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More Drivers Are Underinsured on the Nation's Roads, According to New IRC StudyUnderinsured motorist (UIM) coverage protects you if you're hit by a driver who doesn't have enough coverage to pay for the damages or injuries they caused. In 2022, more than one in seven drivers (15.7%) countrywide had insufficient coverage, according to a new Underinsured Motorists: 2017-2022 report by the Insurance Research Council (IRC), a division of The Institutes. Uninsured motorists (UM) coverage compensates accident victims for injuries or damage caused by a driver without liability insurance or from a hit-and-run driver; underinsured motorists (UIM) compensates the injured party for costs associated with injuries or property damage that exceed the at-fault driver's liability coverage. Once it is determined that the at-fault driver's insurance will not fully cover damages, the accident victim may be eligible to file a claim with their own insurance company under their UM/UIM coverage. The IRC estimates are based on UIM and bodily injury (BI) liability exposure and claim count data collected from 10 major insurers representing approximately half of the U.S. private passenger auto insurance market. The ratio of UIM-to-BI claim frequencies yields a reasonable estimate of the proportion of injury-producing accidents in which the accident victim's expenses exceeded the at-fault driver's liability limits. Key findings:
Porfilio, who is also chief insurance officer at the Insurance Information Institute (Triple-I), noted that dramatic increases in the average severity of auto injury claims since the pandemic began have spurred higher UIM rates. "Riskier behaviors like speeding and distracted driving, in combination with legal system abuse and economic inflation, all contribute to elevated UIM rates." Article: Background on Compulsory Auto /Uninsured Motorists About Insurance Research Council The Insurance Research Council (IRC), affiliated with The Institutes, is an independent, nonprofit research organization supported by leading property and casualty insurance companies and associations. IRC provides timely and reliable research to all parties involved in public policy issues affecting insurance companies and their customers. IRC does not lobby or advocate legislative positions. About The Institutes | Risk and Insurance Knowledge Group The Institutes, a leading provider of risk management and insurance knowledge solutions, offer innovative education, research, networking, and career resources, including professional designations such as the CPCU® program, leadership programs, continuing education courses, events and conferences, associations, custom solutions, publications, and assessment tools. CPCU is a registered trademark of The Institutes. All rights reserved.
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