National Press Release

MALVERN, Pa., Jan. 21 /PRNewswire-USNewswire/ -- 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, 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."

The IRC study examined data collected from nine insurers, representing approximately 50 percent of the private passenger auto insurance market in the U.S. For more detailed information on the study's methodology and findings, contact David Corum by phone at (610) 644-2212, ext. 7506; by fax at (610) 640-5388; or by e-mail at irc@cpcuiia.org; or visit the IRC's Web site at www.ircweb.org. Copies of the study are available for $125 each in the U.S. ($140 elsewhere) postpaid from the Insurance Research Council, 718 Providence Rd., Malvern, Pa. 19355-3402. Phone: (610) 644-2212, 7574. Fax: (610) 640-5388.

The Insurance Research Council is a division of the American Institute for CPCU and the Insurance Institute of America. The Institutes are independent, not-for-profit organizations dedicated to providing educational programs, professional certification, and research for the property-casualty insurance business. The IRC provides timely and reliable research to all parties involved in public policy issues affecting insurance companies and their customers. The IRC does not lobby or advocate legislative positions. It is supported by leading property-casualty organizations.

    Estimated Percentage of Uninsured Motorists by State in 2007

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

SOURCE Insurance Research Council