Where do drivers lack adequate car insurance?
Each state sets its own minimum coverage requirements for auto insurance. While lower insurance limits make premiums more affordable on a month-to-month basis, they can also result in greater financial responsibility for others when an accident occurs with an uninsured or under-insured driver.
If a driver carries the minimum liability coverage for their state and causes an accident that exceeds the amount of damage covered, they are still on the hook for the excess. That said, if they are unable to pay, it may be helpful for the victim to have uninsured or underinsured motorist insurance to help make up the difference. Thus, it’s good to know how much responsibility other drivers in your city and state bear when they’re at fault for an accident; because if it’s not a lot, those costs may fall back on you.
To find the least-covered cities for auto insurance in the country, we looked at three sets of data.
- Percentage of uninsured motorists by state: The III tracks how many drivers don’t have any insurance coverage at all.
- Automobile financial responsibility limits by state: Lower coverage requirements place a greater financial burden on drivers who may not be at fault.[1]
- Accident likelihood relevant to the national average: This indicates the likelihood of bearing the financial responsibility of an accident if hit by an uninsured driver. The higher the percentage, the more likely an accident is compared to national accident rates.[2]
Discover what cities (and states, since you’ll see some patterns here) have the lowest insurance coverage and how that can affect all drivers.
Methodology
The Zebra pulled three data points to analyze the top 50 MSAs (by population) in the U.S. related to auto insurance coverage. As noted, we used state data as necessary (see sources below).
