More Drivers Are Underinsured and Unprotected in a Post-Pandemic World
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Despite the fact that most states require drivers to carry a form of insurance, a growing number of drivers are underinsured or uninsured following the pandemic. In an attempt to mitigate this, some states started to conduct random insurance verification checks, along with “no pay, no play” laws that limit uninsured drivers’ ability to recover compensation following an accident.
Where Underinsured and Uninsured Drivers Are Located
The number of underinsured and uninsured motorists varies greatly depending on the state and the laws in place. The Insurance Research Council (IRC) concluded that there are around 32 million uninsured drivers across the U.S. or one in eight drivers out of 215 million.
The states with the highest rate of uninsured drivers include Mississippi (29.4%), Michigan (25.5%), Tennessee (23.7%), New Mexico (21.8%), and Washington (21.7%). Meanwhile, the states with the lowest rate include New Jersey (3.1%), Massachusetts (3.5%), New York (4.1%), Maine (4.9%), and Wyoming (5.8%).
Why People Are Uninsured or Underinsured Following the Pandemic
One of the main reasons why more people are driving without sufficient coverage is the financial impact of the pandemic. Many Americans suffered after losing their jobs at the onset of the pandemic, which began to affect their financial wellbeing. Many Americans remain unemployed even after the effects of the pandemic have begun to subside, forcing them to live paycheck to paycheck and make more difficult decisions.
Some may be in a situation where they have just enough money to pay either their rent or insurance payment, leading them to choose the former to avoid eviction. As people continue to face these types of financial hardships, they’re likely to remain underinsured or entirely uninsured in the meantime. This is why other insured drivers need to avoid assuming that the other party is insured if they’re involved in a car crash.
What Happens if the At-Fault Party in an Accident Is Uninsured
If an uninsured or underinsured driver is responsible for an accident, it’s possible for the other party to file a compensation claim with their own insurer or file a lawsuit against the other party for negligence. Although drivers often expect others to carry insurance, this won’t always be the case, making it important to prepare in the event they are involved in any type of accident with an uninsured motorist.
Generally, the insured party will follow the same steps as any other car accident if an at-fault driver is either uninsured or underinsured. They should seek medical attention if needed, and they may still need to visit a medical professional even if they feel fine to avoid latent injury development.
In addition, it’s important to contact the police to file a report that may help provide evidence when filing a claim or lawsuit. Other evidence to capture includes photos and video footage of the accident scene, vehicles involved, and injuries, along with the at-fault party’s contact information. From there, the party that isn’t at fault may be able to file an insurance claim with their own insurer. In some cases, filing a lawsuit may be warranted.
Even in a post-pandemic world, many drivers are likely to be uninsured and underinsured, making it necessary to prepare for accidents that involve uninsured drivers.
