1 in 3 drivers is uninsured or underinsured: the coverage that protects you from them

Your liability coverage protects other people from you. It does nothing for you when the other driver is at fault and cannot pay.

That gap is far more common than most drivers assume.

The numbers

In 2023, 15.4% of U.S. motorists, more than one in seven, were uninsured. When drivers with too little coverage are included, a third of all motorists (33.4%) were uninsured or underinsured. The combined rate is 10 percentage points higher than in 2017, according to the Insurance Research Council (IRC).

The council is an industry-funded research group, but its estimates are the most widely cited measure of the problem. They are also the most recent available: the 2025 study covers 2023.

The rate varies sharply by state. That matters, but you cannot choose who hits you.

What the policy actually says

These coverages appear as separate lines on your declarations page. Many drivers carry only the state minimum without knowing what it means.

• Uninsured motorist bodily injury pays for injuries to you and your passengers when an at-fault driver has no insurance, or in a hit-and-run ( NAIC ).
• Uninsured motorist property damage pays for damage to your car in the same situations, in states where it is offered.
• Underinsured motorist coverage pays the difference when the at-fault driver has insurance, but not enough to cover your losses.
• Requirements vary by state. Some states require these coverages. Others require insurers to offer them and let you decline in writing ( NAIC ).

Why the limit matters

Consider what an underinsured driver means in practice. If another driver carries only a low state-minimum limit and causes an accident that seriously injures you, their policy may pay its limit and stop. Your medical bills, lost income and pain do not stop there.

Underinsured motorist coverage fills that gap, up to your own limit. A sound practice is to set your uninsured and underinsured limits to match your own liability limits. That way you protect yourself as well as you protect others.

What it does not replace

• Collision coverage still matters. Depending on your state, uninsured motorist property damage may be limited or unavailable, and collision coverage can pay for your car regardless of who was at fault, minus your deductible.
• Health insurance may cover some of your medical bills, but not lost wages or your passengers' costs.

Coverage check

• Find the uninsured and underinsured motorist lines on your declarations page.
• Compare those limits with your own liability limits.
• Check whether you previously signed a form rejecting or lowering this coverage.
• Ask whether your state offers uninsured motorist property damage, and whether you have it.
• Get a quote for raising these limits before deciding they are too expensive.
• Keep collision coverage if you could not replace your car from savings.

The bottom line: a third of the drivers around you may not be able to pay for an accident they cause. Uninsured and underinsured motorist coverage is how you protect yourself from them. Know your limits, and set them as carefully as you set your liability.

Sources

• Insurance Research Council, Uninsured and underinsured motorist study , March 2025 (industry-funded; data for 2023)
• National Association of Insurance Commissioners, Uninsured Motorists
• National Association of Insurance Commissioners, What Does Auto Insurance Cover?

Insurance rules and prices vary by state and insurer. This article is for general information, not individual advice; consult a licensed insurance professional for your situation.

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