Uninsured Motorists — The Number is Rising

U.S. News & World Report says the number of states where 20% or more of those driving on streets, roads and highways has doubled since 2022. Reporter Rachel Brennan says the reason for the increase is a higher cost of living and people trying to fit housing costs, the cost of auto insurance, and other factors into an increasingly tight budget.

Poverty rates are also a factor.

"There is also a correlation between the escalating high cost-of-living expenses, stagnant wages and other issues straining the average household budget, indicating that despite the dangers of driving uninsured, car insurance seems to be an expense some people are willing to cut when trying to balance their budget,” Brennan said.

Two of the 10 PIA Western Alliance states are in the eight states with more than 20% of drivers driving uninsured. They are New Mexico and California.

In New Mexico the Motor Vehicle Department keeps track of registered vehicles. The state’s Mandatory Responsibility Act requires insurance and if the insurance status is unknown, the state reaches out to the individual owning the vehicle. They have 30 days to comply or the vehicle registration is suspended and there is a $30 reinstatement fee. Get caught driving with out insurance and face fines and possibly jail time.

California’s driving without insurance penalties result in fines. Other penalties can come into play as well. Get into a crash without insurance and a driver’s license can be suspended for up to four years. And that’s no matter who is at fault.

Here’s the eight state list:

1. Mississippi

Uninsured rate: 28.2%

Average annual premium: $1,505.00

2. New Mexico

Uninsured rate: 24.1%

Average annual premium: $1,530.00

3. Washington D.C.

Uninsured rate: 23.1%

Average annual premium: $1,727.00

4. Michigan

Uninsured rate: 22.3%

Average annual premium: $1,920.00

5. Tennessee

Uninsured rate: 21.3%

Average annual premium: $1,264.00

6. Missouri

Uninsured rate: 20.7%

Average annual premium: $2,055.00

7. Florida

Uninsured rate: 20.6%

Average annual premium: $2,551.00

8. California

Uninsured rate: 20.4%

Average annual premium: $1,782.00

Source link: PropertyCasualty360.com — https://bit.ly/4cagZep