Do Uninsured Motorist Claims Raise Your Rates?

Last Updated on February 8, 2022

Uninsured motorist coverage protects you after a collision with an uninsured driver. But does an uninsured motorist claim raise your rates?

Today, we’re explaining everything you need to know about whether or not uninsured motorist claims raise your rates, including how much more you can expect to pay for car insurance after making an uninsured motorist claim.

Insurance Premiums May Rise Slightly After an Uninsured Motorist Claim

Some drivers make an uninsured motorist claim after a hit and run. Others make a claim after colliding with another driver who doesn’t have car insurance.

Generally, insurance companies will not raise rates after an uninsured motorist claim. In fact, some states forbid insurance companies from raising insurance premiums after an uninsured motorist claim, underinsured motorist claim, or comprehensive coverage claim.

However, insurance premiums may still rise slightly after an uninsured motorist claim – say, if you lose your good driver discount.

Insurers in certain states will raise premiums by 2% to 10% (roughly $30 to $150 per year) after an uninsured motorist claim, although the specific rise varies widely between states and insurers.

It’s important to note that an uninsured motorist claim will raise premiums much less than a collision claim. If you are at-fault for an accident and make a claim under your car insurance, for example, then your insurance could jump anywhere from 20% to 60% per year ($300 to $900 per year).

Some States Forbid Insurers from Raising Rates After an Uninsured Motorist Claim

Some states actually forbid insurance companies from raising rates after an uninsured motorist claim or comprehensive coverage claim.

In California, for example, Proposition 103 forbids insurance companies from raising rates after an induvial makes an uninsured motorist claims. That means your rates cannot legally go up when you make a claim.

Other states have similar laws.

In Georgia, for example, insurers may not surcharge premiums, raise rates, or cancel policies as a result of a policyholder’s involvement in a multi-vehicle accident when the policyholder is not at fault.

However, even these states have exceptions. Proposition 103 in California, for example, does not allow you to make multiple uninsured motorist claims in a short period of time.

Other Reasons Car Insurance Premiums May Rise

So you made an uninsured motorist claim and your rates rose. Why did that happen? Generally, insurance companies will raise rates if your risk status as a driver increases. Some of the factors that can affect risk include:

• Your age
• Your driving record
• The type of car you’re insuring
• Where you park your vehicle at night
• How you use your car (average mileage, daily commuting, just on weekends, etc.)

Insurance companies plug all these factors into a mathematical formula. Then, they charge premiums based on all of these risk factors.

If your rates increased after an uninsured motorist claim, then contact your insurance company and ask for justification. Ask your insurer to explain why your claim increased.

Will I Lose My Good Driver or Safe Driving Discount After an Uninsured Motorist Claim?

It’s possible that making an uninsured motorist claim will cause you to lose your good driver or safe driving discount.

Generally, insurance companies require you to be claims-free for five years to qualify for a good driver discount. That means no accidents, violations, citations, or claims within the last five years.

If you make an uninsured motorist claim and have not made a claim in five years, then you could lose your safe driver discount. In fact, this is the reason some drivers notice higher premiums after making an uninsured motorist claim: the insurance company hasn’t technically raised your rates, but the insurer has removed your good driver discount, causing premiums to rise 10% to 15%.

Contact your insurer to determine if an uninsured motorist claim will cause you to lose your safe driver discount.

Uninsured and Underinsured Motorist Coverage is Required in Some States

Uninsured and underinsured motorist coverage is optional in some states but not others:

States with Optional Uninsured/Underinsured Motorist Coverage: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Delaware, Florida, Georgia, Hawaii, Idaho, Indiana, Iowa, Louisiana, Michigan, Mississippi, Montana, Nevada, New Hampshire, New Mexico, Ohio, Oklahoma, Pennsylvania, Rhode Island, Tennessee, Texas, Utah, Washington, and Wyoming

States with Mandatory Uninsured/Underinsured Motorist Coverage:

• Connecticut ($25,000 per person, $50,000 per accident)
• District of Columbia ($25,000 per person, $50,000 per accident, and $5,000 of property damage coverage)
• Illinois ($25,000 per person, $50,000 per accident)
• Kansas ($25,000 per person, $50,000 per accident)
• Kentucky ($25,000 per person, $50,000 per accident)
• Maine ($50,000 per person, $100,000 per accident)
• Maryland ($30,000 per person, $60,000 per accident, and $15,000 in property damage coverage)
• Massachusetts ($20,000 per person, $40,000 per accident)
• Minnesota ($25,000 per person, $50,000 per accident)
• Missouri ($25,000 per person, $50,000 per accident)
• Nebraska ($25,000 per person, $50,000 per accident)
• New Jersey ($15,000 per accident)
• New York ($25,000 per person, $50,000 per accident)
• North Carolina ($60,000 per accident)
• North Dakota ($25,000 per person, $50,000 per accident)
• Oregon ($25,000 per person, $50,000 per accident)
• South Carolina ($25,000 per person, $50,000 per accident)
• South Dakota ($25,000 per person, $50,000 per accident)
• Vermont ($50,000 per person, $100,000 per accident, and $10,000 of property damage coverage)
• Virginia ($25,000 per person and $50,000 per accident)
• West Virginia ($25,000 per person and $40,000 per accident)
• Wisconsin ($25,000 per person, $50,000 per accident).

In total, 29 states do not require uninsured motorist coverage, while 21 states (and Washington D.C.) do require it.

Generally, even in states where it’s optional, uninsured/underinsured motorist coverage is a good idea. 1 in 7 drivers in America have no car insurance, and in some states, that rate is as high as 1 in 4. That means with every accident, there’s a significant chance you’ll collide with an uninsured motorist.

Final Word on Uninsured Motorist Claims

Many people make an uninsured motorist claim after a hit and run. Others make a claim after a collision with someone who doesn’t have car insurance. Approximately 1 in 7 drivers in America have no insurance whatsoever, and roughly 15% of accidents on American roads involve uninsured drivers.

Whatever your situation may be, an uninsured motorist claim should raise your deductible slightly, although it will raise it much less than a traditional collision coverage claim.