Auto insurance is required in the majority of the country, yet in many states, drivers take to the road without any insurance coverage. Washington, DC has one of the highest rates of uninsured drivers: Almost 1 in every 5 drivers doesn’t have insurance, according to MoneyGeek. To protect victims hit by these uninsured drivers, 21 states and DC require all drivers to have uninsured motorist coverage. This is more of a bandaid than a solution, however.
In reporting on “Uninsured Motorist Statistics 2021” for MoneyGeek, journalist Margaret Wack reached out to Attorney Thomas Simeone for his analysis on this topic.
First, Attorney Simeone explained that the root of the problem is the high cost of insurance.
“While some people are uninsured because they forget to pay their premiums or accidentally do not renew their policy, most uninsured motorists do not have insurance because they are seeking to save money,” Attorney Simeone explained. “Insurance is expensive – especially for those with bad driving records – and people assume that the odds of an accident are low, so they risk driving without insurance.”
And while uninsured motorist coverage may prove integral after a crash, it also makes insurance more expensive and, therefore, even less accessible to people short on cash.
Still, the problem is not an unfixable one. As Attorney Simeone said, states could greatly reduce the number of uninsured drivers by making insurance more accessible. Maryland is a near-perfect example, with its Maryland Automobile Insurance Fund that grants all drivers minimum insurance coverage.
“This reduces but does not eliminate, the number of uninsured motorists, “ Attorney Simeone wrote. “Other states may not have such an agency and therefore people who cannot get insurance from a private company may drive without insurance. … one way that states can reduce the number of uninsured motorists is to follow Maryland’s lead and set up an agency to provide minimal coverage at a low cost to drivers who cannot get through private insurers.”
There are other options. Some states have attempted to reduce the cost of insurance by capping personal injury claims, but research showed that insurance companies simply pocketed the extra cash instead of lowering their premiums.
In these cases, according to Attorney Simeone, “Insurers charge the same even though they are paying out less in claims, which raised their profits.”
Read more on this topic in the full MoneyGeek article here.
About Attorney Thomas Simeone
Attorney Thomas Simeone is a proven legal advocate with more than 30 years of experience. As the managing partner of Simeone & Miller, LLP, he represents personal injury victims in Washington, DC, Maryland, and Virginia. With his help, our legal team has won millions of dollars for those injured, helping them recover financially and emotionally after serious accidents.
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