The Importance of Uninsured and Underinsured Motorist Coverage

What is Uninsured and Underinsured (UM/UIM) Motorist coverage? 

UM/UIM coverage is insurance that you purchase with your own auto insurance policy, and it has never been more important than it is today. These policies protects you and your family against the many drivers on the road that have insufficient - or non-existent - auto insurance policies of their own.  Claims made under these two types of coverage take similar paths, but apply in different situations.

An uninsured motorist claim (UM) occurs when the at fault driver has no insurance or you are injured in a hit and run accident.  In these cases, you are able to recover up to the full value of your own uninsured motorist coverage limits. Certain timely steps must be taken to preserve the claim so it can be properly pursued.

An underinsured motorist claim (UIM) may arise when the driver who injures you does not have enough auto insurance to compensate you for your injuries.  In Illinois, the minimum insurance policy is merely $25,000 per person.  With the rising costs of medical expenses, this can be barely enough to cover an ambulance ride and initial ER visit.  So, what options do you have to collect additional funds for your injuries?  If you have a higher limit of underinsured coverage than the at fault driver’s liability coverage, you can make a claim for additional damages under your own policy. 

For example, let’s say you are injured by the driver with the state minimum $25,000 liability policy, but you have a claim valued at more than $100,000. If you have $100,000 in underinsured motorist coverage, you can collect the $25,000 against the at fault driver and then up to an additional $75,000 under your own policy for a total of $100,000.  In order to do this, certain steps must be taken to preserve the additional claim.  If not done properly, you may be barred from pursuing your claim.

So how does it work in practice?

What most people don’t realize is that you do not typically have to be in your car to be able to pursue a UM/UIM claim.  As long as your injuries are caused by another driver with no insurance or insufficient insurance to cover your injuries, you have a right to make these claims.  It doesn’t matter if you’re in your car, someone else’s car, you are struck as a pedestrian or even riding a bicycle.

When these claims are made, your own auto insurance company “steps into the shoes” of the would-be insurance company of the other driver who has injured you.  This is what we call a first party claim under your own policy.  How exactly the claim proceeds is dictated by the insurance code and the specific language in your insurance policy, but in most circumstances, the case proceeds through an arbitration process. The arbitrators typically can award the same types of damages you would be able to receive from a jury trial including medical expenses, lost wages and non-economic damages such as pain and suffering and loss of normal life.

The amounts that can be awarded under these claims are typically limited to the amount of your policy limits.  Your UM/UIM coverage limits usually mirror your injury liability limits.  Most insurance companies also offer the ability to obtain UM/UIM coverage with an umbrella policy.  Given the importance of these coverages and their limits, it is very important to review these with your insurance agent or broker to make sure you have properly protected yourself.

Recognizing and navigating these claims can be very technical and should be done with the assistance of an experienced personal injury attorney.  The attorneys at Adeszko, Abate & Green, LLC have extensive experience both representing clients in these claims and acting as arbitrators in these claims.  They are available to represent you and guide you through this process to maximize your recovery.