Why did my car insurance go up when I had no claims?

Your premium can increase even without claims due to statewide rate changes, higher vehicle repair costs, increased local claim activity, changes in credit-based insurance scores where permitted, lost discounts, address changes, or updates to your vehicle's risk rating.

Can insurance raise rates without telling me?

Insurance companies generally provide renewal notices that show your new premium before the next policy term begins. Notification requirements vary by state, so it is important to review all renewal documents before your payment due date.

Does credit affect car insurance?

In many states, insurers may use credit-based insurance scores as part of underwriting and rating decisions. Some states restrict or prohibit the use of credit information. According to the National Association of Insurance Commissioners (NAIC), most auto and homeowners insurers use credit-related data where permitted by law.

Will my rate go down if I stay with the same company?

Possibly, but staying with the same insurer does not guarantee lower premiums. Your rate can change because of company-wide pricing adjustments, claims trends, available discounts, driver information, vehicle factors, and coverage selections.

Is it better to lower coverage to save money?

Reducing coverage can lower your premium, but it may also increase your financial risk after an accident. Before reducing liability limits or vehicle protection coverage, consider reviewing deductible options, available discounts, and alternative ways to reduce costs.

How often should I compare car insurance quotes?

It is generally recommended to compare auto insurance quotes at least once a year. You should also shop for new quotes after major life changes such as moving, adding a driver, purchasing a vehicle, or receiving a significant premium increase at renewal.

Uninsured vs. Underinsured Motorist Coverage: Compare

Additional Interest vs. Additional Insured on Car Insurance

Reviewed by the AtozInsuranceusa editorial team.

Uninsured motorist coverage, or UM, can protect you when an at-fault driver has no applicable liability insurance. Underinsured motorist coverage, or UIM, can help when that driver has insurance but not enough to cover your eligible losses. Compare injury limits, vehicle damage protection, deductibles, payment rules, stacking, and exclusions.

Do not compare the price alone. Two policies labeled “UM/UIM” can cover different losses or calculate benefits differently. Some states combine these protections; others separate them or require only certain parts.

Start with these questions:

Does the quote cover bodily injury, vehicle damage, or both?
What is the limit per person and per accident?
Does another driver’s payment reduce available UIM benefits?
Can limits from more than one vehicle or policy be combined?
What happens in a hit-and-run?
Who qualifies as an insured person?
Which deductibles and claim conditions apply?

Your liability insurance addresses harm you cause to others. UM/UIM addresses certain losses caused by a driver with missing or inadequate insurance. Buying one does not replace the other.

State law and policy wording control the details. Ask a licensed agent to compare the actual endorsements and any rejection forms before you choose.

What Is the Difference Between Uninsured and Underinsured Motorist Coverage?

The difference begins with the insurance available from the driver responsible for the crash.

Question	Uninsured motorist coverage	Underinsured motorist coverage
Main problem	No applicable liability insurance	Liability insurance is insufficient
Possible injury benefits	Covered medical costs and other eligible injury damages	Eligible injury losses beyond available liability coverage, subject to UIM rules
Possible vehicle benefits	Available where property damage coverage applies	Available where underinsured property damage coverage applies
Does fault matter?	Yes	Yes
Is every loss covered?	No	No
What changes by state?	Requirements, covered losses, limits, exclusions, and procedures	Those details plus benefit triggers and payment offsets

Progressive explains that UM/UIM can include separate injury and property damage protections, depending on the state. A quote showing injury coverage does not prove it also covers your car.

For example, an uninsured driver rear-ends your vehicle. UM injury coverage may respond to covered injuries. Your car repairs require a separate review of collision or applicable uninsured motorist property damage coverage.

How Common Are Uninsured and Underinsured Drivers?

The Insurance Research Council estimated that 15.4% of drivers were uninsured in 2023, more than one in seven.

It also estimated that 18.0% were underinsured that year. Its underinsured measure concerns drivers whose liability insurance limits were insufficient for injury costs in accidents they caused.

IRC estimate for 2023	Reported share
Uninsured drivers nationwide	15.4%
Underinsured drivers nationwide	18.0%
Uninsured drivers in Maine	5.7%
Uninsured drivers in Mississippi	28.2%

These are dated research estimates. They are not your personal odds of being hit, a current quote, or a legal definition that applies identically in every state.

The NAIC also reports the 15.4% national estimate and the wide differences between states.

Use the data to understand the risk, then compare how your own policy would respond.

What Do UMBI, UIMBI, UMPD, and UIMPD Mean?

The abbreviations identify two separate questions: whether the other driver has enough insurance and whether the claim concerns injuries or property.

Abbreviation	Meaning	Main purpose
UMBI	Uninsured motorist bodily injury	Covered injuries caused by an uninsured driver
UIMBI	Underinsured motorist bodily injury	Covered injuries involving inadequate liability insurance
UMPD	Uninsured motorist property damage	Covered vehicle or other property damage
UIMPD	Underinsured motorist property damage	Covered property damage involving inadequate liability limits

Not every state or insurer offers all four as separate choices. Some combine labels, and some provide no separate UIM property damage option.

