UIM and Insurance Rates

Does Filing a UIM Claim Raise Your Insurance Rates?

One worry many drivers have is: “If I use my UIM coverage, will my own insurance rates go up?” The answer for Georgia drivers is generally no, as long as the accident was not your fault. Using your UIM coverage does not count as an at-fault claim against you, because you’re claiming for an accident the other driver caused. In fact, Georgia law protects you here. By law, an insurance company cannot increase your premium or cancel your policy just because you were in an accident that you did not cause. This means if you file a UIM claim for a crash where the other driver is at fault, your insurer isn’t allowed to punish you with higher rates.

To put it simply: Insurance companies treat UIM claims differently than at-fault claims. If you cause an accident and your insurance has to pay for others’ damages, that’s an at-fault claim on your record (and yes, that can raise your rates). But a UIM claim is used when someone else caused the accident. Since you’re not to blame, it shouldn’t count against you. In fact, any payout you receive from your UIM coverage is basically an admission that you were not the negligent party in the crash.

It’s worth noting that insurance companies in Georgia are legally forbidden to add a surcharge or refuse renewal solely due to not-at-fault accidents. They also cannot drop you just because you made a UIM claim for a crash that someone else caused. The purpose of UIM coverage is to benefit you in these situations, and you have the right to use it without fear. (Of course, if you have multiple claims or accidents in a short period, even if not your fault, your insurer might review your policy for renewal – but a single UIM claim from a not-at-fault accident by itself should not raise your premium.)

So, don’t hesitate to file a UIM claim when you need to. If an uninsured or underinsured driver injures you, use the coverage you’ve been paying for. It’s there to protect you, and using it for its intended purpose won’t make your insurance suddenly skyrocket. Georgia law is on your side in this regard.