Economy May Increase Uninsured Motorists to All-Time High

Economy May Increase Uninsured Motorists to All-Time High 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", estimates the percentage of uninsured drivers countrywide and by state for the period 2005 to 2007. The rate of uninsured drivers in Kentucky in 2007 is estimated at 18%. 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. The study examined data collected from nine insurers, that represent approximately 50 percent of the private passenger auto insurance market in the U.S. On the web: www.ircweb.org. (Copyright 2007 Newsroom Solutions, LLC) Delivered by Newsroom Solutions RNS-01-21-09 0959CST