When you drive, you expect that the people around you are following the law — including carrying the minimum auto insurance required in their state. Unfortunately, many drivers are on the road with no coverage at all or with limits too low to pay for the damage they may cause. When accidents happen, this creates serious financial risks for everyone involved.

At Suncoast Financial & Insurance Agency, we believe understanding the impact of uninsured and underinsured driving is just as important as choosing the right policy. Here’s a clearer look at the scope of the issue and how you can protect yourself.

1. The Scope of the Problem: How Many Drivers Are Uninsured or Underinsured?

Uninsured driving isn’t rare — it’s a widespread issue that affects millions of people.

• The Insurance Research Council (IRC) reports that 15.4% of U.S. drivers were uninsured in 2023.
  • Source: https://www.iii.org/fact-statistic/facts-statistics-uninsured-motorists
• When you include drivers who have insurance but not enough to cover serious accidents, approximately 33.4% of drivers were either uninsured or underinsured.
  • Source: https://insuranceindustryblog.iii.org/irc-report-reveals-that-one-in-three-drivers-were-either-uninsured-or-underinsured-in-2023
• State averages vary widely — from 5.7% uninsured in Maine to 28.2% in Mississippi.
  • Source: https://www.iii.org/fact-statistic/facts-statistics-uninsured-motorists

This data shows that even responsible, insured drivers share the road with many who cannot pay for the harm they may cause.

2. Why Do Drivers Go Without Enough Insurance?

Drivers end up uninsured or underinsured for a variety of reasons:

• Affordability concerns: Insurance premiums have risen across many markets, and some drivers drop coverage because they feel they can’t manage the cost.
• Risk-based pricing: Drivers with at-fault accidents, DUIs, or multiple violations may face higher premiums and choose to drive without coverage.
• Minimum-limit complacency: Some drivers purchase only the lowest limits allowed by law — which often cover only a fraction of real-world accident costs.
• Misunderstanding policy details: Many people believe they have “full coverage,” when in reality they lack uninsured motorist (UM) protection or carry very low liability limits.

These factors combine to create a large population of drivers who cannot cover the costs of a serious crash.

3. How Uninsured & Underinsured Drivers Impact Everyone Else

The financial impact goes far beyond the uninsured driver themselves:

• When an uninsured driver causes a crash, costs often shift to:
  • The insured driver who was hit
  • The insured driver’s insurance company
  • Other policyholders, through increased premiums
• The IRC has noted a growing gap between required minimum coverage and real claims costs, especially for injuries — increasing the number of drivers considered underinsured.
  • Source: https://www.insurance-research.org/node/130
• As medical care, repairs, and vehicle values rise, low-limit policies no longer cover typical accident losses — increasing the strain on the entire system.

In short, uninsured and underinsured driving pushes costs upward for everyone else.

4. The Importance of Uninsured/Underinsured Motorist Coverage (UM/UIM)

UM and UIM coverage exist to protect you from drivers who fail to carry enough insurance. These coverages may help with:

• Medical expenses
• Lost wages
• Hospital treatment
• Long-term injury care
• Car repairs
• Legal costs

Here’s how they differ:

• Uninsured Motorist (UM) helps when the at-fault driver has no insurance at all.
• Underinsured Motorist (UIM) helps when the at-fault driver has insurance but not enough to cover the full damages.
• Uninsured Motorist Property Damage (UMPD) may help repair your vehicle if the uninsured driver damaged it.

The right combination of coverages can prevent a financially devastating situation.

5. Choosing Adequate UM/UIM Limits

Many drivers underestimate how much protection they actually need.

A few guidelines:

• Consider matching UM/UIM limits to your bodily injury liability limits.
• Higher limits provide stronger financial protection — especially if you drive often or live in an area with high uninsured-driver rates.
• Review your policy whenever something significant changes:
  • New vehicle
  • Change of address
  • Teen driver added
  • Income changes
  • Increase in daily commuting

At Suncoast Financial & Insurance Agency, we help ensure your limits reflect your real risks — not just minimum state requirements.

6. Practical Steps You Can Take to Stay Protected

Here’s how to reduce your exposure to uninsured or underinsured drivers:

1. Confirm your policy is active and current. Even short lapses create risk.
2. Review your UM/UIM limits regularly. Many drivers discover theirs are too low.
3. Encourage others in your household to stay insured. One uninsured family member can increase system-wide risk.
4. Drive defensively. Stay alert and avoid aggressive or distracted driving.
5. Update your policy as life changes. New vehicles, moves, or additional drivers may require more coverage.

Staying informed and properly insured goes a long way in reducing your overall risk.