Progressive’s coverage overview describes the distinction between bodily injury and property damage benefits.

What Can Injury Coverage Pay For?

Depending on the policy and law, injury benefits may include medical costs, lost earnings, and pain and suffering.

AAA’s California coverage guidance describes these losses and explains that certain insured people can also have protection as pedestrians or passengers in another car. Those details require a policy review rather than a nationwide assumption.

Ask about each type of loss. A medical bill is only one part of a serious injury claim.

How Should I Compare Coverage Limits?

Read the UM/UIM limits separately from your liability limits.

If injury coverage shows 100/300, that generally means:

Up to $100,000 for one injured person.
Up to $300,000 for covered injuries to all people in one accident.

Those are limits, not guaranteed payments. Fault, eligible damages, exclusions, and other terms still matter.

Ask whether the quote uses split limits like these or a combined single limit. Request a plain-language explanation if the format differs.

Why Does the Per-Person Limit Matter?

Consider a hypothetical family crash. One person has $160,000 in eligible injury damages. A $100,000 per-person limit can leave a shortfall even if the per-accident limit is $300,000.

Now suppose four people each have $90,000 in eligible damages. Their combined $360,000 loss exceeds a $300,000 accident limit.

These examples ignore other insurance, offsets, and claim conditions. They show why you should compare both numbers.

For the broader issue, read what happens when a car accident claim exceeds insurance limits.

Does UIM Pay on Top of the Other Driver’s Insurance?

Sometimes. You must check the applicable payment rules.

An offset is a reduction based on another payment or coverage amount. Under some arrangements, the at-fault driver’s available liability coverage reduces what UIM can provide.

Other arrangements provide UIM without that particular reduction, up to eligible uncompensated damages and the applicable limit.

Virginia law illustrates the distinction. Its statute provides for UIM payment without credit for available liability coverage unless a named insured elects the reduction described in the law.

How Can Matching Limits Produce Different Results?

Assume $125,000 in eligible injury damages, $25,000 available from the at-fault driver, and a stated $100,000 UIM limit.

Hypothetical payment design	Available UIM amount in this illustration	Combined payment
UIM availability reduced by $25,000	$75,000	$100,000
UIM available without that reduction	$100,000	$125,000

These are simplified illustrations of two payment designs. They do not describe every state or promise a settlement.

Ask: “With this exact policy, how would you calculate benefits if the other driver had $25,000 and my eligible damages were $125,000?”

A worked example can reveal a difference that the declarations page alone does not explain.

What Does Stacking Mean?

Stacking generally means combining available UM/UIM limits from more than one covered vehicle or policy when permitted.

Suppose two vehicles each have $50,000 limits. If the law and applicable terms allow those limits to stack for the claim, more protection may be available than under one limit alone.

Do not multiply the number of cars by the limit without checking eligibility.

Pennsylvania’s statute addresses stacked limits and allows a named insured to waive stacking through specified forms. That is a state example, not a national rule.

Ask:

Is stacking available here?
Does it apply within one policy, across policies, or both?
Who qualifies to use the combined limits?
Has anyone signed a stacking waiver?
How does stacking affect the price?

Also keep stacking separate from UIM offsets. Combining limits and reducing benefits for another payment are different issues.

Will UM/UIM Pay to Repair My Car?

Only if the applicable property damage coverage covers the loss.

UM/UIM bodily injury coverage does not become vehicle repair coverage simply because both losses arose from the same crash.

California’s insurance department provides a clear example: its consumer guide describes UMPD with a $3,500 limit and says the uninsured driver must be identified.

A vehicle worth $20,000 could have a substantial gap if you rely on a small property damage limit alone.

Compare:

The covered vehicle’s value.
The property damage limit.
The deductible.
Driver identification requirements.
Whether collision coverage also applies.
Any rental or related benefits.

How Does Collision Coverage Differ?

Collision addresses covered damage to your car from a collision. UM property damage depends on the other driver’s uninsured status and other applicable conditions.

Texas guidance notes that collision can pay for car repairs while UM/UIM may provide additional benefits. It identifies a $250 deductible for covered car repairs under Texas UM/UIM protection.

That Texas deductible is not a national standard. Ask for the deductible on each coverage in your own quote.

Does UM/UIM Cover a Hit-and-Run?

It may, but injury and property damage claims can follow different rules.

An unidentified driver does not automatically produce the same result under every state’s UMPD coverage. California, for example, requires identification of the uninsured driver for the UMPD described in its consumer guide.

Ask whether the policy requires:

A police report.
Prompt notice to the insurer.
Physical contact with the fleeing vehicle.
Independent evidence or witnesses.
Identification of the driver for property damage.

Do not assume a “phantom vehicle” claim is treated like a crash with direct contact. Describe what happened and preserve evidence.

For practical next steps, see what to do after a hit-and-run damages your car.

Do I Need UM/UIM If I Have Health Insurance, PIP, or MedPay?

Compare what each policy pays instead of treating them as equal substitutes.

