Can my insurance raise my rates for a UM or UIM claim in Arizona after an accident?

– In today’s video, we’re talking about UM or UIM insurance, which stands for uninsured motorist or underinsured motorist insurance coverage in the state of Arizona. There’s a provision under the Arizona Revised Statutes that’s very important. It’s ARS 20-263. I’m going to read the exact language from the law, but specifically what we’re looking at, what happens if you are in an accident and you are not able to recover from the party who hit you, from the party who was at fault. So they hit you, you are injured, you have property damage, you have personal injuries, but their insurance is not able to cover all of the damages. You have substantially more injuries, what do you do? Some people who come to our office, they’re very afraid of filing a claim with their own insurance. They have coverage for it, meaning they have uninsured motorist, if the other party was not insured, or underinsured motorist coverage, so if the party was not able to cover their loss, their insurance should provide for it. But they don’t want to file a claim against their own insurance. Why? Because they’re afraid that their insurance company’s going to raise their rates and they’re going to be paying for that over the rest of their lives, over the course of the rest of their lives, which of course can be very expensive. You don’t want to be paying higher insurance premiums if you were not at fault for the accident. So the law covers this. The law says under Arizona Revised Statutes 20-263, you can put this in the Internet Explorer, the Google browser, Chrome, whatever you’ve got, it’s going to show up and this is the exact language from it. So let’s read it. “No insurer shall increase the motor vehicle “insurance premium of an insured,” so that’s you, “as a result of an accident not caused “or significantly contributed to by the actions “of the insured.” One more time. “No insurer shall increase the motor vehicle “insurance premium of an insured as a result “of an accident not caused or significantly “contributed to by the actions of the insured.” The moral of the story, the lesson that we can take away from this, if you were not at fault, if you did not substantially contribute to the accident, your insurer cannot raise your premiums. They can’t do that. It’s in the law. It’s 20-263. I’m not making it up. You can look it up yourself. You can file a UM or a UIM claim and your insurance company, by law, cannot raise your rates. So what happens if they do? These insurance companies are private entities. What happens if you get an increase in rates after you file a claim? The law covers that. It says, “Any raise in rates as a result “of any accident shall be, the insurance agency, “shall notify you as to the reason for the increase.” So if you resolve a claim, they send you a bill, and your insurance rate’s increased, you have a right to be notified as to why. why did your rates go up? If there’s other reasons that the insurer can point to, things like a number of traffic tickets or something, they can identify those. But if it’s a result as a result of the accident, they cannot do it. If they do, you can actually move forward and request a refund. You can go through a government agency and get a refund. You can be reimbursed. So you can be entitled under ARS 20-263, entitled to a refund and the government can continue to do a further investigation into that insurance provider. It makes total sense. Why are you paying for that type of coverage if you are not entitled to it or if they’re going to penalize you for claiming it? The whole reason you get uninsured motorist or UIM underinsured motorist coverage is so that in the incident, in the event that a person causes an accident to you, you’re protected, you’re covered. You’re paying a premium for that. Your insurance company cannot penalize you for using what you’re paying for. It’s written in the law. It still is a question that we get all the time. People don’t want their insurance rates to go up. They’re very scared of the insurance companies, part of the reason you need an attorney if you’ve been involved in an accident. So if you have been involved in an accident and you’re considering filing a UM or a UIM claim, give our office a call. We are definitely able to review your case. We’ll see what the other provider has from the party who was at fault, we’ll review your own policy, make sure that we can get you properly compensated, make sure we can get your medical problems treated, make sure we can compensate for all your pain and suffering, and get you back on your feet. We offer free case evaluation, so give our office a call. We look forward to speaking with you soon. Thanks for watching.

Can my insurance raise my rates for a UM or UIM claim in Arizona after an accident?

A big fear many people have after they have been involved in an accident is that their insurance company is going to raise their rates, even though they are not at fault!

People pay for insurance to ensure that they are protected against loss. So, what happens if you are in an accident in which you are not at fault, but are unable to recover damages from the party that is at fault?

What is UM/UIM insurance?

UM stands for “Uninsured Motorist,” and UIM stands for “Underinsured Motorist.” These are provisions in your insurance policy that are designed to protect you from situations like the one described above.

The Uninsured Motorist clause covers you if you are in an accident with someone who is uninsured, and you are not at fault.

The Underinsured Motorist clause acts similarly, only it covers you if the other person’s insurance isn’t enough to cover the damages you’ve sustained.

What can happen if I file a UM/UIM insurance claim?

Most people are afraid of filing a claim with their own insurance company. The main reason people don’t want to do it is because they are worried that their insurance rates are going to go up.

However, Arizona law prohibits insurers from raising your rates as a result of an accident in which you were not at fault. The exact language of the law is:

No insurer shall increase the motor vehicle insurance premium of an insured as a result of an accident not caused or significantly contributed to by the actions of the insured.

  • Arizona Revised Statues § 20-263

Essentially, this means that if you are not at fault for an accident, your insurer cannot raise your insurance rates because of the accident – it’s illegal.

What should I do if my insurance provider raises my rates?

The same statute referenced above states:

Any insurer which increases the premium as a result of accident involvement shall notify the insured of the reason for such increase.

  • Arizona Revised Statutes § 20-263

The law requires your insurance company to notify you if your insurance rates are increasing because of an accident. Additionally, they must be able to point to another reason besides the accident (such as traffic tickets or other things that may affect your insurance) for raising your rates, or they are breaking the law.

If your insurance company does raise your rates, Arizona Revised Statues § 20-263(B) entitles you to a refund, and the government will investigate that insurance provider.

Why should you pay a premium for insurance coverage if you are going to be punished for using it? People tend to avoid filing claims with their insurance company because they are afraid their premiums will go up.

That is why it is critical to have an attorney if you are involved in an accident. Having someone on your side who knows how to properly navigate an insurance claim is essential.

Having an attorney will enable you to see your full range of options, have your medical damages treated, and be properly compensated for your pain and suffering.