When you’re involved in a car accident, your priority is getting the medical treatment you need and making sure your expenses are covered. If you have Personal Injury Protection (PIP) or Underinsured Motorist (UIM) coverage, these benefits can be a financial lifesaver. But many drivers hesitate to use their own insurance coverage because they fear their rates will increase. So, does using PIP or UIM really make your premiums go up?
Understanding PIP and UIM Coverage
PIP Coverage: Personal Injury Protection is designed to cover medical bills, lost wages, and essential services regardless of who was at fault in the accident. In Washington State, PIP is an optional coverage unless specifically waived.
UIM Coverage: Underinsured Motorist coverage kicks in when the at-fault driver does not have enough insurance to cover your damages. It helps pay for medical expenses, lost wages, and pain and suffering when the other driver is uninsured or underinsured.
Will Using PIP Increase My Insurance Rates?
In general, using PIP should not cause your insurance premiums to increase, especially if you were not at fault for the accident. Because PIP is considered a “no-fault” benefit, your insurance company is required to pay for medical treatment and lost wages up to your policy limits without penalizing you.
However, if you have a history of multiple claims, your insurer may view you as a higher risk and could adjust your rates over time. But a single PIP claim, especially one related to an accident where you were not at fault, typically does not lead to a premium increase.
Will Using UIM Increase My Insurance Rates?
Using UIM coverage is a little different. While filing a UIM claim shouldn’t automatically increase your rates, insurance companies do track claims history. Some insurers may factor UIM claims into their rate calculations, particularly if you have a pattern of claims.
That said, Washington State law prohibits insurers from raising your rates solely because you made a UIM claim when you were not at fault. Specifically, RCW 46.52.130(2)(e)(iii) states that an insurer cannot increase your premiums for using UIM coverage when you were not responsible for the accident. Additionally, Washington law protects policyholders from rate increases due to not-at-fault accidents. Insurers cannot cancel, deny, nonrenew, or increase rates based on an accident unless the policyholder was found at fault. If your insurer tries to increase your rates after a UIM claim where you were not responsible for the accident, it may be worth disputing or shopping for a new provider. If you experience an unfair rate hike, you have the right to file a complaint with the Washington State Office of the Insurance Commissioner by visiting their complaint filing page or calling 800-562-6900 between 8:30 a.m. and 4:30 p.m., Monday through Friday..
If your insurer raises your premium unfairly after a no-fault accident, request a written explanation. If the increase seems unjustified, file a formal complaint with the Washington State Office of the Insurance Commissioner to challenge the decision.
Other Factors That Impact Your Rates
While using PIP or UIM benefits alone should not result in a rate hike, there are other factors that insurers consider when determining premiums:
- Fault Determination: If you were at fault in the accident, expect an increase in your premiums.
- Claim History: Frequent claims, regardless of type, may trigger a rate adjustment.
- Accident Severity: A minor claim may not impact your rates, but major claims could have an effect.
- Overall Market Trends: Sometimes, insurance rates increase due to broader industry trends, unrelated to your personal claims.
How to Protect Yourself from Rate Increases
If you need to use your PIP or UIM coverage but are concerned about rate increases, consider these tips:
- Consult Your Agent: Ask your insurance company about their policy regarding PIP and UIM claims.
- Keep a Clean Driving Record: A good driving history can offset any claims you make.
- Shop Around: If your rates increase unfairly, compare quotes from other insurance providers.
- Know Your Rights: Washington law protects drivers from unfair rate hikes due to UIM claims when they were not at fault. If you believe your insurer is unfairly increasing your rates, you can file a complaint with the Washington State Office of the Insurance Commissioner.
Final Thoughts
Using your PIP or UIM coverage should not be a reason to worry about skyrocketing premiums—especially if the accident was not your fault. These coverages exist to protect you, and in many cases, state laws prevent unfair rate increases. If you have concerns about your specific situation, consulting with an insurance expert or an attorney can help ensure your rights are protected while you get the coverage you deserve.