Will My Insurance Go Up if I Make a UM/UIM Claim in Pennsylvania?

If you live in Pennsylvania and are considering filing an uninsured motorist (UM) or underinsured motorist (UIM) claim, you might be worried about whether your insurance premiums will increase as a result. The short answer is no—Pennsylvania law prohibits insurance companies from raising your rates solely because you make a UM or UIM claim.

This article explains how this legal protection works, what UM/UIM coverage is, why it’s essential, and provides reassurance that you can file a claim without financial repercussions. Let’s break it down.

What Is UM/UIM Coverage?

Uninsured motorist (UM) and underinsured motorist (UIM) coverage are critical parts of an auto insurance policy, and here’s why:

• Uninsured Motorist (UM): This coverage applies if you are in an accident caused by a driver who doesn’t carry insurance. For example, if an uninsured driver hits your car and they can’t cover your medical bills or property damage, UM coverage steps in.
• Underinsured Motorist (UIM): UIM coverage is designed to protect you if the at-fault driver has insurance but their coverage limits aren’t high enough to cover all your damages. For instance, if your total damages amount to $50,000 and the other driver only has $25,000 in liability insurance, UIM could cover the remaining $25,000.

These forms of coverage ensure that you’re financially protected in situations caused by drivers without adequate insurance.

Why Is UM/UIM Coverage Important?

Pennsylvania, like most states, requires drivers to carry minimum auto liability insurance. However, not every driver complies with this law, and even those who do often carry only the state-mandated minimum limits, which might be insufficient to cover serious injuries or damages.

According to industry research, roughly 1 in 8 drivers in the U.S. is uninsured, and many others are underinsured. This means you could face significant financial strain if you’re in an accident with any such driver—unless you have UM/UIM coverage.

By having these protections, you’re shielded from the mistakes of other drivers. It provides peace of mind, knowing that even in worst-case scenarios, your financial stability can remain intact.

Will Filing a UM/UIM Claim Raise My Insurance Premiums?

Here’s the good news for Pennsylvania drivers. State law protects you from premium hikes related to UM/UIM claims.

Pennsylvania understands the importance of encouraging drivers to use their coverage when needed. Laws exist to prevent insurance companies from penalizing policyholders who file legitimate UM or UIM claims. To clarify:

• No Penalty for Filing: Unlike claims under collision or comprehensive coverage, which might lead to premium increases in certain situations, UM/UIM claims are treated differently. Your rates cannot be increased simply because you exercise your right to use this coverage.
• Encouraging Transparency: This protection mitigates the fear of financial penalties, encouraging drivers to file UM/UIM claims without hesitation. By ensuring insurers cannot penalize claims made from these specific coverage types, Pennsylvania law works to promote safer roads and more equitable outcomes.

How Does UM/UIM Coverage Work in Practice?

If you’re considering a UM or UIM claim, here’s a brief overview of the process:

1. Report the Accident: Notify your insurance company as soon as possible after an accident involving an uninsured or underinsured driver.
2. File a Claim: Provide all requested documentation, including any evidence of damages (e.g., medical records, repair estimates). Transparency and timely submission can expedite the claims process.
3. Your Insurance Steps In: If the at-fault driver lacks sufficient coverage, your UM/UIM policy will cover the costs up to the limits of your policy. This typically includes medical expenses, lost wages, pain and suffering, and in some cases, property damage (if you opted for that coverage).
4. Receive Compensation: Once your claim is approved, your insurance provider will issue the funds to cover the damages within your policy’s terms.

UM/UIM coverage gives you direct protection, helping you avoid lawsuits or lengthy legal battles against the at-fault driver, which could take years to resolve.

A Quick Reminder About Adequate Coverage

Although Pennsylvania protects UM/UIM claimants from premium hikes, it’s also important for you to understand your current policy. UM/UIM coverage is optional in Pennsylvania, which means you must actively choose to include it during the policy setup or renewal process.

Without UM/UIM coverage, you may be financially vulnerable in the event of an accident caused by an uninsured or underinsured driver. To ensure you’re protected, review your policy today and verify your coverage limits. A conversation with your insurance agent can help you determine whether you have adequate protection in place.

Final Thoughts

Filing a UM or UIM claim in Pennsylvania shouldn’t intimidate you. Thanks to state laws, your insurance premiums cannot be raised solely because you file this type of claim. This legal safeguard exists to empower drivers to use the protection they’ve paid for without fear of financial penalties.

However, having adequate UM and UIM coverage in place is crucial to reap these benefits. Take action now to review your auto insurance policy and ensure you have the proper coverage to safeguard yourself and your family.

Protect Yourself Today

Need help reviewing your coverage? Reach out to your insurance provider or agent to discuss updating your policy. Don’t wait until it’s too late—adequate UM/UIM coverage can make all the difference when you need it most!