Under President Biden, enrollment in Medicaid hit a record high and the uninsured rate reached a record low.

Donald Trump’s return to the White House — along with a GOP-controlled Senate and House of Representatives — is expected to change that.

Republicans in Washington say they plan to use funding cuts and regulatory changes to dramatically shrink Medicaid, the nearly $900-billion-a-year government health insurance program that, along with the related Children’s Health Insurance Program, serves about 79 million mostly low-income or disabled Americans.

The proposals include rolling back the Affordable Care Act’s expansion of Medicaid, which over the last 11 years added about 20 million low-income adults to its rolls. Trump has said he wants to drastically cut government spending, which may be necessary for Republicans to extend 2017 tax cuts that expire at the end of this year.

Trump made little mention of Medicaid during the 2024 campaign. The first Trump administration approved work requirements in several states, though only Arkansas implemented theirs before a federal judge said it violated the law. The first Trump administration also sought to block grant funding to states.

House Budget Committee Chair Jodey Arrington, R-Texas, told KFF Health News that Medicaid and other federal entitlement programs need major changes to help cut the federal debt. “Without them, we will watch this country sadly enter into fiscal collapse.”

Rep. Chip Roy, R-Texas, a member of the Budget Committee, said Congress needs to explore cutting federal spending on Medicaid.

“You need wholesale reform on the health care front, which can include undoing a lot of the damage being done by the ACA and Obamacare,” Roy said. “Frankly, we could end up providing better service if we do it the right way.”

Advocates for poor people fear GOP funding cuts will leave more Americans without insurance, making it harder for them to get care.

“Medicaid is an obvious target for huge cuts,” said Joan Alker, executive director of Georgetown University’s Center for Children and Families. “An existential fight about Medicaid’s future likely lies ahead.”

Medicaid, which turns 60 in July, is nearing the end of a disruptive period, after COVID pandemic-era coverage protections expired in 2023 and all enrollees had to prove they still qualified. More than 25 million people lost coverage over the 18 months after the “unwinding” began, though it has not notably increased the number of people without insurance, according to the latest census data.

The unwinding’s disruptions could pale in comparison to what happens in the next four years, said Matt Salo, former executive director and founder of the National Association of Medicaid Directors. “What we are going to see is an even bigger seismic shift in who Medicaid covers and how it operates,” he said.

But Salo said any efforts to shrink the program will face pushback.

“A lot of powerful entities — state governments, managed-care organizations, long-term care providers, and everyone under the sun who wants to do well by doing good — wants to see Medicaid work efficiently and be adequately funded,” he said. “And they will be highly motivated to push back on something they see as draconian cuts, because it could affect their business model.”

The GOP is looking at several tactics to reduce the size of Medicaid:

Shifting to block grants. Switching to annual block grants could lower federal funding for states to operate the program while giving states more discretion over how to spend the money. Currently, the government matches a certain percentage of state spending each year with no cap. Republican presidents since Ronald Reagan have sought to block-grant Medicaid with no success. Arrington said he favors ending the open-ended federal funding to states and replacing it with a set annual amount based on how many people each state has in the program.

Switching to annual block grants could lower federal funding for states to operate the program while giving states more discretion over how to spend the money. Currently, the government matches a certain percentage of state spending each year with no cap. Republican presidents since Ronald Reagan have sought to block-grant Medicaid with no success. Arrington said he favors ending the open-ended federal funding to states and replacing it with a set annual amount based on how many people each state has in the program. Cutting ACA Medicaid funding. The ACA provided financing to cover, through Medicaid, Americans with incomes up to 138% of the federal poverty level, or $20,783 for an individual last year. The federal government pays 90% of the cost for adults covered through the law’s Medicaid expansion, which 40 states and Washington, D.C., have adopted. The GOP may try to lower that funding to the same match rate the feds pay states for everyone else in the program, which averages about 60%. “We should absolutely note that we are subsidizing the healthy, able-bodied Medicaid expansion population at a higher rate than we do the poorest and sickest among us, which was the original intent of the program,” Arrington said. “That’s not right.”

