Uninsured Motorist Coverage: Why It Matters and How to Get Protected
About one in seven drivers (15.4%) in the U.S. do not carry auto liability insurance, according to the Insurance Research Council. When underinsured drivers are included, roughly one in three drivers on the road are either uninsured or underinsured — exposing themselves and others to significant financial risk.
Getting into an accident with an uninsured motorist can carry serious financial consequences, depending on where you live and whether your state follows a “no-fault” or “tort” system.
No-Fault vs. Tort States: Why It Matters
- No-fault states — The law doesn’t assign blame for an accident. Each driver is reimbursed by their own insurance company for damages, regardless of fault.
- Tort states — Insurance companies pay claims based on the percentage of fault assigned to each driver.
Florida is a no-fault state, which means Florida drivers rely on their own Personal Injury Protection (PIP) coverage for certain injury-related costs after an accident, regardless of who caused it.
Regardless of which system applies, one problem remains the same: if you’re in an accident with an uninsured driver, there’s no insurance company on their end to reimburse their share of the damage. That gap can leave you financially responsible for costs that should have been covered by the other driver.
How to Protect Yourself Against Uninsured Drivers
Some states require drivers to carry uninsured motorist coverage (and underinsured motorist coverage). Even where it’s not required, adding this protection to your auto policy is generally a smart move — especially in states like Florida, which has one of the higher uninsured-driver rates in the country.
Uninsured and underinsured motorist coverage can protect you against both:
- Bodily injury costs
- Property damage costs
This coverage can also be valuable in hit-and-run situations, where an at-fault driver flees the scene without exchanging insurance information.
Getting Started
The best first step toward protection against uninsured motorists is a conversation with your insurance agent. Ask about:
- Your current auto policy coverage
- Your state’s specific insurance laws (Florida drivers should ask specifically about PIP and uninsured motorist requirements)
- What steps you need to take to add or increase uninsured/underinsured motorist protection
If you’re evaluating your auto insurance coverage as part of a broader financial plan in Fort Myers or Southwest Florida, a fee-only fiduciary advisor can help you think through how insurance gaps like this fit into your overall risk management strategy.
Frequently Asked Questions
What is uninsured motorist coverage?
Uninsured motorist coverage is a part of an auto insurance policy that protects you financially if you’re in an accident caused by a driver who doesn’t have liability insurance. It can help cover bodily injury and property damage costs that the at-fault driver’s insurance would normally pay.
What’s the difference between uninsured and underinsured motorist coverage?
Uninsured motorist coverage applies when the at-fault driver has no insurance at all. Underinsured motorist coverage applies when the at-fault driver has insurance, but their policy limits aren’t enough to cover the full cost of the accident.
How common are uninsured drivers?
According to the Insurance Research Council, about one in seven drivers (15.4%) nationwide were uninsured as of the most recent data, and roughly one in three were either uninsured or underinsured.
Is uninsured motorist coverage required in Florida?
Florida is a no-fault state that requires drivers to carry Personal Injury Protection (PIP) coverage, but uninsured motorist coverage requirements can vary. Check with a licensed insurance agent to confirm current requirements and whether adding this coverage makes sense for your situation.
Does uninsured motorist coverage help in a hit-and-run accident?
Yes. Uninsured motorist coverage can help cover costs if you’re in an accident where the at-fault driver flees the scene without exchanging insurance information.
