When you’re involved in an accident caused by a driver with little or no insurance, it’s natural to wonder whether your own insurance policy has you covered. This is where Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage steps in. These provisions are meant to protect you financially, but many policyholders are concerned about potential consequences, such as an insurance premium increase after filing a UM or UIM claim.
If you’re a driver in Pennsylvania, here’s good news—state laws prohibit insurers from raising premiums solely because you’ve made a UM/UIM claim. This blog will break down what UM/UIM coverage includes, how these claims work, and why understanding your policy and working with a skilled attorney can protect your rights during the process.
What Is UM/UIM Coverage?
Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage are essential components of many auto insurance policies in Pennsylvania. Here’s how they protect you:
Uninsured Motorist Coverage (UM)
UM coverage applies when:
- The at-fault driver does not have insurance, leaving you without access to the compensation you need for medical bills, lost wages, or damages.
- This coverage typically handles expenses from accidents with uninsured drivers, including hit-and-run accidents.
Underinsured Motorist Coverage (UIM)
UIM coverage kicks in when:
- The at-fault driver has liability insurance, but their coverage limits aren’t enough to cover all your damages.
- For example, if your damages total $50,000 but the at-fault driver’s insurance only covers $25,000, your UIM coverage can pay the difference—up to your policy limits.
These coverages provide a safety net, ensuring that you’re not left in financial turmoil after an accident caused by someone else’s lack of proper insurance.
UM/UIM Policies in Pennsylvania
Pennsylvania law requires insurers to offer UM/UIM coverage as part of every auto insurance policy, but it is not mandatory to carry this coverage. Policyholders can reject UM/UIM coverage in writing; however, doing so may leave you vulnerable in situations where another driver’s insurance is inadequate.
Why You Should Consider UM/UIM Coverage:
- Financial Protection: Without UM/UIM, you may be forced to pay out-of-pocket for accident-related expenses.
- Peace of Mind: These policies ensure you have a fallback plan when others don’t hold up their end of the insurance bargain.
- Minimal Cost Addition: Adding UM/UIM coverage to your policy is generally affordable compared to other types of coverage, and its benefits can far outweigh the cost.
Will Filing a UM/UIM Claim Increase My Premiums?
A major concern for many drivers is whether insurance companies will penalize them for using their UM/UIM coverage. Unlike at-fault claims, which typically lead to premium hikes, UM/UIM claims are treated differently in Pennsylvania.
Pennsylvania Law on Premium Increases for UM/UIM Claims
Under Pennsylvania state law, insurers are not allowed to increase your premium or cancel your policy for filing a UM or UIM claim. This protection exists because these claims usually arise from circumstances out of your control—another driver’s lack of insurance, not your own actions.
However, it’s important to recognize that while insurers cannot raise premiums solely due to a UM/UIM claim, they may consider other factors when determining your future rates. For example:
- Frequent claims unrelated to UM/UIM coverage may label you as a higher-risk policyholder.
- Other infractions or lapses in coverage can affect renewal terms.
How Insurers Typically Assess Risk
While Pennsylvania law protects you from direct penalties for UM/UIM claims, it’s wise to review your policy terms and stay informed about how insurers assess risks overall. Filing a UM/UIM claim doesn’t equate to negligence or fault on your part, so it shouldn’t disrupt your rates provided you have a solid driving record and consistent policy history.
Navigating the Claims Process
Filing a UM/UIM claim involves specific steps, and having an experienced attorney can help you avoid pitfalls, ensure compliance with your insurer’s requirements, and maximize your compensation.
Steps in Filing a UM/UIM Insurance Claim:
- Report the Accident
Notify your insurance company promptly, providing them with details about the crash and the at-fault driver’s insurance situation (or lack thereof).
- Document Damages
Preserve all medical records, repair estimates, and receipts related to the accident. Clear documentation strengthens your case.
- Understand Your Policy Limits
Review your UM/UIM policy’s coverage limits to know how much compensation you can recover.
- Negotiate Fairly With Your Insurer
Insurance companies often aim to settle claims quickly and for the lowest amount possible. Presenting a well-supported claim is crucial to receiving a fair payout.
How a Lawyer Can Help with UM/UIM Claims
Although the claims process might seem straightforward, disputes can arise. Insurers may undervalue claims or deny coverage based on technicalities. Here’s how a seasoned attorney can make a difference:
- Policy Review: An attorney will thoroughly evaluate your policy to determine applicable coverage and ensure you get every dollar you’re entitled to.
- Evidence Collection: Legal representation strengthens your case by collecting and analyzing crucial evidence, such as police reports and expert testimony.
- Effective Negotiation: Attorneys defend your interests, ensuring insurers don’t get away with unfair settlements.
- Litigation Expertise: If your claim is disputed, a lawyer can take legal action to enforce your rights and obtain the compensation you deserve.
Why Policyholders Should Stay Proactive
While Pennsylvania’s protections against premium hikes for UM/UIM claims help alleviate concerns, navigating insurance policies and claims can be complex. Taking proactive steps ensures smoother handling of your claim:
- Read and Understand Your Policy
Familiarize yourself with your policy’s specifics regarding UM/UIM coverage, including limits and claims processes.
- React Quickly
Filing your claim early allows your insurer to begin processing it while evidence is still fresh and accessible.
- Seek Legal Guidance
Consulting with an experienced attorney ensures that your rights are prioritized throughout the claims process.
Lee Ciccarelli and Ciccarelli Law Offices Can Help
Being involved in an accident with an uninsured or underinsured driver can be a challenging ordeal, but Ciccarelli Law Offices is here to help. Located in Pennsylvania, our legal team has extensive experience handling UM/UIM claims and fighting for policyholders’ rights against tough insurance companies.
When you work with us, you get:
- Comprehensive Policy Reviews to uncover all your eligible coverage.
- Expert Claim Preparation to present the strongest case to your insurer.
- Aggressive Representation during negotiations to obtain the maximum possible compensation.
We understand how Pennsylvania law protects claimants and will help you make the most of your UM/UIM claim without fear of unjust premium hikes.
Final Thoughts
If you’re wondering whether filing a UM/UIM claim in Pennsylvania will result in a penalty or increased premiums, rest assured that state law protects you against such actions. However, navigating the claims and ensuring you receive fair compensation requires strategy and expertise.
Contact Ciccarelli Law Offices today to schedule a consultation and discuss your UM/UIM coverage or claim. We’re here to help ensure your rights are protected every step of the way.