The ACA provided financing to cover, through Medicaid, Americans with incomes up to 138% of the federal poverty level, or $20,783 for an individual last year. The federal government pays 90% of the cost for adults covered through the law’s Medicaid expansion, which 40 states and Washington, D.C., have adopted. The GOP may try to lower that funding to the same match rate the feds pay states for everyone else in the program, which averages about 60%. “We should absolutely note that we are subsidizing the healthy, able-bodied Medicaid expansion population at a higher rate than we do the poorest and sickest among us, which was the original intent of the program,” Arrington said. “That’s not right.” Lowering federal matching funds. Since Medicaid began, the federal match rate has been based on the relative wealth of a state’s population, with poorer states receiving a higher rate and no state receiving less than a 50% match. Ten states get the base rate — all but two are Democratic-run states, including New York and California. The GOP may seek to cut the base rate to 40% or less.

Since Medicaid began, the federal match rate has been based on the relative wealth of a state’s population, with poorer states receiving a higher rate and no state receiving less than a 50% match. Ten states get the base rate — all but two are Democratic-run states, including New York and California. The GOP may seek to cut the base rate to 40% or less. Adding work requirements. During the first Trump term, federal courts ruled that Medicaid law doesn’t allow coverage to be conditioned on enrollees’ working or seeking jobs. But the GOP may try again. “If we can get strict work requirements on able-bodied adults, that can be a huge cost savings by itself,” Rep. Tom McClintock, R-California, told KFF Health News. Because most Medicaid enrollees already work, go to school or serve as caregivers, critics say such a requirement would simply add red tape to obtaining coverage, with little impact on employment.

During the first Trump term, federal courts ruled that Medicaid law doesn’t allow coverage to be conditioned on enrollees’ working or seeking jobs. But the GOP may try again. “If we can get strict work requirements on able-bodied adults, that can be a huge cost savings by itself,” Rep. Tom McClintock, R-California, told KFF Health News. Because most Medicaid enrollees already work, go to school or serve as caregivers, critics say such a requirement would simply add red tape to obtaining coverage, with little impact on employment. Placing enrollment hurdles. About 10 states offer some populations what’s called continuous eligibility, whereby people stay enrolled for years without having to renew their coverage. That policy’s been shown to prevent enrollees from falling out of the program for short periods because of hardships or paperwork problems, which can lead to surprise medical bills

If the GOP’s plans to shrink Medicaid are realized, Democrats and health experts say, low-income people forced to buy private insurance would face challenges paying monthly premiums and the large copayments and deductibles common to commercial plans that typically don’t exist in Medicaid.

The Paragon Health Institute, a leading conservative think tank run by former Trump adviser Brian Blase, has issued reports saying the billions in extra money states took to expand Medicaid under the ACA has been a boon to private insurers that manage the program and relatively wealthier people it says shouldn’t be enrolled.

Josh Archambault, a senior fellow with the conservative Cicero Institute, said he hopes the Trump administration holds states accountable for overpaying providers and enrolling people in Medicaid who are not eligible. Conservatives have cited CMS reports saying states improperly pay Medicaid providers billions of dollars a year, though the federal government notes that is mostly due to lack of documentation.

He said the GOP will look to scale back Medicaid to its “traditional” populations of children, pregnant women and people with disabilities. “We need to rebalance the program that most people think is underperforming,” he said. Most Americans, including large majorities of both Republicans and Democrats, view the program favorably, according to polls.

KFF Health News is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF — the independent source for health policy research, polling and journalism.

The Affordable Care Act (ACA) expanded health insurance coverage by extending Medicaid coverage to nearly all adults with incomes up to 138% of the federal poverty level (FPL) ($20,783 for a single individual in 2024) and by creating new health insurance Marketplaces through which individuals can purchase private insurance coverage with financial help to afford premiums and cost-sharing. Marketplace subsidies are available for individuals not eligible for Medicaid with incomes above 100% FPL. The Medicaid expansion was originally mandatory for states, but expansion became effectively optional after a Supreme Court decision in 2012. States can opt to provide more affordable coverage to individuals who would otherwise be eligible for Marketplace coverage with incomes between 133% and 200% FPL through a Basic Health Program (BHP). In 2024 Minnesota had a BHP plan, Oregon newly implemented a BHP on July 1, 2024, and New York had a BHP until April 2024 when it transitioned to provide the same coverage to individuals with incomes up to 250% FPL through the state’s Essential Plan (EP).

