UIM and Insurance Rates

What Is UM/UIM Insurance?

Uninsured/Underinsured Motorist (UM/UIM) insurance is part of your auto insurance policy that protects you if the driver who caused the accident cannot pay for your losses. This is an optional coverage that you can add to your policy (at an additional cost) to provide extra protection in case of an accident.

Here’s what each term means:

Uninsured Motorist (UM) coverage: Protects you if you’re hit by a driver who has no auto insurance. In this case, your own insurance will pay for your injuries and damages because the other driver cannot pay at all.

Underinsured Motorist (UIM) coverage: Protects you if the driver who hit you doesn’t have enough insurance to pay for all your bills and damages. Your insurance covers the rest of the costs that the at-fault driver’s insurance cannot cover.

Will Filing a UM/UIM Claim Cause My Insurance Rates to Go Up in Georgia?

Filing a UM/UIM claim in Georgia will NOT make your insurance rates go up, as long as you were not at fault in the accident. O.C.G.A. § 33-9-40 specifically prohibits raising premiums or canceling policies due to a claim filed after a non-at-fault accident. This means you can use your Uninsured/Underinsured Motorist (UM/UIM) coverage without worrying about increased costs on your insurance policy.

Notice Requirements – Tell Your Insurer Right Away

Georgia courts say you must let your own insurance company know about a possible UM/UIM claim as soon as you can. Most policies use words like “prompt notice” or “notice within 30 days.” Waiting too long can wipe out your coverage.

If you haven’t notified your insurance company about the accident and your intent to file a UM/UIM claim, your lawyer will likely advise you to do so as soon as possible. Some people are afraid that notifying their insurance company about the accident will raise their rates, but this is not true in Georgia for UM/UIM claims.

Moreover, you insurance company can already tell that you were invovled in an accident because it will be in the nationwide C.L.U.E. claims database (insurance companies share information about accidents with each other). However, not formally notifying your insurer about the accident and your intent to file a UM/UIM claim can be a costly mistake.

When Is UM/UIM Insurance Helpful?

UM/UIM insurance is helpful in several common accident situations. Georgia law requires drivers to carry liability insurance (at least $25,000 for one person’s injuries, $50,000 per accident, and $25,000 for property damage minimum). However, these minimum limits are low and might not cover all costs in a serious crash. Also, some drivers ignore the law and drive with no insurance at all.

For example, the other driver has some insurance but not enough to cover all your medical bills or car repairs. In these scenarios, UM/UIM insurance makes sure you are not left paying out of pocket for an accident you didn’t cause. It provides peace of mind that even if the other driver is irresponsible or has low insurance, you have coverage to protect you financially.

UM/UIM claims are protected events. Georgia law also addresses uninsured motorist claims specifically. It treats a UM/UIM claim for a not-at-fault accident as a protected event that should not result in penalty. If you have a collision that isn’t your fault and you use your UM/UIM coverage, the insurance company cannot legally increase your rate, cancel your policy, or refuse to renew your policy for that single claim. In short, one uninsured motorist claim will not make your insurance price go up under Georgia law.

Multiple claims and non-renewal

While your rates are protected, your policy renewal is treated differently.

Under O.C.G.A. § 33-24-45 (e)(3)(C), an insurer may not refuse to renew your policy simply because, in the last 36 months, you have had two or fewer of any combination of these four events:

1. A not-at-fault, multi-vehicle crash (the other driver caused it);

2. A UM or UIM claim;

3. A comprehensive claim (hail, theft, deer strike, etc.);

4. A towing or road-service claim.

Generally, your first two accidents/claims that you didn’t cause (including UM claims) in a three-year period cannot be used to raise your rates or non-renew your policy. If you have several incidents, an insurer might review your policy upon renewal.

Therefore, your insurance company cannot refuse to renew your policy or raise your rates just because you filed a single UM/UIM claim after an accident that was not your fault.

Conclusion

Uninsured/Underinsured Motorist coverage is there for your protection. It helps you when the other driver can’t. In Georgia, you won’t be penalized with higher rates for doing the right thing and filing a UM/UIM claim after an accident that wasn’t your fault. UM/UIM insurance gives you peace of mind, and state law ensures your premiums stay fair when you use it. Always report accidents and use the coverage available to you – it’s the reason you have insurance in the first place, and Georgia law is on your side.