Will Filing an Uninsured Motorist Claim or Underinsured Motorist Claim Raise My Premium in Illinois?

Filing an uninsured motorist (UM) or uninsured motorist (UIM) claim in Illinois can have various impacts on your insurance premium. Here are some factors to consider:

Impact on Premiums

1. No-Fault Nature of Uninsured Motorist and Underinsured Motorist Claims:
   • Uninsured motorist claims are typically filed when you are not at fault, as they involve accidents with uninsured drivers. Similarly, underinsured motorist claims are filed when your damages (i.e., medical bills, wage loss) resulting from an accident exceed the at-fault driver’s insurance policy limits. Because you are not at fault, your insurance company might not raise your premiums just because you filed an uninsured or underinsured motorist claim.
2. Insurance Company Policies:
   • Insurance companies have different policies regarding premium increases after a UM or UIM claim. Some insurers may still consider the overall risk profile of the policyholder and may increase premiums accordingly, while others may not.

Factors That Influence Premium Changes

1. Claim History:
   • Your history of filing claims can influence whether your premium increases. According to the Insurance Information Institute, multiple claims within a short period, regardless of fault, may lead to higher premiums.
2. Policy Terms:
   • Review the terms of your insurance policy to understand how UM and UIM claims are treated. Some policies explicitly state whether or not filing a UM or UIM claim will affect your premium.
3. State Regulations:
   • While state regulations set minimum insurance requirements, they generally do not dictate how insurers set premiums. However, state insurance departments can provide guidance on common practices within the state.

Steps to Mitigate Potential Premium Increases

1. Shop Around:
   • If your premium increases significantly after a UM or UIM claim, consider shopping around for a new insurance provider. Different companies weigh claims and risk factors differently.
2. Safe Driving Discounts:
   • Maintain a clean driving record and take advantage of safe driving discounts. Many insurers offer discounts that can help offset any potential increase in premiums.
3. Policy Review:
   • Regularly review your insurance policy with your agent to ensure you have the best coverage at the best rate. Ask specifically about how UM and UIM claims impact premiums.

Conclusion

Filing a UM or UIM claim in Illinois does not automatically mean your insurance premium will increase. However, the specific impact depends on your insurance company’s policies, your claim history, and the terms of your policy. It is advisable to consult with your insurance agent to understand how a UM or UIM claim might affect your premiums and to explore options to mitigate any potential increases.

Contact the Illinois Car Accident Lawyers at John J. Malm & Associates

If you or a loved one has been injured in a car accident caused by an uninsured or underinsured driver, contact the Naperville car accident attorneys at John J. Malm & Associates to learn more about uninsured and underinsured motorist claims and how you may be able to receive compensation for your injuries.