In total, 2024 ACA enrollment (including Marketplace, Medicaid expansion, and BHP) reached 44 million, or 16.4% of the nonelderly U.S. population. In 2024, Marketplace enrollment hit a new record high, of 21.4 million people (almost double the 11 million people enrolled in 2020), Medicaid expansion enrollment was 21.3 million (a 41% increase from 2020), and BHP enrollment in 2024 was 1.3 million (up from 880,000 in 2020).

Marketplace growth since 2020 can be largely attributed to enhanced subsidies made available by the American Rescue Plan Act (ARPA) in 2021 and renewed through 2025 under the Inflation Reduction Act (IRA). These enhanced subsidies significantly reduced premium payments across the board for ACA Marketplace enrollees – including $0 monthly premiums for enrollees with incomes up to 150% FPL – and made some middle-income people who had previously been priced out of coverage newly eligible for financial assistance. Medicaid expansion enrollment increased due to seven states newly implementing expansion in 2020 or later and adoption of the continuous enrollment provision, a pandemic-era policy that prohibited states from disenrolling people from Medicaid in exchange for enhanced federal funding. Even with the unwinding of the continuous enrollment provision starting April 1, 2023, enrollment in the Medicaid expansion today is higher than it was in 2020.

The uninsured rate hit an historic low in 2023 as coverage through the ACA and Medicaid increased, but these coverage gains may not last for long. If enhanced subsidies are not renewed by Congress and are instead allowed to expire at the end of 2025, ACA enrollee premium payments are expected to increase by over 75% on average, and the Congressional Budget Office (CBO) estimates that the number of people who are uninsured will increase by 3.8 million, on average, in each year over the 2026-2034 period. In addition, potential Congressional efforts to lower the Medicaid expansion match rate from the current 90% rate could reduce federal spending but would shift costs to states and likely result in decisions by many states to terminate coverage. About 4.3 million Medicaid expansion enrollees live in states with some type of trigger law that would end Medicaid expansion or require review of expansion coverage to mitigate increases in state costs if federal funding for the expansion is reduced. There is also potential for deeper cuts to the ACA and Medicaid to help offset increases in the deficit if expiring tax cuts are extended.

While 1 in 6 nonelderly people in the U.S. had some form of ACA coverage in 2024, there was significant variation across states. More than 1 in 5 nonelderly people in seven states (Louisiana, Oregon, Florida, New York, California, New Mexico, and Vermont) and the District of Columbia had ACA coverage through Medicaid expansion, Marketplace, or BHP in 2024. Meanwhile, fewer than 1 in 10 nonelderly residents of five states (Alabama, Kansas, Tennessee, Wisconsin, and Wyoming) had coverage through one of these three ACA programs (Figure 1). With the exception of Florida, the states with the largest ACA enrollment as a share of population had adopted the Medicaid expansion. The five states with the lowest share of enrollment were Medicaid non-expansion states.

From 2020 to 2024, total enrollment in ACA programs (Medicaid expansion, Marketplace, and Basic Health Plan) increased by nearly 60%, with the largest increase among Marketplace enrollees. Growth in Marketplace enrollment from 2020 can be largely attributed to the temporary enhanced subsidies that were made available in 2021 and extended through 2025. Marketplace enrollment growth was greatest among states that have not expanded Medicaid. Meanwhile, Medicaid expansion enrollment similarly increased due to more states implementing expansion (seven states — Idaho, Missouri, Nebraska, North Carolina, Oklahoma, South Dakota, and Utah — implemented Medicaid expansion during or after 2020), and because of the pause in disenrollments from the continuous enrollment provision. Even with the unwinding of the Medicaid continuous enrollment provision that was still in play through March 2024, enrollment in Medicaid expansion is currently higher than it was in 2020. The number of Marketplace enrollees increased by 10 million people nationally, almost doubling, between 2020 and 2024, and the number of Medicaid expansion enrollees increased by 6.2 million people. In 2024, Marketplace consumers made up 49% of all people enrolled in ACA coverage compared to 42% in 2020 (Figure 2).

