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Slow economy might prompt more drivers
to operate vehicles without insurance

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). The report estimated that 9 percent of Idaho drivers will be operating without insurance, ranking the state in a tie for 36th, nationally.

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.”

Estimated percentage of uninsured motorists by state in 2007:

State	Percent uninsured	State	Percent Uninsured
1. New Mexico	29	25. Louisiana	12
2. Mississippi	28	25. Iowa	12
3. Alabama	26	25. Minnesota	12
4. Oklahoma	24	25. North Carolina	12
5. Florida	23	25. Georgia	12
6. Tennessee	20	32. New Hampshire	11
7. California	18	32. Oregon	11
7. Arizona	18	34. Delaware	10
9. Michigan	17	34. Kansas	10
10. Washington	16	36. Connecticut	9
10. Ohio	16	36. Virginia	9
10. Kentucky	16	36. South Carolina	9
13. Texas	15	36. Idaho	9
13. Nevada	15	36. Wyoming	9
13. Arkansas	15	41. New Jersey	8
13. Wisconsin	15	41. Utah	8
13. Illinois	15	41. Nebraska	8
13. Montana	15	41. West Virginia	8
13. Colorado	15	45. Pennsylvania	7
13. D.C.	15	45. South Dakota	7
21. Indiana	14	47. Vermont	6
21. Missouri	14	48. New York	5
21.. Rhode Island	14	48. North Dakota	5
24. Alaska	13	50. Maine	4
25. Maryland	12	51. Massachusetts	1
25. Hawaii	12