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Mercury Insurance Explains How Uninsured Drivers Affect Insurance Costs and How You Can Protect Yourself
A greater number of Americans are getting behind the wheel without auto insurance, raising costs for all drivers across the country.
About this update from Mercury General Corporation
[{"type":"text","content":"14% of U.S. Drivers Do Not Have Auto Insurance","length":46,"tagName":"p"},{"type":"text","content":"LOS ANGELES, March 27, 2025 /PRNewswire-PRWeb/ -- A greater number of Americans are getting behind the wheel without auto insurance, raising costs for all drivers across the country.","length":187,"tagName":"p"},{"type":"text","content":"From 2019 to 2022, the percentage of uninsured motorists grew from 11% to 14% according to the Insurance Research Council, which translates to approximately 1 in 7 drivers in the U.S. According to Bankrate, the average cost of full coverage car insurance is roughly $205 per month as of November 2024.","length":301,"tagName":"p"},{"type":"text","content":"The increasing frequency of uninsured drivers strains insurance companies financially. When insurers are forced to cover the costs of accidents caused by these drivers, expenses increase. The burden of these increased costs is then passed on to the consumer, meaning that responsible, insured drivers have to shoulder the burden.","length":329,"tagName":"p"},{"type":"text","content":"In recent years, policyholders collectively paid $16 billion for uninsured and underinsured motorist coverage, per Answer Financial.","length":132,"tagName":"p"},{"type":"text","content":""The reality is we all bear the burden for motorists who drive without auto insurance and it's tough on both the insurer and insured," said Kevin Quinn, Vice President of Auto Claims for Mercury Insurance. "We understand that affordability is a problem, but driving without insurance not only creates a significant liability for the driver, it also exacerbates the affordability problem for everyone."","length":425,"tagName":"p"},{"type":"text","content":"Here are some key factors that explain how uninsured drivers affect insurance rates:","length":84,"tagName":"p"},{"type":"list","items":[{"val":[{"type":"text","content":"Increased risk for insurers: When a significant number of drivers are uninsured, it raises the risk for insurance companies, as they may need to pay out more in claims for accidents involving uninsured motorists.","length":212,"tagName":"p"}]},{"val":[{"type":"text","content":"Higher premiums for insured drivers: To offset the increased risk, insurance companies raise premiums for all insured drivers, even if they have a clean driving recor...