From 2020 to 2024, the rate of growth in ACA enrollment varied widely by state, more than doubling in some states while changing very little in others. Enrollment across the three ACA programs more than doubled from 2020 to 2024 in twelve states: Missouri (243%), Oklahoma (227%), Texas (212%), Mississippi (190%), North Carolina (185%), Georgia (181%), Tennessee (177%), South Carolina (167%), South Dakota (155%), Alabama (141%), Florida (120%), and Nebraska (113%, Figure 3). Meanwhile, other states saw less than 20% growth over those four years: Washington (19%), Rhode Island (18%), Kentucky (17%), Colorado (17%), the District of Columbia (16%), Montana (14%), New Mexico (11%), and Massachusetts (10%).

Of the ten states with the largest increase in ACA program enrollment from 2020 to 2024, all were won by President Trump in the 2024 election, and none had expanded Medicaid before 2020. In non-expansion states, individuals with incomes between 100% and 138% FPL are eligible for subsidized Marketplace coverage, and with the enhanced subsidies making the coverage more affordable by providing coverage with $0 premiums, more people enrolled. All non-expansion states, except Wisconsin, and all states that adopted Medicaid expansion in 2020 or later, except Idaho, had increases in ACA enrollment that exceeded the national increase of 61%. (Wisconsin Medicaid eligibility extends to 100% FPL so there is no coverage gap.) Meanwhile, many of the states with lower enrollment growth over the last four years have long embraced the ACA (adopting Medicaid expansion early on and creating their own state-based Marketplaces), so they started out with relatively high shares of their populations already enrolled in ACA coverage in 2020 (Table 1).

ACA Marketplace enrollment has reached a record-high for a fourth year in a row, totaling 24.3 million people in 2025. Much of this growth can be attributed to the enhanced subsidies first made available by the American Rescue Plan Act (ARPA) in 2021 and later extended through the end of 2025 by the Inflation Reduction Act (IRA). Since 2020, enrollment in the Marketplaces has more than doubled, growing by 12.9M (a 113% increase) from 11.4M to 24.3M.

Where Have ACA Marketplaces Grown the Most?

Almost all states have seen increases in enrollment, but some have seen more growth than others. Enrollment has more than tripled in Texas (255% growth), Mississippi (242%), West Virginia (234%), Louisiana (234%), Georgia (227%), and Tennessee (221%). In total, 20 states since 2020 have seen their Marketplaces more than double.

A few states (New York, Oregon, and the District of Columbia) saw their Marketplaces shrink since 2020. These states are unusual because they have expanded programs (e.g. Basic Health Plan, high Medicaid eligibility). Low-income enrollees who would typically be part of the ACA Marketplace instead receive coverage from one of these expanded programs.

As of 2025, 88% of the total growth in the Marketplaces since 2020 (11.4M out of 12.9M new enrollees) is from states President Trump won during the 2024 election. On average, states that voted for President Trump have seen Marketplace enrollment grow by 157% while states that voted for former Vice President Harris saw a 36% increase in Marketplace enrollment.

The top 15 states with the most growth in the ACA Marketplace since 2020 were all won by President Trump in 2024. An earlier KFF analysis showed that states that had not expanded Medicaid and those that started off with high uninsured rates saw the most growth in ACA Marketplace enrollment. In states that currently have not expanded Medicaid, Marketplace enrollment has grown 188% from 2020 to 2025 compared to 65% growth in expansion states. In states where uninsured rates for children and adults under 65 were at least 10% in 2019, ACA Marketplace enrollment increased by 168% since 2020, whereas states with lower uninsured rates saw enrollment grow by 50%.

What is Next for the Enhanced Premium Tax Credits?

Enhanced tax credits, which have fueled much of the growth in the Marketplaces, are set to expire at the end of this year unless Congress votes to extend them. The enhanced tax credits have increased the affordability of coverage and newly extended financial assistance to middle-income enrollees making above 400% of poverty. Had it not been for the enhanced subsidies, annual premium payments for subsidized enrollees in 2024 would have been $705 (79%) higher, on average, up from $888 to $1,593.

The CBO estimates that the cost of permanently extending the enhanced subsidies would be $335 billion over a 10 year period. If the enhanced subsidies are not renewed, it is expected that 3.8 million more people would become uninsured. Additionally, CBO projects that the loss of enhanced subsidies would prompt healthy enrollees to leave the ACA Marketplace and, consequently, insurers to increase the sticker price of premiums.

