You probably assume that the drivers around you are all covered by insurance, just like you are. Sadly, that’s not always the case. And the truth is – when someone drives without insurance, they are not just taking a risk for themselves – they are putting the rest of us in the line of fire, too.
Let’s break it all down. Who’s driving without insurance, why do they do it, how does it affect your wallet, and – most importantly – how do you protect yourself?

Here’s the hard truth: About 1 in 7 drivers in the U.S. is uninsured. That’s over 35 million people driving around with zero coverage, according to the Insurance Research Council.

And in some states, it’s even worse. Here are a few eye-popping stats from 2022:

• California: 17.0%
• Georgia: 18.1%
• Florida: 15.9%
• Texas: 13.8%
• Colorado: 17.5%

Yes, California – you read that right. Nearly 1 in 5 cars you see on the road might not be backed by insurance.

Most uninsured drivers aren’t trying to be rebels. Sadly, many of them are just financially stuck and think dropping coverage will save them money.

According to the National Association of Insurance Commissioners:

• 82% of uninsured folks either can’t afford coverage or have a car that isn’t drivable.
• Others may be facing high premiums due to previous accidents or tickets.
• And then there is the “it won’t happen to me” crowd. (Spoiler: it often does.)

The problem? Driving uninsured saves you a few bucks in the short run – yes. However, it opens the door to legal trouble, license suspensions, and potentially thousands in medical and repair bills after a crash.

Driving without insurance is the biggest risk – but having too little coverage can still leave a big financial mess.

That’s where underinsured drivers come in. These are folks who technically have insurance, but their coverage limits are so low it might not be enough to cover the damage they cause.

For example, in California, the minimum Property Damage Liability in 2025 is just $15,000. If someone with minimum coverage totals your $40,000 car, their insurance might only pay a part of the bill – and you would be left chasing the rest.

This is why your own Underinsured Motorist (UIM) coverage matters just as much as protecting yourself against the completely uninsured.

Even if you are a responsible, fully insured driver, uninsured and underinsured drivers can impact your insurance rates.

Here’s how:

• They don’t pay into the system, so when they cause an accident, the cost often falls on insurance companies – or worse, the victim.
• Insurance providers spread the risk (and the costs), which can lead to higher premiums for all of us.
• According to Bankrate, Auto insurance rates rose about 12% last year. That’s no coincidence.

On top of that, uninsured drivers may use public resources like ambulances and emergency rooms, leaving hospitals and cities footing the bill.

Uninsured Motorist (UM) coverage is your backup plan when the other driver has nothing.

It pays for things like:

• Medical bills
• Lost wages
• Pain and suffering
• Even funeral costs (heaven forbid)

Then there’s Underinsured Motorist (UIM) coverage. This kicks in when the at-fault driver’s limits don’t fully cover your losses.

Some policies include UMPD (Uninsured Motorist Property Damage), which can pay up to $3,500 to repair your car if it’s damaged by an uninsured driver. However, it’s only available if you don’t have Collision coverage for that car.

If you do have Collision coverage, make sure your policy includes the Collision Deductible Waiver (CDW). This coverage waives your deductible when an uninsured driver causes the damage – yes, even in many hit-and-run cases. That can be a big relief when your only fault was being in the wrong place at the wrong time.

Find all coverage options that are included or are optional in Auto policy here.

• Pays up to $3,500 for damage caused by an uninsured driver
• Only available if your car does NOT have Collision coverage
• Usually doesn’t apply to hit-and-run unless the other driver is identified
• Think of it as a budget backup if you opted out of Collision

• Kicks in if you do have Collision coverage
• Waives your deductible when an uninsured driver is at fault
• Often includes verified hit-and-run situations
• A must-have if you park or drive in busy areas (hello, parking lot scrapes)

Here’s a scenario no one wants, but it happens more than we’d like: You are driving safely, then BAM – someone hits your car and takes off. No note. No license plate. Just gone.

In California, that’s legally considered an uninsured driver situation. So your Uninsured Motorist Bodily Injury (UMBI) coverage steps in to help with:

• Medical bills
• Lost wages
• Pain and suffering

And yes – UMBI covers you (the driver), not just your passengers.

If you also have Medical Payments included in your policy, it can pay out quickly regardless of fault, which is great for covering ER visits or co-pays before the full claim is processed.

Now, what about your car? That’s where it gets tricky. Unless you have Collision coverage, the repairs may not be covered. Some policies include Uninsured Motorist Property Damage (UMPD), but in California, it often doesn’t apply in hit-and-run cases – especially if the other driver isn’t identified.

If you are ever involved in a crash, here’s what to do after a car accident.

Not sure where you stand? Double-check your coverage and refer to the section above: “Let’s Break It Down – UMPD vs. CDW in California.” It’s got the quick-and-clear comparison you need.

In many states, UM/UIM coverage matches your Bodily Injury Liability limits. So, if you are covered for $100,000 per person under Liability, you’d also have $100,000 in UM coverage – unless you request something lower (not recommended).

Bottom line: You want enough to protect yourself and your passengers. It’s one of the most valuable and affordable add-ons to your Auto policy.

✅ Carry UM/UIM coverage. Even if it’s not required in your state, it’s a no-brainer.

✅ Choose higher limits – especially if you drive a nice car, carry passengers often, or live in a state with high uninsured rates (hello, California). Better yet – get an Umbrella policy!

✅ Stay covered. Driving without insurance isn’t just illegal – it’s risky and expensive.

✅ Drive defensively. Accidents happen fast. Stay alert and aware.

Uninsured and underinsured drivers aren’t just “other people’s problem.” They are something we all need to plan for. So, while you can’t control how other people drive or insure – you can protect yourself, your loved ones, and your wallet.

Got questions about UM or UIM coverage? Need a second opinion on your current policy? We’ve got you. Let’s make sure you are covered for the “what ifs” – because they happen more often than you think.