MALVERN, Pa., Jan. 21 /PRNewswire-USNewswire/ -- Approximately one in six
drivers across the United States may be driving uninsured by 2010, according
to a recent study from Insurance Research Council (IRC). Although the
estimated percentage of uninsured motorists decreased nationally, from 14.9
percent in 2003 to 13.8 percent in 2007, the recent economic downturn is
expected to trigger a sharp rise in the uninsured motorist rate.
The recently released study, Uninsured Motorists, 2008 Edition, estimates the
percentage of uninsured drivers countrywide and by state for the period 2005
to 2007. The 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 liability claim frequency, and the ratio of uninsured motorists
to bodily injury claim frequencies.
The magnitude of the uninsured motorists problem varied widely from state to
state. In 2007, the five states with the highest uninsured driver estimates
were New Mexico (29 percent), Mississippi (28 percent), Alabama (26 percent),
Oklahoma (24 percent), and Florida (23 percent). The five states with the
lowest uninsured driver estimates were Massachusetts (1 percent), Maine (4
percent), North Dakota (5 percent), New York (5 percent), and Vermont (6
percent).
The report also found a strong correlation between the percent of uninsured
motorists and the unemployment rate: An increase in the unemployment rate of
one percentage point is associated with an increase in the uninsured motorist
rate of more than three-quarters of a percentage point. Based on current
unemployment rate projections, the percentage of uninsured motorists is
expected to rise from 13.8 in 2007 to 16.1 in 2010.
"An increase in the number of uninsured motorists is an unfortunate
consequence of the economic downturn and illustrates how virtually everyone is
affected by recent economic developments," said 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 nine insurers, representing
approximately 50 percent of the private passenger auto insurance market in the
U.S. For more detailed information on the study's methodology and findings,
contact David Corum by phone at (610) 644-2212, ext. 7506; by fax at (610)
640-5388; or by e-mail at irc@cpcuiia.org; or visit the IRC's Web site at
www.ircweb.org. Copies of the study are available for $125 each in the U.S.
($140 elsewhere) postpaid from the Insurance Research Council, 718 Providence
Rd., Malvern, Pa. 19355-3402. Phone: (610) 644-2212, 7574. Fax: (610)
640-5388.
The Insurance Research Council is a division of the American Institute for
CPCU and the Insurance Institute of America. The Institutes are independent,
not-for-profit organizations dedicated to providing educational programs,
professional certification, and research for the property-casualty insurance
business. The IRC provides timely and reliable research to all parties
involved in public policy issues affecting insurance companies and their
customers. The IRC does not lobby or advocate legislative positions. It is
supported by leading property-casualty organizations.
Estimated Percentage of Uninsured Motorists by State in 2007
State Uninsured State Uninsured State Uninsured
----- --------- ----- --------- ----- ---------
New Mexico 29% Montana 15% Kansas 10%
Mississippi 28% Colorado 15% Connecticut 9%
Alabama 26% D.C. 15% Virginia 9%
Oklahoma 24% Indiana 14% South
Carolina 9%
Florida 23% Missouri 14% Idaho 9%
Tennessee 20% Rhode Island 14% Wyoming 9%
California 18% Alaska 13% New Jersey 8%
Arizona 18% Maryland 12% Utah 8%
Michigan 17% Hawaii 12% Nebraska 8%
Washington 16% Louisiana 12% West Virginia 8%
Ohio 16% Iowa 12% Pennsylvania 7%
Kentucky 16% Minnesota 12% South Dakota 7%
Texas 15% North Vermont 6%
Carolina 12%
Nevada 15% Georgia 12% New York 5%
Arkansas 15% New Hampshire 11% North Dakota 5%
Wisconsin 15% Oregon 11% Maine 4%
Illinois 15% Delaware 10% Massachusetts 1%
SOURCE Insurance Research Council
David Corum of the Insurance Research Council, +1-610-644-2212, ext. 7506,
corum@cpcuiia.org