Finding room in the monthly budget for car insurance payments has become a headache for many Americans over the past few years. With the average cost of full coverage at $205 per month as of November 2024, affordability could be one of the reasons why there are so many uninsured drivers on the road today. In addition to being illegal in almost every state, driving without insurance increases the cost of car insurance even more for those who are insured. Bankrate compiled the most up-to-date statistics on uninsured and underinsured motorists, plus tips on how to keep yourself financially protected behind the wheel.

Auto Insurance Guide Icon Uninsured motorist statistics About one in seven drivers, or 14%, was uninsured in 2022. ( Insurance Research Council – IRC)

This is up from 11.16% of motorists who were uninsured in 2017. (IRC)

Washington, D.C. has the highest percentage of drivers who are uninsured at 25.2%.

Wyoming has the lowest percentage of uninsured drivers at 5.9%. (IRC)

In 21 states and Washington, D.C., uninsured motorist coverage is mandatory; however, some states allow drivers to reject the coverage in writing.

How many people drive without insurance?

According to the Insurance Research Council (IRC), 14 percent of drivers were uninsured in 2022. Based on AAA’s 2022 American Driving Survey, there are about 255 million drivers, which means around 35.7 million people are driving without insurance. Driving stats change each year, and studies show that uninsured driving was trending downward until it jumped from around 11 percent in 2019 to approximately 14 percent in 2020.

The peak of the recent spike in uninsured driving was in 2021 at 14.2 percent — the highest recorded amount since 2008’s 14.3 percent. While the average national rate of uninsured motorists was 14 percent as of 2019, 19 states and Washington, D.C. have uninsured motorist rates that are higher than the national average.

How do uninsured motorists impact me?

Like almost everything else, the average cost of auto insurance increased in recent years. According to data from Quadrant Information Services, the average annual cost of a full coverage car insurance policy rose 20 percent from June 2022 to June 2024. For anyone on a tighter budget, increased insurance costs could be the final straw that pushes them to drive without coverage. According to the American Association of Motor Vehicle Administrators, 82 percent of uninsured drivers either cannot afford car insurance or have a vehicle that is inoperable or unused.

Drivers who forgo insurance directly impact the cost of car insurance for everyone else. That’s because uninsured drivers still cause accidents; they just aren’t sharing in the burden of risk. Put simply, car insurance premiums are pooled together to share when an accident occurs. When people do not contribute to the pool and drive uninsured, the cost to cover accidents increases for those paying car insurance. IRC President Dale Porfilio summarizes: “The pandemic appears to have caused a jump in the percentage of drivers choosing to forgo required insurance, adding to the insurance costs for everyone else.”

What is uninsured motorist coverage?

Uninsured motorist coverage (UM) helps pay for the damage caused by another driver who doesn’t carry car insurance. UM is required by law in some states and optional in others. States often offer underinsured motorist coverage (UIM) as well, which helps pay for damages when another driver causes bodily injury but their insurance limits are insufficient.

For example, say someone driving with state minimum liability limits of 25/50 hits you and causes $40,000 in bodily injury. Their insurance would only pay $25,000, but your UIM coverage would kick in and cover the additional $15,000. Some states also offer uninsured motorist property damage coverage or UMPD, which helps pay to repair or replace your vehicle if an uninsured driver damages it.

The financial impact of UM coverage beyond car insurance

To protect yourself financially from a collision with an uninsured driver, many insurance experts recommend UM/UIM coverage. Without UM/UIM coverage, you and your passengers would need to rely on other parts of your auto policy or your health insurance for payments toward medical care from a car accident. Coverage types like personal injury protection (PIP) and medical payments (MedPay) can help cover the cost of medical expenses resulting from a car accident with an uninsured driver, but PIP usually has a deductible, and both PIP and MedPay usually have much lower limits than UM coverage.

Additionally, UM does not have a deductible. Drivers with high-deductible health insurance plans may want to pay extra attention to UM coverage and speak to their agent for advice. According to the U.S. Bureau of Labor Statistics, the average median health insurance deductible for private industry workers was $2,500 in 2023. The latest stat on the cost of UM/UIM coverage is from 2016, but the IRC shows that it is around $78 per insured vehicle. Having a detailed conversation with your insurance agent about the cost and limits of UM/UIM, PIP and medical payments can help you select the right type and level of coverage — and could save you money in the long run.

