When you make an underinsured motorist (UIM) claim in Illinois, the amount you can recover depends on two numbers: your own UIM limit and what the at-fault driver’s insurance pays. Under Illinois law, your UIM coverage pays up to your UIM limit, minus the amount you actually recover from the at-fault driver’s insurance. It pays for bodily injury only, and it applies only when the at-fault driver’s liability limits are lower than your UIM limit.
Here is how that works. Say the at-fault driver carries the Illinois minimum of $25,000 per person in bodily injury coverage, you carry $100,000 in UIM coverage, and your injuries add up to $80,000. The other driver’s insurer pays $25,000. Your UIM coverage can then pay the remaining $55,000, because that is less than your $75,000 ceiling ($100,000 minus the $25,000 you already recovered). If your injuries were worth $150,000 instead, your UIM coverage would stop at $75,000 and you would receive $100,000 in total. This is only an example. Your actual recovery depends on your policy limits and the facts of your accident.
Understanding Underinsured Motorist Coverage
In this short video, Phillips Law Offices attorney Alec D. Mesrobian explains what to do when the driver who hit you has no insurance or only the state minimum, and how your own uninsured and underinsured motorist coverage can help.
Read the video transcript
So the other driver wasn’t insured. Can I still recover money? Yes, you can. In Illinois we have something called uninsured motorist coverage and underinsured motorist coverage. So if you have a policy with your own insurance provider for UM or UIM coverage, you can collect under that policy even if the at-fault party doesn’t have any insurance, and I see that a lot, unfortunately, here in Illinois.
What is underinsured and uninsured motorist coverage? Well, it’s a protection. And what I mean by that is underinsured and uninsured motorist coverage is a policy you can get with your own insurance provider, and it’s not terribly expensive. Unfortunately, there are a lot of drivers in Illinois that drive without insurance or, conversely, with the state minimum policy of $25,000.
Well, God forbid you’re in an accident and you go to the emergency room, imaging’s done, and you have a couple sessions of physical therapy. Those medical bills rack up. But unfortunately, you can really only collect against the policy amount of the defendant driver that hit you. Now, if you had uninsured or underinsured motorist coverage, that would allow you to collect under a policy provided by your own insurance company, and I highly recommend everyone has it.
My name is Alec Mesrobian and I’m a trial lawyer here at Phillips Law Offices. If you have any questions for me personally or for the firm, feel free to comment below or reach out to the firm and I’d be happy to answer them. Or visit our website, phillipslawoffices.com.
Definition and purpose of underinsured motorist coverage
Underinsured motorist coverage is a type of insurance that helps protect you if you’re injured in a car accident caused by someone whose insurance is too low to cover your losses. Its purpose is to step in and pay for your medical bills, lost income, and pain and suffering when the at-fault driver’s liability limits fall short. In Illinois it covers bodily injury and death, not vehicle repairs.
How underinsured motorist coverage differs from uninsured motorist coverage
Underinsured motorist coverage takes effect when the at-fault driver’s insurance doesn’t fully cover your expenses. On the other hand, uninsured motorist coverage helps when the at-fault driver doesn’t have any insurance at all. So, while underinsured coverage supplements the other driver’s insurance, uninsured coverage fills the gap when there’s none at all.
How Illinois handles underinsured and uninsured motorist coverage
Illinois law requires auto liability policies to include uninsured motorist coverage, and underinsured motorist coverage is written the same way, unless you reject it in writing (215 ILCS 5/143a and 5/143a-2). The limits generally match your bodily injury liability limits. Illinois’ minimum liability limits are $25,000 per person, $50,000 per accident, and $20,000 for property damage (625 ILCS 5/7-203), and many at-fault drivers carry only that minimum. Check your policy’s declarations page or ask your insurer to confirm what you actually carry.
Determining Eligibility for an Underinsured Motorist Claim (UIM)
Criteria for filing an underinsured motorist claim
To file an UIM claim, you typically need to prove that the other driver is at fault for the accident and that their insurance isn’t enough to cover all your expenses. You also need to have underinsured motorist coverage as part of your own insurance policy.
Steps to take after an accident to ensure eligibility
After an accident, it’s important to gather as much information as you can, such as the other driver’s details, witnesses’ contact information, and photos of the scene. You should also seek medical attention for any injuries and report the accident to your insurance company promptly. These steps help establish the facts of the accident and ensure you meet the requirements for filing an underinsured motorist claim.
Documentation required for filing a claim
When filing an underinsured motorist claim, you’ll typically need to provide documentation such as the police report, medical bills, repair estimates for your vehicle, and any other relevant records related to the accident. Consulting a Chicago underinsured motorist lawyer can help ensure all necessary documents are properly prepared, supporting your claim and making it easier for your insurance company to process efficiently
Factors Affecting UIM Claims
Severity of injuries sustained in the accident
The seriousness of the injuries you suffer in the accident can greatly affect your underinsured motorist claim. More severe injuries typically result in higher medical bills and other expenses, which may exceed the limits of the at-fault driver’s insurance.
Policy limits of the at-fault driver’s insurance
The maximum amount of coverage provided by the at-fault driver’s insurance policy plays a significant role in underinsured motorist claims. If their policy limit is low, it may not be enough to cover all your expenses, leading you to rely on your own underinsured motorist coverage.
Illinois comparative fault
Illinois follows modified comparative negligence (735 ILCS 5/2-1116). If you are found more than 50% at fault for the accident, you cannot recover. If you are 50% or less at fault, your compensation is reduced by your percentage of fault, and that reduction carries over to your underinsured motorist claim.
