You do everything right after a car accident in Chicago. You call the police. You get medical treatment. You hire a lawyer. And then you find out the driver who hit you has no insurance. Or they carry only the Illinois minimum of $25,000, and your medical bills alone are $80,000.
This is not rare. An estimated 1 in 7 drivers in Illinois is uninsured. And even among insured drivers, many carry only the state minimum, which barely covers a trip to the emergency room.
When the at-fault driver cannot pay for your injuries, your own uninsured or underinsured motorist (UM/UIM) coverage may be your best option for getting compensated. Here is how these claims work in Illinois.
What Is Uninsured Motorist (UM) Coverage?
Uninsured motorist coverage pays for your injuries and damages when the at-fault driver has no insurance at all. It steps into the shoes of the liability insurance the other driver should have carried.
UM coverage applies when:
- The at-fault driver has no auto insurance
- The at-fault driver’s insurance company is insolvent (went out of business)
- You were the victim of a hit-and-run and the driver cannot be identified
UM coverage pays for the same types of damages you would recover from the at-fault driver’s insurance: medical expenses, lost wages, pain and suffering, and other losses.
What Is Underinsured Motorist (UIM) Coverage?
Underinsured motorist coverage kicks in when the at-fault driver has insurance, but their policy limits are not enough to cover your damages.
Example: You suffer $150,000 in damages from a car accident in Chicago. The at-fault driver carries only the Illinois minimum of $25,000 per person. Their insurance pays the full $25,000 policy limit. Your UIM coverage then pays the difference, up to your own policy limit.
If you carry $100,000 in UIM coverage, you could receive an additional $75,000 from your own insurer (your $100,000 limit minus the $25,000 already paid by the at-fault driver’s policy), bringing your total recovery to $100,000.
Is UM/UIM Coverage Required in Illinois?
No. Illinois does not require drivers to carry UM or UIM coverage. However, Illinois law requires insurance companies to offer it to every policyholder. When you purchase or renew your auto insurance, your insurer must give you the option to buy UM/UIM coverage.
If you declined UM/UIM coverage, you should have signed a written rejection. If your insurer cannot produce a signed rejection form, you may have coverage by default. An attorney can investigate whether your policy includes UM/UIM coverage even if you do not think you purchased it.
Illinois UM/UIM Coverage Limits
You can purchase UM/UIM coverage up to the same limits as your liability coverage. Common coverage levels include:
| Coverage Level | What It Means |
|---|---|
| 25/50 (Illinois minimum liability) | $25,000 per person / $50,000 per accident |
| 50/100 | $50,000 per person / $100,000 per accident |
| 100/300 | $100,000 per person / $300,000 per accident |
| 250/500 | $250,000 per person / $500,000 per accident |
Given the number of uninsured and underinsured drivers in the Chicago area, carrying UM/UIM coverage at your full liability limits is one of the most important financial protections you can have.
How to File a UM/UIM Claim in Illinois
Step 1: Establish That the Other Driver Is Uninsured or Underinsured
For a UM claim, you need to show that the at-fault driver had no insurance. The police report, the other driver’s own admission, or a check with the Illinois Secretary of State’s office can confirm this.
For a UIM claim, you need to show that the at-fault driver’s coverage is insufficient. This typically becomes clear when their insurance company offers their full policy limit and it does not cover your damages.
For hit-and-run claims, you generally need to show that you made a reasonable effort to identify the other driver. Filing a police report and cooperating with the investigation satisfies this requirement.
Step 2: Notify Your Own Insurance Company
Report the claim to your own insurer as soon as you know the other driver is uninsured or underinsured. Your policy has notification deadlines, and failing to report promptly can give your insurer grounds to deny the claim.