Auto Insurance Guide Icon How much uninsured motorist coverage do you need? Depending on where you live, you may already carry uninsured motorist coverage as a part of your state’s minimum insurance requirements. Typically, UM coverage is equal to the amount of your bodily injury liability limits. While some states allow drivers to adjust their UM limits to be lower than their bodily injury limits, keep in mind that this coverage is for you and your passengers. Ideally, it makes sense to financially protect yourself as much as you are willing to financially protect others.

Uninsured motorists by state

From 2015 to 2019, the national average rate of uninsured drivers fluctuated by 1.2 percent at the most, and rates hovered around the 12 percent mark. However, the state-by-state data tell a different tale. Some states, like Michigan and Delaware, actually saw decreased rates of uninsured drivers over the four-year period. On the other hand, Washington, Rhode Island and Mississippi saw increases of nearly 7 percent. Below are the uninsured motorist rates by state for 2022 (the most recent year data exist), according to the Insurance Information Institute (Triple-I):

States with the most uninsured drivers:

Washington, D.C.: 25.2 percent New Mexico: 24.9 percent Mississippi: 22.2 percent Tennessee: 20.9 percent Michigan: 19.6 percent

States with the fewest uninsured motorists:

Wyoming: 5.9 percent Maine: 6.2 percent Idaho: 6.2 percent Utah: 7.3 percent New Hampshire: 7.8 percent

What states require uninsured/underinsured motorist coverage?

Surprisingly, many states in the U.S. do not require uninsured or underinsured motorist coverage by law. Currently, only 21 states and Washington, D.C. mandate some form of this type of auto coverage. In those that do, the required amount of coverage varies. For example, some states require bodily injury coverage; some require property damage coverage.

Although you will not be able to buy a policy that doesn’t comply with your state’s minimum car insurance laws, understanding coverage requirements can help you decide if you need to fill a gap in your policy.

State-by-state requirements for uninsured/underinsured motorist coverage Caret Down Icon State Uninsured coverage required Underinsured coverage required Bodily injury per person Bodily injury per accident Property damage Bodily injury per person Bodily injury per accident Property damage Connecticut $25,000 $50,000 $25,000 $50,000 District of Columbia $25,000 $50,000 $5,000 with $200 deductible Illinois $25,000 $50,000 Kansas $25,000 $50,000 $25,000 $50,000 Maine $50,000 $100,000 $50,000 $100,000 Maryland $30,000 $60,000 $15,000 Massachusetts $20,000 $40,000 Minnesota $25,000 $50,000 $25,000 $50,000 Missouri $25,000 $50,000 Nebraska $25,000 $50,000 $25,000 $50,000 New Hampshire $25,000 $50,000 $25,000 $25,000 $50,000 $25,000 New Jersey* $25,000 $50,000 $20,000 $50,000 New York $25,000 $50,000 North Carolina** $30,000 $60,000 $25,000 $30,000 $60,000 North Dakota $25,000 $50,000 $25,000 $50,000 Oregon $25,000 $50,000 South Carolina $25,000 $50,000 $25,000 with $200 deductible South Dakota $25,000 $50,000 $25,000 $50,000 Vermont $50,000 $100,000 $10,000 with $150 deductible $50,000 $100,000 $10,000 with $150 deductible Virginia*** $25,000 $50,000 $20,000 with $200 deductible $25,000 $50,000 $20,000 with $200 deductible West Virginia $25,000 $50,000 $25,000 Wisconsin $25,000 $50,000 *New Jersey limits are based on the “standard policy” minimum coverage requirements for current coverage. These limits reflect the increase that took place in January 2023. New Jersey’s minimum limits will increase again in January 2026 to 35/70/25 for liability and 35/70 for UM/UIM. **North Carolina policies effective on or after Jan. 1, 2025, will have increased UM coverage minimums of 50/100. ***Virginia policies effective on or after Jan. 1, 2025, will have increased UM coverage minimums of 50/100.

How to protect yourself from uninsured motorists

You cannot control whether or not someone chooses to purchase car insurance. While that can be a daunting thought, here are some ways to financially protect yourself from uninsured motorists.

Carry uninsured/underinsured motorist coverage: If it is not already a part of your car insurance policy, you might want to add uninsured/underinsured motorist coverage. Or, if your state requires you to carry this kind of coverage, you might want to double-check the limits of your policy. Very few states require drivers to carry uninsured/underinsured property damage coverage, and it may be worth adding.

