The Difference Between Uninsured and Underinsured Motorist Claims in Illinois

Car accidents can be overwhelming and potentially life-altering, and the situation becomes even more complicated when the at-fault driver lacks sufficient insurance coverage. In Illinois, motorists are required to carry a minimum amount of liability insurance, but not all drivers comply. According to a study by the Insurance Research Council (IRC), about 12.6% of drivers nationwide are uninsured, and some studies estimate that this number can be higher in urban areas. Even those who carry insurance may have insufficient coverage to fully compensate victims for their injuries and damages. In these scenarios, uninsured motorist (UM) and underinsured motorist (UIM) claims become crucial protections for injured individuals.

Understanding the differences between uninsured and underinsured motorist claims is essential if you’re involved in an accident with a driver who lacks adequate insurance coverage. These claims can be complex, and the involvement of insurance companies can create further complications. To ensure that your rights are fully protected, it’s important to consult with a knowledgeable lawyer before proceeding with a claim.

Uninsured Motorist Claims in Illinois

Uninsured motorist (UM) coverage protects you if you are injured in an accident caused by a driver who has no insurance. A 2022 study by the Insurance Information Institute (III) found that around 14% of drivers in the U.S. operate vehicles without insurance, leaving law-abiding drivers at risk of being unable to recover compensation after an accident. While Illinois mandates that drivers carry insurance, uninsured drivers remain a problem across the state.

Illinois law requires all auto insurance policies to include uninsured motorist coverage with minimum liability limits of $25,000 per person and $50,000 per accident. This coverage steps in when the at-fault driver cannot provide compensation for injuries and property damage because they have no insurance.

When Does Uninsured Motorist Coverage Apply?

Uninsured motorist coverage applies in several situations:

• Hit-and-run accidents: If the at-fault driver flees the scene and cannot be identified, they are treated as uninsured, and your UM coverage may provide compensation for your injuries.
• Accidents with uninsured drivers: If the at-fault driver lacks insurance, your UM coverage will cover medical expenses, lost wages, and other damages, up to the limits of your policy.
• Pedestrian or bicycle accidents: If you are struck by an uninsured driver while walking or biking, your UM coverage may still apply.

What Does Uninsured Motorist Coverage Compensate?

In an uninsured motorist claim, you can seek compensation for:

• Medical expenses: Hospital bills, surgeries, medications, and rehabilitation costs are covered by UM insurance.
• Lost wages: If you’re unable to work due to your injuries, UM coverage can compensate for lost income.
• Pain and suffering: Compensation may be available for the emotional and physical pain caused by the accident.
• Property damage: Illinois allows drivers to purchase uninsured motorist property damage (UMPD) coverage, which can cover vehicle repairs and other property damage caused by an uninsured driver.

Underinsured Motorist Claims in Illinois

Underinsured motorist (UIM) coverage applies when the at-fault driver has insurance, but their liability coverage is insufficient to fully compensate you for your injuries. Illinois law requires drivers to carry at least $25,000 per person and $50,000 per accident in liability coverage, but many accidents result in damages that exceed these minimums.

Underinsured motorist coverage provides an additional layer of protection by covering the gap between the at-fault driver’s policy limits and the total amount of damages you suffer. Illinois requires underinsured motorist coverage to be included in all auto policies.

When Does Underinsured Motorist Coverage Apply?

UIM coverage applies when:

• The at-fault driver’s insurance is insufficient to cover your medical bills, lost wages, and other damages.
• Your UIM coverage steps in to pay the difference between the at-fault driver’s liability limits and your total damages.

Example of an Underinsured Motorist Claim

Suppose you are involved in an accident, and your medical expenses total $75,000. The at-fault driver carries the state minimum liability insurance of $25,000 per person. After the at-fault driver’s insurance pays the $25,000, you would still have $50,000 in damages. Your UIM coverage would pay the remaining $50,000, up to your policy limits.

Key Differences Between Uninsured and Underinsured Motorist Claims

While uninsured and underinsured motorist coverages both provide crucial protections, there are key differences:

• Uninsured motorist coverage applies when the at-fault driver has no insurance at all.
• Underinsured motorist coverage applies when the at-fault driver has some insurance but not enough to cover your total damages.
• The compensation process for each claim is slightly different. In a UM claim, your insurance company essentially stands in place of the uninsured driver. In a UIM claim, your insurer covers the difference between the at-fault driver’s liability limits and your total damages.

Why Legal Representation is Critical for UM and UIM Claims

Filing a UM or UIM claim can be complicated, and insurance companies often deny claims due to technicalities. For instance, an insurance company may argue that the policyholder failed to properly notify them of the accident or that the injuries do not meet the threshold for compensation. They may also challenge the amount of damages, including lost wages and pain and suffering.

Given the complexities and potential for insurance companies to deny claims, it is critical to review your case with an experienced attorney before proceeding. Having legal representation ensures that you meet all necessary deadlines, understand the fine print of your policy, and gather the evidence needed to support your claim.

At John J. Malm & Associates, we have years of experience handling uninsured and underinsured motorist claims in Illinois. We understand the tactics insurance companies use to minimize payouts and will advocate for your full compensation.

Conclusion

Uninsured and underinsured motorist claims are vital protections for Illinois drivers involved in accidents with drivers who either lack insurance or have insufficient coverage. These claims can be complicated, and insurance companies often seek to deny them based on technical deficiencies. It’s crucial to consult with an experienced attorney before proceeding with your UM or UIM claim to ensure that your rights are protected and that you receive the compensation you deserve.

At John J. Malm & Associates, we are committed to helping victims of car accidents in Illinois. Whether you’ve been involved in a hit-and-run, an accident with an uninsured driver, or a crash where the at-fault driver’s insurance is insufficient, we are here to help. Contact our Chicago car accident attorneys for a consultation and learn how we can assist with your uninsured or underinsured motorist claim.