Calculating Potential Compensation
Medical expenses covered under an underinsured motorist claim
This includes all the costs related to medical treatment for injuries sustained in the accident, such as hospital bills, doctor’s visits, medication, physical therapy, and other necessary medical services.
Lost wages and future earning capacity considerations
If the accident causes you to miss work, you can claim compensation for the wages you’ve lost. Additionally, if your injuries affect your ability to work in the future, you may receive compensation for the potential income you would have earned.
Pain and suffering damages
This compensation is for the physical and emotional distress you experience due to the accident and your injuries. It includes factors like pain, anxiety, depression, and loss of enjoyment of life.
Vehicle damage is handled separately
Underinsured motorist coverage in Illinois pays for bodily injury, not vehicle repairs. Damage to your car is usually paid by your own collision coverage or the at-fault driver’s property damage liability insurance. If the at-fault driver has no insurance at all, uninsured motorist property damage coverage may apply when the other vehicle made physical contact with yours. It pays up to your car’s actual cash value, subject to a deductible of up to $250 (215 ILCS 5/143a(2)).
The Claims Process for Underinsured Motorist Coverage
Initial steps after the accident
Right after the accident, it’s important to ensure everyone’s safety and call for help if needed. Then, gather information like the other driver’s details, take photos of the scene, and report the accident to the police.
Contacting your insurance company and filing a claim
Once you’re safe, it’s time to contact your insurance company and let them know about the accident. They’ll guide you through the process of filing a claim, which involves providing details about what happened and any damages you’ve incurred.
Investigating the claim and assessing damages
After you’ve filed your claim, your insurance company will investigate the accident and assess the damages. This may involve reviewing police reports, medical records, and other evidence to determine the extent of your injuries and losses.
Negotiating a settlement with the insurance company
Once the investigation is complete, your insurance company will make an offer for settlement based on their assessment of the damages. You can negotiate with them to reach a fair settlement that covers your expenses and losses resulting from the accident.
Common Challenges in Underinsured Motorist Claims
Disputes over liability and fault determination
Sometimes, there might be disagreements about who caused the accident or how much each party is responsible. These disputes can delay the underinsured motorist claim process as both parties try to prove their side of the story.
Issues with coverage limits and policy exclusions
Underinsured motorist coverage might not cover all types of accidents or damages, and there could be limits on how much compensation you can receive. Understanding your policy’s terms and conditions is essential to avoid unexpected surprises during the claims process.
Delays in the claims process
The process of filing and settling an underinsured motorist claim can sometimes take longer than expected. Delays may occur due to paperwork, investigations, or negotiations between you and your insurance company.
Tactics used by insurance companies to minimize payouts
Insurance companies might employ various strategies to reduce the amount they have to pay out in underinsured motorist claims. These tactics could include disputing the extent of your injuries, undervaluing your damages, or delaying the settlement process in hopes that you’ll accept a lower offer out of frustration.
Seeking Legal Assistance for Underinsured Motorist Claims
When to consider hiring a personal injury attorney
You should think about hiring a personal injury attorney for your underinsured motorist claim if you’re facing challenges with your insurance company, unsure of your rights, or if the other party disputes your claim. They can guide you through the legal process and protect your interests.
Benefits of legal representation in underinsured motorist claims
Having a personal injury attorney on your side can provide several benefits, including expert knowledge of the law, experience handling insurance companies, and the ability to negotiate fair compensation. They can also relieve you of the stress of dealing with legal matters while you focus on recovering from your injuries.
How attorneys can help maximize compensation
Personal injury attorneys know how to build strong cases and advocate for your rights to ensure you receive the maximum compensation possible. They can gather evidence, negotiate with insurance companies, and, if necessary, take your case to court to fight for the compensation you deserve.
What is the difference between uninsured and underinsured motorist coverage?
Uninsured motorist coverage helps when the at-fault driver in an accident doesn’t have insurance at all. Underinsured motorist coverage, on the other hand, helps if the at-fault driver’s insurance isn’t enough to pay for your injuries. It pays up to your UIM limit minus what you recover from the at-fault driver’s insurer. In Illinois, both coverages are included in auto liability policies unless you reject them in writing.
Can I file an underinsured motorist claim if I was partially at fault for the accident?
Yes, in most cases. Illinois follows modified comparative negligence, so you can still recover as long as you were 50% or less at fault. Your compensation is reduced by your percentage of fault. If you were more than 50% at fault, you cannot recover. Your insurance company will look at the circumstances of the accident to decide how fault is shared, and it is best to speak with a lawyer about your situation.
Does underinsured motorist coverage cover a hit and run accident?
Usually not directly. In Illinois, a hit and run is generally handled under your uninsured motorist coverage, not your underinsured motorist coverage, because the driver cannot be identified and has no insurance you can reach (215 ILCS 5/143a). Uninsured motorist property damage coverage does not apply when the at-fault driver cannot be identified.
It’s important to report the hit and run to the police and your insurance company as soon as possible. Your policy sets its own notice and proof requirements, so read it or ask an attorney before you delay.
How long does it take to settle an underinsured motorist claim?
The time it takes to settle an underinsured motorist claim can vary depending on several factors. It may take a few weeks to several months for the insurance company to investigate the accident, assess damages, and negotiate a settlement. Delays can occur due to paperwork, disputes over liability, or the complexity of the case. It’s essential to stay in touch with your insurance company and be patient throughout the process.
Contact Our Attorney Today
If you’ve been injured in a car accident and are wondering how much you can get from an underinsured motorist claim, contact our car accidents lawyer today. Our team can review your case, explain your rights, and help you navigate the claims process to ensure you receive the compensation you deserve for your injuries. Call to us now for a free consultation at (312) 346-4262 and get the legal help you need.
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