If it is not already a part of your car insurance policy, you might want to add uninsured/underinsured motorist coverage. Or, if your state requires you to carry this kind of coverage, you might want to double-check the limits of your policy. Very few states require drivers to carry uninsured/underinsured property damage coverage, and it may be worth adding. Consider an umbrella policy: An umbrella policy offers added liability coverage when the policy limits associated with your car insurance, home insurance or other forms of insurance are not high enough to cover the damage. Causing a car accident can mean big expenses, and having an umbrella policy may give you added peace of mind. However, you may need to verify that your umbrella policy applies to uninsured drivers, as some policies do not include coverage for this.

An umbrella policy offers added liability coverage when the policy limits associated with your car insurance, home insurance or other forms of insurance are not high enough to cover the damage. Causing a car accident can mean big expenses, and having an umbrella policy may give you added peace of mind. However, you may need to verify that your umbrella policy applies to uninsured drivers, as some policies do not include coverage for this. Practice safe driving habits: The best way to avoid dealing with an uninsured motorist is to avoid an accident in the first place. Eliminate driving distractions and stay alert behind the wheel.

Frequently asked questions

What percentage of drivers are uninsured? Caret Down Icon An IRC report found that 14 percent of drivers nationwide drove without car insurance in 2022. The percentage of uninsured drivers varies widely based on where you live. For instance, in Mississippi and Michigan, more than one in four drivers do not have insurance. States like Wyoming, Maine and Idaho, however, report uninsured driver rates of around 6 percent.

Why do people drive without insurance? Caret Down Icon Budget constraints are a primary motivator for people driving without insurance. Although finding cheap car insurance may be possible (especially if you only carry state minimum coverage), for some drivers, even the cheapest policies are out of reach. Inflation is pushing some people beyond their financial means, which could contribute to a higher number of drivers forgoing auto coverage.

Do any states allow you to drive without insurance? Caret Down Icon New Hampshire is the only state where you are not legally required to purchase a car insurance policy to drive on public roads. Virginia used to allow drivers to pay an uninsured motorist fee instead of buying coverage, but the state recently voted to discontinue that option.

Being the victim of a hit-and-run can be an unpredictable and stressful experience, but Virginia is taking steps to minimize these incidents. The state recently enacted a new law mandating that all drivers carry insurance, eliminating the previous option to forgo coverage by paying a fee. This change aims to reduce the number of uninsured drivers on the road, which, in turn, is expected to decrease the incidence of hit-and-run accidents, as drivers should be less likely to panic and flee the scene due to not having insurance. Even so, knowing what coverage types and levels to include on your insurance policy and what procedures to follow after a hit-and-run in Virginia might help ensure your insurance claim gets approved.

Hit-and-runs in Virginia

By definition, a hit-and-run accident is where the at-fault party flees the scene of the accident. This can apply to fleeing an accident from a moving collision or even hitting a parked car. In 2022, there were over 122,000 car accidents in Virginia. Among these, 5,517, or 2.5 percent of the total, were ruled as hit-and-runs.

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Powered by Coverage.com (NPN: 19966249) Advertising disclosure This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions. Insurance disclosure Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. Compare auto insurance rates Answer a few questions to see personalized rates from top carriers. Are you currently insured? Are you insuring multiple vehicles? Are you a homeowner? ZIP Code Location Pin Icon Your information is kept secure Continue Powered by Coverage.com (NPN: 19966249) Advertising disclosure This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions. Insurance disclosure Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

Virginia hit-and-run laws

Virginia hit-and-run laws dictate that any driver involved in an accident where an injury or property damage (including to a vehicle) must stop. Not stopping results in serious penalties, including being charged with a misdemeanor if the damage to the property is less than $1,000. If the accident has a serious injury, death or property damage greater than $1,000, it is classified as a Class 5 felony. A Class 5 felony results in jail time for up to one year and a $2,500 maximum fine, or both.

How hit-and-runs impact car insurance rates in Virginia

Hit-and-runs impact all parties involved in the accident, regardless of whether you were a victim or the person charged. If you received a hit-and-run charge in Virginia, the consequences can be more serious. However, car insurance premiums will most likely increase for both the victim and the at-fault driver.

