Driving liabilities

If you get hit by a car in the US, there is about a one-third chance the driver’s insurance won’t be able to cover your damages. The percentage of motorists uninsured or underinsured for accident liability has increased from 23% in 2017 to 33% in 2023, a report the Insurance Research Council shows. Increased motor vehicle insurance prices have likely contributed to this trend, as they rose 53% over the same period data from the US Bureau of Labor Statistics shows. At the same time, the cost of medical care and vehicle repairs has risen, which increases the average claim size. This had led to more drivers being classified as underinsured because their policy limits don’t cover the full extent of damages. In some states, penalties for driving without insurance are not severe not enough to deter the behavior.

Source: Insurance Research Council, February 2025.