according to industry analyses.
- 33.4% of U.S. drivers were uninsured or underinsured in 2023 -- up from 23.4% in 2017
- 15.4% were fully uninsured (1 in 7 drivers); 18.0% were underinsured (1 in 6)
- Mississippi leads with 28.2% uninsured; Maine has the lowest rate at 5.7%
- The average bodily injury claim now exceeds $26,500 -- far above most state minimums
- UM/UIM coverage costs roughly $100-$200/year and is one of the most cost-effective protections available
Uninsured Rate Has Been Climbing Steadily Since the Pandemic
The IRC analyzed data from 17 insurers representing approximately 55% of the U.S. private passenger auto market. Before COVID-19, uninsured motorist rates were actually falling -- only 11 states saw increases between 2017 and 2019. The pandemic reversed that trend sharply.
The national uninsured rate jumped from 11.6% in 2019 to 14.3% in 2020 and has risen every year since, reaching 15.4% in 2023. Meanwhile, the underinsured rate climbed to 18.0%, with nearly every state experiencing an increase. The only exceptions were New York and the District of Columbia, according to the IRC.
| Year | Uninsured Rate | Change from Prior Year |
|---|---|---|
| 2017 | 12.4% | -- |
| 2018 | 12.1% | -0.3 pts |
| 2019 | 11.6% | -0.5 pts |
| 2020 | 14.3% | +2.7 pts |
| 2021 | 14.6% | +0.3 pts |
| 2022 | 15.2% | +0.6 pts |
| 2023 | 15.4% | +0.2 pts |
Source: Insurance Research Council, "Uninsured and Underinsured Motorists: 2017-2023." Rates measured as ratio of UM claims to bodily injury (BI) claim frequencies, based on data from 17 insurers representing ~55% of the U.S. private passenger auto market.
The States Where Uninsured Driving Is Worst
Mississippi leads the nation with a 28.2% uninsured motorist rate -- meaning more than 1 in 4 drivers on Mississippi roads has no auto insurance at all. New Mexico (24.1%), Washington D.C. (23.1%), Michigan (22.3%), and Tennessee (21.3%) round out the top five, according to the IRC's 2023 data.
The number of states with uninsured rates above 20% doubled from 2022 to 2023, a troubling acceleration. Eight states now exceed that threshold: Mississippi, New Mexico, D.C., Michigan, Tennessee, Missouri (20.7%), Florida (20.6%), and California (20.4%).
| State | Uninsured Rate (2023) | National Rank | State Minimum Limits |
|---|---|---|---|
| Mississippi | 28.2% | #1 (highest) | 25/50/25 |
| New Mexico | 24.1% | #2 | 25/50/10 |
| D.C. | 23.1% | #3 | 25/50/10 |
| Michigan | 22.3% | #4 | 250/500/10 |
| Tennessee | 21.3% | #5 | 25/50/25 |
| Missouri | 20.7% | #6 | 25/50/25 |
| Florida | 20.6% | #7 | 10/20/10 |
| California | 20.4% | #8 | 30/60/15 |
| Maine | 5.7% | #51 (lowest) | 50/100/25 |
| Utah | 6.2% | #50 | 25/65/15 |
Source: Insurance Research Council (2023 data); state minimum limits from III/American Property Casualty Insurers Association (as of December 2023). California's minimums increased to 30/60/15 effective January 2025. New Jersey raised minimums to 35/70/25 in January 2026.
On the other end, Maine (5.7%), Utah (6.2%), Idaho (6.4%), Wyoming (6.7%), and Montana (7.2%) have the lowest uninsured rates. A pattern emerges: states that require UM/UIM coverage tend to have lower uninsured rates. In 2023, the uninsured rate was 13.3% in states requiring UIM coverage versus 18.9% in states that don't, according to the IRC.
The Underinsured Problem Is Actually Worse Than Uninsured
While uninsured drivers get the headlines, the underinsured problem may be more financially dangerous. An underinsured driver technically carries coverage but with limits too low to pay for the damage they cause. In 2023, 18.0% of drivers were underinsured -- nearly 1 in 5 accidents with injuries involved losses exceeding the at-fault driver's coverage limits, according to the IRC.
Colorado has the worst underinsured rate in the country at 49.7% -- meaning roughly half of all insured Colorado drivers carry limits inadequate for a serious accident. Michigan, Kentucky, and Georgia also saw above-average increases in underinsured rates from 2017 to 2023.
The math shows why this matters. The average bodily injury liability claim was $26,501 in 2023, according to the Insurance Information Institute. Yet 15 states still allow minimums of $25,000 per person or less for bodily injury. A single trip to the ER after a moderate car accident can easily exceed $50,000. If the driver who hits you carries a 25/50/25 minimum policy, you could be on the hook for $25,000 or more out of pocket -- unless you carry adequate uninsured/underinsured motorist coverage.
What This Means for Insured Drivers
If you're properly insured, the growing uninsured/underinsured crisis still affects you in two ways.
First, it raises your premiums. Insurers spread the cost of UM/UIM claims across all policyholders. In states with high uninsured rates like Mississippi and Florida, that hidden surcharge is built into every policy. The IRC's Dale Porfilio, president of the IRC and chief insurance officer at the Insurance Information Institute, warned that rising underinsured rates point to higher UIM premiums ahead, which could worsen affordability and potentially drive even more people to drop coverage.
