Does Your Insurance Go Up for Uninsured Motorist Claim?
Does an uninsured motorist claim affect your car insurance rates? Understand the factors that influence premium changes.
When a motor vehicle accident occurs, drivers often worry if filing an insurance claim will increase their premiums. This concern is especially pronounced when the at-fault driver lacks insurance. Understanding the implications of filing an uninsured motorist (UM) claim on your policy is important for navigating such an incident.
Understanding Uninsured Motorist Coverage
Uninsured Motorist (UM) coverage protects policyholders when an at-fault driver has no insurance or insufficient insurance to cover damages. This coverage is important, as approximately one in eight drivers across the United States operates without any form of auto insurance. UM coverage includes two main components: bodily injury (UMBI) and property damage (UMPD).
UMBI covers medical expenses, lost wages, and compensation for pain and suffering for you and your passengers if you are injured by an uninsured driver. UMPD covers vehicle repairs or assists with a collision deductible when your vehicle is damaged by an uninsured driver. While some states mandate UM coverage, it is offered as an optional add-on in others. This coverage also extends to hit-and-run incidents where the responsible driver cannot be identified.
Factors Affecting Insurance Premiums After a Claim
Even though an uninsured motorist claim is a “not-at-fault” accident, its effect on your insurance premiums can vary. Some state regulations prohibit insurance companies from raising premiums or canceling policies for accidents where the insured was not at fault, including UM claims. However, even with such legal protections, several other factors can still influence your future rates.
Insurance companies assess risk based on an individual’s claims history; a higher number of claims generally leads to an increased perception of risk. Although a UM claim is not your fault, it still represents a financial payout by your insurer, which can be considered in subsequent premium calculations. The nature and severity of the claim also play a role; claims involving substantial medical expenses or extensive property damage can have a greater impact on rates compared to minor incidents.
Underwriting policies differ among insurance providers. One company’s response to a UM claim may not align with another’s. Some insurers might discontinue “accident-free” or “good driver” discounts after any claim, regardless of fault, which results in an effective premium increase. External factors such as changes in your credit score, the type of vehicle you drive, and even your geographic location can also influence your insurance rates. While a UM claim may result in a less significant premium increase than an at-fault accident, it remains a possibility for rates to adjust upward.
The Uninsured Motorist Claims Process
The process of filing an uninsured motorist claim begins with promptly reporting the incident to your insurance company. Most insurance policies have specific reporting deadlines; notifying your insurer as soon as possible is important to avoid potential delays or denial. You will need to provide comprehensive documentation, which typically includes a police report, photographs of the scene and vehicle damage, and witness contact information.
If injuries are sustained, detailed medical records, associated bills, and documentation of lost wages are critical for substantiating your claim. Your insurance provider will then initiate an investigation, reviewing all submitted documentation, assessing damages, and potentially interviewing witnesses. The insurer might also require you to undergo an independent medical examination to verify the nature and extent of your injuries.
During this investigative phase, the insurance company will confirm if the other driver is uninsured, often by checking state databases or directly requesting proof of insurance. Once the investigation is complete, the insurer will typically extend a settlement offer.
The negotiation phase can span several weeks to many months, depending on the claim’s complexity and the willingness of all parties to reach an agreement. If a mutually agreeable settlement cannot be reached, alternative dispute resolution methods, such as arbitration, or even legal action may be considered.