Step 3: Document Your Damages
Your UM/UIM claim is valued the same way as any personal injury claim. You need:
- Medical records and bills documenting your injuries and treatment
- Proof of lost wages and income
- Evidence of pain and suffering, emotional distress, and quality of life impact
- Property damage documentation
Step 4: Negotiate or Arbitrate
Here is where UM/UIM claims get tricky. You are filing a claim against your own insurance company. The insurer that you pay premiums to is now on the other side of the table, and their goal is to pay as little as possible.
Your insurer will investigate the claim, review your medical records, and likely dispute the value of your damages just as aggressively as a third-party insurer would. They may argue:
- Your injuries are not as severe as you claim
- Some of your treatment was unnecessary
- Your injuries were pre-existing
- You share fault for the accident, reducing your recovery under comparative fault
Most Illinois UM/UIM policies include a mandatory arbitration clause. If you and your insurer cannot agree on the value of your claim, the dispute goes to binding arbitration rather than a jury trial. An arbitration panel (usually three arbitrators) hears both sides and makes a decision.
Important Rules for Illinois UM/UIM Claims
You Cannot Stack Policies (Usually)
Illinois law generally does not allow “stacking” of UM/UIM coverage across multiple vehicles on the same policy. If you have two cars insured on the same policy with $100,000 UM each, you do not get $200,000 in coverage. You get $100,000.
However, if you have separate policies (for example, your auto policy and a family member’s separate auto policy), stacking may be possible depending on the policy language. An attorney can review your coverage situation.
You Must Exhaust the At-Fault Driver’s Coverage First (for UIM)
Before your UIM coverage kicks in, you must first obtain the full policy limit from the at-fault driver’s insurance. You cannot skip the at-fault driver’s insurer and go directly to your UIM coverage.
Important: Before accepting a settlement from the at-fault driver’s insurer, notify your own UIM carrier and get their consent. If you settle with the at-fault driver’s insurer without your UIM carrier’s permission, you may lose your right to the UIM claim because you eliminated your insurer’s subrogation rights.
Statute of Limitations
The statute of limitations for UM/UIM claims in Illinois is generally the same as for personal injury claims: two years from the date of the accident. However, your policy may have shorter contractual deadlines for filing. Read your policy carefully and consult an attorney if you are unsure.
UM/UIM Does Not Cover Property Damage (Usually)
Most Illinois UM/UIM policies cover only bodily injury, not property damage. Vehicle repair or replacement after an uninsured driver accident typically falls under your collision coverage, if you carry it.
Hit-and-Run Accidents and UM Coverage
Hit-and-run accidents are one of the most common triggers for UM claims in Chicago. When the at-fault driver flees and cannot be identified, they are treated as an uninsured motorist.
Illinois UM policies generally require:
- Physical contact between the hit-and-run vehicle and your vehicle (for property-only claims). Some policies waive this requirement for injury claims.
- A police report filed promptly after the accident
- Reasonable efforts to identify the fleeing driver
If a witness saw the hit-and-run or if the at-fault vehicle is later identified, the requirements may be different. Check your specific policy language.
Why You Need a Lawyer for UM/UIM Claims
UM/UIM claims pit you against your own insurance company. This creates a fundamentally adversarial relationship with the company you pay premiums to.
An experienced car accident lawyer can:
- Review all applicable policies to identify maximum coverage, including policies you may not know about
- Handle negotiations with your insurer so you do not accept a lowball offer
- Prepare for arbitration with the same rigor as preparing for trial
- Protect your UIM rights by properly coordinating with the at-fault driver’s insurer before settling
- Identify other sources of recovery beyond UM/UIM, such as employer liability or government liability
Insurance companies know that claimants without lawyers accept lower settlements. When your own insurer knows you have experienced legal representation, they are more likely to evaluate your claim fairly.
Talk to a Chicago Car Accident Lawyer
If the driver who hit you had no insurance or not enough insurance to cover your injuries, you may have options through your own UM/UIM coverage. The attorneys at Phillips Law Offices can review your coverage, handle the claim against your insurer, and fight for full compensation.
Call (312) 346-4262 or contact us online for a free consultation.
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