Many insured drivers, when involved in a personal injury accident with an uninsured party, are afraid to file a claim for fear of increased insurance premiums or rates. Luckily, under Tennessee law, this cannot happen.
State statute Tennessee Code Annotated section 56-7-1201(f) states the following:
“No insurer (insurance company) shall increase the automobile insurance rate or premium of an insured with uninsured motorist coverage nor cancel the coverage due solely to the payment of any claim under uninsured motorist coverage.”
In short, insurance companies are not allowed under law to raise your rates or premiums simply because you take advantage of the compensation that may be available to you during an accident with an uninsured motorist.
To quote our own Sid Gilreath, founder of Gilreath & Associates, “Most people are under the impression that if they make a claim for uninsured motorist benefits, that their insurance company will raise their rates or premiums. This is a myth and cannot happen.”
Insured drivers involved in accidents with uninsured drivers must “notify [their] own insurance company, so as not to waive benefits for medical payments and uninsured motorist coverage” and not be afraid to reap the assistance available to them.
If you ever find yourself in an accident with an uninsured driver and want to discuss your options, we’re always here to help. We’re available for contact via phone or email, or you can drop by one of our three locations across the state of Tennessee – in Knoxville, Nashville and Memphis.