Coverage	Main question it addresses
Health insurance	Which covered medical services will the health plan pay for?
Personal injury protection, or PIP	Which injury benefits apply under the state’s no-fault rules and policy?
Medical payments, or MedPay	Which covered medical or funeral expenses apply under the auto policy?
UM/UIM bodily injury	Which eligible injury damages can you recover because another driver lacks adequate insurance?

UM/UIM may address covered losses beyond medical bills, such as lost earnings and pain and suffering. Texas and AAA guidance identify these differences.

Ask how payments coordinate. Having two coverages does not mean you can collect twice for the same expense.

If you have Medicare, employer health coverage, or another health plan, review its payment and reimbursement rules too. Ask your agent to explain which auto benefits would remain useful after those rules apply.

Who Does the Coverage Protect?

Check the policy’s definition of an insured person.

Depending on the terms, coverage may extend to the named insured, certain household relatives, or passengers. The answer can also change when someone is walking, riding a bicycle, or occupying another vehicle.

Do not assume that every listed driver or every person living at your address has identical rights.

Ask the insurer about your actual household:

A teenager driving a family car.
A spouse riding with a friend.
A parent visiting from another home.
A child who lives away at college.
A resident who owns a separate vehicle.

Give complete facts about ownership, residence, and vehicle use. Ask about exclusions involving vehicles owned by the household but not insured on the policy.

Is UM/UIM Required in My State?

Requirements vary. A state may require coverage, require insurers to offer it, allow written rejection, or treat injury and property damage differently.

Texas requires insurers to offer UM/UIM; consumers who decline must do so in writing, according to its insurance department.

North Carolina changed its rules for policies issued or renewed on or after July 1, 2025. Its insurance department says UIM is included in those policies and describes changes to benefit triggers and offsets.

Do not rely on an old article or a rejection form from another state.

Ask for:

The current state requirement.
The limits included in the quote.
Any signed rejection or lower-limit selection.
The current endorsement.
The effect of moving to another state.

A legal minimum tells you what is required. It does not establish how much protection fits your household.

How Should I Compare Price and Value?

Request quotes with matching coverage first.

Keep these details the same:

Vehicles and drivers.
Liability limits.
UM/UIM injury limits.
Property damage protection.
Deductibles.
Stacking choice.
UIM payment design.
Policy term and payment schedule.

Use this guide to comparing car insurance quotes with the same coverage to organize the broader comparison.

Then ask for the price difference between two or three UM/UIM limit choices.

For example, request the added cost of moving from $50,000 to $100,000 per person where available. Ask whether other limits must change too.

A driver on a tight budget should compare actual prices before removing protection. A lower premium does not show how much financial risk shifts back to the household.

Save the quote details so a later price change does not hide a coverage change.

What Should I Do Before Settling a UM/UIM Claim?

Notify your insurer promptly if another driver may have no coverage or insufficient limits.

New Jersey’s insurance department recommends contacting your company early rather than waiting for final written confirmation from the other insurer. It also explains that settlement notice and permission requirements can matter.

Ask your insurer before signing a release:

Must I give you notice of the offer?
Is written consent required?
Must the other policy’s limits be exhausted?
What proof of available coverage do you need?
What deadlines apply?
How will other payments affect my claim?

Keep crash reports, photographs, witness details, medical records, wage records, and correspondence.

Do not treat a settlement check as a complete answer to UIM eligibility. For a serious injury or disputed release, consider advice from a licensed attorney familiar with your state’s rules.

What Questions Do Drivers Often Ask?

Is Uninsured Motorist Coverage Better Than Underinsured Coverage?

They address different problems. UM concerns missing applicable liability insurance; UIM concerns insufficient coverage. Compare both rather than choosing solely by which risk sounds more likely.

Does UM/UIM Cover Me If I Cause the Accident?

It generally addresses losses caused by an uninsured or underinsured at-fault driver. It does not replace liability insurance for harm you cause or collision coverage for damage to your own car. Shared fault can affect payment.

Can I Use UM/UIM If the Other Insurer Denies Coverage?

Possibly. Some denials can bring a loss within the applicable uninsured vehicle definition. A denial based on a fault dispute is not automatically proof of uninsured status. Send the written decision to your insurer for review.

Do I Pay a Deductible for UM/UIM?

Check the coverage part. Injury and property damage benefits can have different rules. Do not assume the deductible shown for collision also applies to a UM/UIM claim.

Will UM/UIM Pay My Entire Loan If My Car Is Totaled?

Do not assume so. Vehicle damage benefits and loan payoff obligations are different. Ask how the insurer values the car and whether a separate GAP product addresses any eligible loan shortfall.

Can I Buy UM/UIM After an Accident?

You can ask about coverage for future losses, but adding it afterward does not cover an earlier crash. Check the policy that applied on the loss date and any other available insurance.

What Should You Compare Before Choosing?

Compare the losses covered, injury and property limits, deductibles, UIM payment rules, stacking, insured-person definitions, and claim conditions. Ask for a written example using your state’s current rules.

Bring matching quotes and endorsement details to a licensed agent before deciding. AtozInsuranceusa encourages you to choose based on the protection your household would receive after a serious crash, alongside what you can afford to pay for coverage.