Second, if an uninsured or underinsured driver hits you and you don't carry UM/UIM coverage, you may have to pay for your own medical bills, lost wages, and car repairs. In states where UM/UIM isn't mandatory -- roughly half the country -- many drivers unknowingly lack this critical protection.
2026 Outlook: Tariffs and Economic Pressure Could Make It Worse
The trajectory heading into 2026 is concerning. Insurify projects a modest 1% national average premium increase in 2026, but tariffs on imported auto parts could add another 3 percentage points if repair costs rise significantly. Higher premiums push more marginal drivers to drop coverage or reduce limits.
Several states have recently raised their minimum coverage requirements -- New Jersey increased to 35/70/25 in January 2026, California moved to 30/60/15 in January 2025, and North Carolina raised to 50/100/50 in July 2025. While these changes improve protection for accident victims, they also increase the minimum cost of compliance, potentially pricing out some lower-income drivers.
The IRC estimates that UM claim frequency has grown 39% since 2020 -- significantly faster than the 29% growth in standard bodily injury claims over the same period. Every UM claim paid by an insurer gets passed back to policyholders through higher premiums. In high-uninsured states like Mississippi, Florida, and Michigan, insured drivers effectively subsidize uninsured ones.
What You Should Do Now
Check Your UM/UIM Limits Today
Log into your insurer's portal or call your agent and ask what your current uninsured/underinsured motorist limits are. If you see 25/50 or lower -- or if UM/UIM isn't on your policy at all -- you're exposed. Compare your limits to your state's requirements on our coverage guide.
Raise Your UM/UIM to Match Your Liability Limits
Most insurance experts recommend carrying UM/UIM limits equal to your liability limits -- ideally at least 100/300. The cost difference is often modest: increasing from state minimum UM/UIM to 100/300 typically adds $50-$150 per year, depending on your state and driving record. That's roughly $4-$12 per month for protection against claims that can easily reach $50,000+.
Shop Around -- Especially in High-Risk States
If you live in a state with uninsured rates above 15% (Mississippi, Florida, Michigan, California, Tennessee, and others), UM/UIM pricing varies significantly between carriers. Get quotes from at least three insurers to find the best rate for adequate coverage.
Consider an Umbrella Policy
For drivers with significant assets, a personal umbrella policy (starting around $150-$300/year for $1 million in coverage) provides an extra layer above your auto policy limits, including UM/UIM in most states.
Looking Ahead
The IRC's data runs through 2023, but the factors driving the uninsured crisis -- affordability pressure, rising premiums, and economic uncertainty -- remain in play through 2026. With auto insurance rates still elevated in many states, the financial temptation to drop coverage or reduce limits is real for millions of drivers.
States that require UM/UIM coverage and enforce insurance verification systems tend to have lower uninsured rates. More states are moving in this direction, but progress is slow. In the meantime, the burden falls on individual drivers to protect themselves.
The IRC plans to continue tracking these trends. If uninsured and underinsured rates continue climbing, expect regulators and consumer advocates to push for stronger enforcement, expanded low-income assistance programs, and higher state minimum requirements.
Frequently Asked Questions
Uninsured motorist (UM) coverage pays for your injuries and damages when the at-fault driver has no insurance at all. Underinsured motorist (UIM) coverage kicks in when the at-fault driver has insurance but their limits are too low to cover your losses. For example, if the other driver has a 25/50 policy but your medical bills total $60,000, UIM coverage would help pay the $35,000 gap.
About 20 states and the District of Columbia require some form of UM or UIM coverage. States like Illinois, Kansas, Maine, Maryland, Minnesota, and New York require both. However, even in states where it's optional, insurance experts strongly recommend carrying it. Check with your state's department of insurance or your agent for your specific requirements.
UM/UIM coverage typically costs between $100 and $200 per year, or roughly $8-$17 per month, according to industry data. The exact cost depends on your state, coverage limits, driving record, and insurer. In most cases, it represents 5-10% of your total auto insurance premium -- a relatively small addition for significant protection.
Without UM coverage, you would need to pay for your own medical bills, lost wages, and vehicle repairs out of pocket -- or sue the uninsured driver directly. In practice, suing an uninsured driver rarely recovers meaningful compensation because they typically lack assets. Some states have "no pay, no play" laws that further limit what uninsured drivers can recover in lawsuits.
Several factors drive high uninsured rates: high insurance costs (Florida, Michigan), poverty and low income (Mississippi, New Mexico), weak enforcement of insurance mandates, and unique state insurance systems. Michigan's historically expensive no-fault system pushed many drivers to go without coverage. Florida doesn't require bodily injury liability at all, only PIP and property damage, contributing to its high uninsured rate.
- Insurance Research Council - Uninsured and Underinsured Motorists: 2017-2023
- Triple-I Blog - IRC Report Reveals One in Three Drivers Uninsured or Underinsured
- Insurance Information Institute - Facts + Statistics: Uninsured Motorists
- Insurify - 2026 Car Insurance Report: Affordability Gap Between States
- Carrier Management - IRC Finds 1 in 3 U.S. Drivers Are Either Uninsured or Underinsured
- Insurance Information Institute - Facts + Statistics: Auto Insurance (Claim Cost Data)