Revealed – US states that require coverage for uninsured motorists

“Laws in many countries have proven ineffective in reducing the number of uninsured drivers,” the Insurance Information Institute (III) previously explained about uninsured motorists on its website. “There are many reasons for this. Some drivers can’t afford insurance and some drivers who pay extra for accidents or traffic violations don’t want to pay the high costs that come with poor driving.

“Compared to the 13% uninsured driver rate in the U.S., it is very expensive to pursue insurance policy violators. State insurance departments and insurance companies are using new methods to address the problem of uninsured drivers, including the use of electronic verification systems. car insurance fast.”

However, the issue is still ongoing and because of this, although the connection of unsecured cars is not legal in all states, it may be worth considering for many drivers in the country.

Read more: America’s top insurers in 2022 – state-by-state breakdown

What is unsecured car insurance?

According to III, the provision of uninsured motorists, also called UM, is designed to provide compensation to the owner of the driver when the driver does not have liability insurance or leaves the scene of the accident.

The agency added that while this type of policy does not reduce the number of uninsured drivers on the road, it does provide a way for drivers to deal with the financial burden of accidents caused by hit-and-run or uninsured drivers.

How does unsecured car protection work?

In most cases, when an accident occurs and the other driver is at fault, their car insurance must pay for the repairs and medical expenses that the driver and passenger have to pay. However, if the at-fault driver is uninsured and unable to pay, the other driver may be able to recover the debt.

This is where uninsured motorist coverage comes in handy. This type of policy fills the gap between the driver’s insurance coverage and the ability of the at-fault driver.

UM is often associated with uninsured motorists (UIM), which perform the same function. The only difference is that UIM provides financial protection when the at-fault driver is insured, but their compensation is not sufficient to cover the full amount.

Read more: Revealed – the cheapest countries for car insurance in 2022

What does uninsured motorist insurance cover?

Unprotected driving laws provide two types of protection. These are:

  • Uninsured motorist bodily injury (UMBI): This pays for medical bills, pain and suffering expenses, lost wages, and funeral expenses due to a collision with an uninsured motorist. Other laws also cover accidents involving pedestrians and cyclists.
  • Uninsured motorist property damage (UMPD): This pays for damage to the owner’s vehicle or property after an accident with an uninsured motorist. Some policies, however, require the insured to pay the deductible.

Several states also allow “savings,” which benefits those with more than one insured vehicle. This practice gives drivers the option to combine UMBI limits for multiple vehicles, either for a single policy or for multiple policies under the same insurance name, raising the total amount.

“[To illustrate], in a three-car family, where the uninsured motorist limit is $20,000, in a state that does not limit coverage, the amount available to pay for an accident with an uninsured driver would be $60,000,” III explained. “[But] because stacking increases the cost of car insurance, about half of the states prohibit stacking. “

Read more: Revealed – the most expensive and cheapest cars to insure in the US

Which states require uninsured motorist coverage?

There are more than 20 states in the US where uninsured motorists are required to be licensed. In some areas, insurance companies are required to offer UM policies, but purchasing them is not mandatory. A few states require drivers to take measures to drive without insurance.

Below is a complete list of states that require coverage for uninsured and underinsured motorists, along with the corresponding limits.

Government

The required value is the minimum limit

Connecticut

COVERAGE: $25,000 per person, $50,000 per accident

District of Columbia

COVERAGE: $25,000 per person, $50,000 per accident

UMPD: $5,000 per accident

Illinois

COVERAGE: $25,000 per person, $50,000 per accident

Kansas

COVERAGE: $25,000 per person, $50,000 per accident

Maine

COVERAGE: $50,000 per person, $100,000 per accident

Maryland

COST: $30,000 per person, $60,000 per accident

UMPD: $15,000 per accident

Massachusetts

COVERAGE: $20,000 per person, $40,000 per accident

Minnesota

COVERAGE: $25,000 per person, $50,000 per accident

Missouri

COVERAGE: $25,000 per person, $50,000 per accident

Nebraska

COVERAGE: $25,000 per person, $50,000 per accident

New Hampshire

COVERAGE: $25,000 per person, $50,000 per accident

UMPD: $25,000 per accident

new York

COVERAGE: $25,000 per person, $50,000 per accident

North Carolina

COST: $30,000 per person, $60,000 per accident

UMPD: $25,000 per accident

North Dakota

COVERAGE: $25,000 per person, $50,000 per accident

Oregon

COVERAGE: $25,000 per person, $50,000 per accident

South Carolina

COVERAGE: $25,000 per person, $50,000 per accident

UMPD: $25,000 per accident

South Dakota

COVERAGE: $25,000 per person, $50,000 per accident

Vermont

COVERAGE: $50,000 per person, $100,000 per accident

UMPD: $10,000 per accident

Virginia

COVERAGE: $25,000 per person, $50,000 per accident

UMPD: $20,000 per accident

West Virginia

COVERAGE: $25,000 per person, $50,000 per accident

UMPD: $25,000 per accident

Wyoming

COVERAGE: $25,000 per person, $50,000 per accident

Source: Insurance Information Institute, January 2022

In New Hampshire and Virginia, auto insurance is not mandatory but when purchased, it must include motorist coverage.

How much does it cost to buy a car without insurance?

Uninsured motorist insurance premiums are cheaper than other types of auto insurance, although rates may be higher in areas with a high number of uninsured drivers. On average, UM coverage costs less than regular insurance.

Finance company NerdWallet pegs the cost of uninsured coverage at less than half the regular price, while finance website MarketWatch says drivers can get UM coverage for just an extra $5 to $10 on their monthly payments.

Read more: Ten ways driving can save you money on your car insurance premiums

Is the action against uninsured motorists worth it?

While it’s not mandatory in most states, there are several reasons drivers should consider getting UM, according to experts.

“You may be required to purchase uninsured motorist coverage, depending on where you live, but even if you’re not, it’s worth considering,” NerdWallet advised. This type of insurance costs very little and can save you thousands of dollars if you are hit by an uninsured driver.

It added that even for those with health insurance, buying a UM policy has its advantages.

“Even if your health insurance should pay for medical care after an accident, uninsured car leasing can be beneficial, as it can cover ongoing costs such as long-term care,” the company said. “Furthermore, there are often no deductibles for UMBI, which can be a major insurance deductible.”