TL;DR
Auto insurance rates are climbing, and many drivers are now underinsured or uninsured, putting everyone on the road at risk. If you’re hit by one of these drivers, you may be stuck with the bill—unless you have the right coverage. Make sure your policy includes uninsured/underinsured motorist coverage to protect yourself. Talk to your friendly Neighborhood Insurance Agency in Orange County, CA to review your coverage today.
As Insurance Rates Rise, So Does the Risk of Driving Uninsured
As auto insurance premiums continue to climb, more drivers are making dangerous decisions to save money: skipping insurance altogether or purchasing only the state-mandated minimum coverage.
According to a recent study by the Insurance Research Council (2023), 1 in 3 drivers in the U.S. is now underinsured or uninsured, a 10% increase since 2017 (Insurance Research Council, 2023).
🚨 What’s the Difference Between Uninsured and Underinsured?
- Uninsured: The driver has no insurance at all.
- Underinsured: The driver has insufficient coverage to fully pay for the damages they cause.
Many state-required minimums are far too low to cover serious accidents—leaving victims financially vulnerable.
Many state-required minimums are far too low to cover serious accidents—leaving victims financially vulnerable.
đź’¸ Why This Matters to You
If you’re in a crash caused by one of these drivers, and they can’t pay for the damages:
- You may not receive full compensation for medical bills, repairs, or lost wages.
- Even if your insurer pays you (via UM/UIM coverage), they may sue the at-fault driver—but that doesn’t guarantee your costs are covered quickly.
That’s why uninsured/underinsured motorist (UM/UIM) coverage is essential.
🛡️ How UM/UIM Coverage Protects You
This vital coverage ensures you’re not financially ruined by someone else’s bad decision.
- Uninsured Motorist Coverage: Kicks in if the at-fault driver has no insurance.
- Underinsured Motorist Coverage: Helps when the at-fault driver’s coverage is too low to cover the damages.
đź’ˇ Experts recommend at least $100,000 per person / $300,000 per accident in UM/UIM liability limits.
Even if your state doesn’t require this coverage, you should still carry it—especially in areas like Orange County, where accidents and rising premiums are common.
What to do now (fast checklist)
Check your policy: Do you have UM/UIM? What are the limits
- Check your policy: Do you have UM/UIM? What are the limits?
- Consider raising limits to 100/300 (or higher) and adding UM property damage if appropriate. Forbes
- Ask about discounts (bundling, telematics, safety features).
- Get a local review: NIA team can compare carriers and tailor coverage for commuters, families, students, rideshare drivers, and more—often in minutes.
âś… Final Takeaway
Insurance is about protecting yourself, not just meeting legal minimums. With 1 in 3 drivers uninsured or underinsured, now is the time to review your policy and make sure you’re covered.
đź“Ť Ready to protect yourself from the unexpected?
At Neighborhood Insurance Agency, we specialize in helping drivers throughout Orange County and beyond make smart insurance decisions. Whether you’re unsure about your current coverage or want a quote on adding UM/UIM to your policy, we are here to help.
Santa Ana, CA 92705
Reference
Insurance Research Council. (2023). One in three U.S. drivers are uninsured or underinsured. Retrieved from https://www.insurance-research.org/research-publications
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