As the victim of a hit-and-run, you would still likely need to file a claim, depending on the severity of the damage. Filing a claim is likely to make your car insurance rates increase for a while, though how much depends on the size of the claim.

On the other hand, the at-fault driver, if caught, would be charged with a hit-and-run, which is considered a misdemeanor or a felony, depending on the damages incurred. You might also be classed as a high-risk driver if you are convicted of a hit-and-run, which will raise your car insurance rates substantially. Additionally, you may be required to file an SR-22 certificate with the state as proof of insurance if your current policy is canceled after your conviction for a hit-and-run accident in Virginia.

4 steps to take after a hit-and-run accident in Virginia

There are several critical steps to remember immediately following a hit-and-run accident. While this is a stressful experience, staying focused on the next steps will help you navigate a difficult situation.

Call for medical help immediately if there are injuries. Your safety and that of your passengers should be your first priority. Even if you are not in pain, you may want to consider calling a medical professional if there are even minor injuries. Call the police. Getting the police involved is generally advisable so you have a documented record of what happened, especially if your car was hit when you weren’t around to witness it. The police can interview witnesses and document important evidence of what happened, which will also prove helpful if you file an insurance claim. Take your own photos and gather any evidence. Taking photos of your vehicle and the surrounding area right after the damage occurred can be very helpful after you file a car insurance claim, or even for a potential criminal trial for the person who hit your vehicle. If you do not have your phone, writing down a detailed description of any damage, time of day, weather and road conditions, could also be helpful. If there are witnesses, ask for their contact information (or ensure the police do). File an insurance claim. Filing an insurance claim right away is the best course of action if you are going to file one. Your insurance agent can walk you through the process and review your coverage so you can understand what’s next.

Will insurance cover a hit-and-run?

As of July 1, 2024, Virginia car insurance laws no longer allow drivers to opt out of purchasing car insurance by paying a $500 annual fee. Under the new law, all Virginia drivers must carry an insurance policy with at least $30,000 bodily injury liability per person, $60,000 bodily injury liability per accident and $20,000 property damage liability. Once the calendar turns to 2025, these limits will be increased to 50/100/25 for the respective coverage types.

Now, a state-minimum policy with liability car insurance likely won’t do you any good in a hit-and-run since you’ll be unable to seek compensation from the at-fault driver’s insurance provider — unless, of course, they are identified in the police investigation. However, if they aren’t identified, uninsured motorist (UM) coverage could be your backup plan. This optional coverage can cover repair expenses and medical costs stemming from an accident with an uninsured driver. The new law also enables Virginia drivers to receive more compensation from UM coverage than before, so it’s certainly worth consulting with your insurance agent about including it in your policy.

Additionally, if you choose to carry collision coverage, it could help cover damage to your vehicle as a result of the hit-and-run. Collision coverage helps cover costs for repairs, or possible replacement, to a damaged vehicle after a covered loss.

Frequently asked questions

How much does car insurance cost in Virginia? Caret Down Icon As of October 2024, the average cost of car insurance in Virginia is $2,098 annually for a full coverage policy in Virginia, a fair bit below the national average of $2,388 per year for the same policy type and limits. Your actual cost will vary, as car insurance premiums are based on several factors , such as your age, driving record and marital status.

How do I find cheap car insurance in Virginia? Caret Down Icon Finding cheap car insurance in Virginia may be harder or easier for you, depending on your personal situation. Numerous factors, such as the make and model of your vehicle and your driving record will be used to calculate your car insurance rate, and every company calculates premiums differently. Typically, the best way to find cheap car insurance for you is to select a few companies to get quotes from to compare. It also pays to inquire about which discounts you may be eligible for to ensure you are getting the best rate possible for you.

What is the best car insurance in Virginia? Caret Down Icon When shopping for auto insurance, bear in mind that there is no single best insurance company . Car insurance is highly personalized—what you’re looking for in a provider might be different from what another driver values. For instance, if you have a young driver in your household, you might shop for a provider who offers good student discounts or you might look for providers writing inexpensive policies if you’re on a tight budget. A driver with a DUI might look for an insurance company that specializes in covering high-risk drivers. Evaluating your insurance needs, requesting several quotes and reading customer reviews can help you determine some of the best insurance providers for you.