Why Is Uninsured Motorist Coverage Important?

Accidents happen, and when they do, having the right insurance coverage is essential. In Illinois, uninsured motorist (UM) coverage is one of the most crucial forms of protection a driver can have. This type of coverage ensures that, if you’re injured in a car accident with a driver who doesn’t have insurance or in a hit-and-run scenario, your medical bills, lost wages, and other damages will be covered. With many drivers in Illinois either uninsured or underinsured, UM coverage can be a lifesaver in difficult situations. In this blog, we will explore why uninsured motorist coverage is so important, the legal requirements in Illinois, and how it can help protect you.

The Reality of Uninsured Drivers in Illinois

Despite the fact that Illinois law requires all drivers to carry a minimum amount of liability insurance, many drivers are either uninsured or carry insufficient coverage. According to the Insurance Information Institute (III), approximately 14% of drivers were uninsured in 2022. That means that nearly one in every seven drivers you encounter on the road may not have any insurance to cover damages if they cause an accident.

Even more concerning are those drivers who carry only the minimum required insurance, which may not be sufficient to cover the damages in a serious accident. This is where uninsured motorist (UM) and underinsured motorist (UIM) coverage becomes critical, ensuring that you are protected no matter who is at fault or how much insurance they carry.

Understanding Uninsured Motorist Coverage

Uninsured motorist (UM) coverage is designed to protect you in the event that you are involved in an accident caused by a driver who does not have insurance. It is typically included as part of your own auto insurance policy and helps cover damages like medical bills, lost wages, and pain and suffering. In Illinois, UM coverage is required by law, and the minimum limits for bodily injury are:

• $25,000 per person
• $50,000 per accident

UM coverage comes into play in several situations, including:

• Hit-and-run accidents: If the driver who caused the accident flees the scene and cannot be identified, UM coverage will protect you.
• Accidents with uninsured drivers: If the at-fault driver has no insurance, your UM coverage will cover the damages.

The Importance of Underinsured Motorist (UIM) Coverage

In addition to uninsured motorist coverage, Illinois drivers should also consider purchasing underinsured motorist (UIM) coverage. UIM coverage kicks in when the at-fault driver’s liability insurance is insufficient to cover the full extent of your injuries and damages.

For example, if you are involved in an accident where the at-fault driver carries the state’s minimum required coverage ($25,000 per person), but your medical bills total $50,000, their insurance will only cover up to $25,000. Without UIM coverage, you would be left paying the remaining $25,000 out of pocket. UIM coverage would step in to cover the difference, ensuring that you are not financially burdened by someone else’s insufficient insurance.

Why You Should Maximize Your Uninsured Motorist Coverage

Illinois requires drivers to carry UM coverage, but the minimum limits may not be enough in the case of a serious accident. Given the rising costs of medical care, vehicle repairs, and lost wages, it is highly recommended that drivers increase their UM/UIM coverage beyond the state minimum.

Consider this example: You are involved in an accident with an uninsured driver, and your injuries require extensive medical treatment, rehabilitation, and time away from work. Your total damages may easily exceed $50,000 or more. If you only have the state minimum of $25,000 in UM coverage, you could find yourself facing significant out-of-pocket expenses. By increasing your coverage limits, you can better protect yourself and your family in the event of a catastrophic accident.

How UM Coverage Works in Illinois Accidents

Here’s how uninsured motorist coverage typically works in Illinois:

1. Accident Occurs: You are involved in a car accident, and the other driver is either uninsured or flees the scene.
2. Filing a Claim: You file a claim with your own insurance company under your uninsured motorist coverage. This claim is used to cover your medical expenses, lost wages, and other damages caused by the accident.
3. Determining Liability: Your insurance company will investigate the accident to determine liability and whether the other driver was truly uninsured or underinsured. This process may involve reviewing the police report, speaking with witnesses, and analyzing any available evidence from the scene.
4. Compensation: Once liability is established, your insurance company will compensate you for your damages, up to the limits of your UM/UIM coverage. This can include reimbursement for medical bills, vehicle repairs, lost income, and pain and suffering.

What Happens If You Don’t Have UM Coverage?

Without uninsured motorist coverage, you could be left with significant financial burdens if you are involved in an accident with an uninsured driver. In Illinois, where around 11.8% of drivers are uninsured, this is a real risk. Without UM coverage, you would have to rely on your health insurance to cover medical bills and potentially be forced to cover vehicle repairs and other damages out of pocket.

For those who do not carry health insurance or have high deductibles, this could lead to financial hardship. UM coverage provides peace of mind by ensuring that you are protected, regardless of the other driver’s insurance status.

Illinois Law and Uninsured Motorist Coverage

Illinois law mandates that all auto insurance policies include uninsured motorist coverage for bodily injury. However, this only applies to bodily injury and does not cover property damage. If you want protection for your vehicle in the event of an accident with an uninsured driver, you will need to purchase additional uninsured motorist property damage (UMPD) coverage.

It’s important to note that while Illinois requires UM coverage, it is up to drivers to select coverage limits that meet their needs. The state minimum may not be enough to fully protect you in the event of a serious accident, so it’s advisable to consult with your insurance agent about increasing your limits.

The Role of an Attorney in Uninsured Motorist Claims

If you are involved in an accident with an uninsured driver, navigating the insurance claim process can be complicated. Insurance companies may attempt to minimize payouts or dispute the extent of your injuries. This is where an experienced Illinois car accident attorney can make a difference.

An attorney can:

• Evaluate your claim: Your attorney will review the details of your accident and help determine the full extent of your damages.
• Negotiate with your insurance company: Insurance companies often try to minimize payouts, even under UM claims. Your attorney can negotiate on your behalf to ensure you receive fair compensation.
• Pursue legal action if necessary: If your insurance company refuses to pay a valid UM claim, your attorney can help you pursue legal action to recover the compensation you are entitled to.

“Uninsured motorist coverage is essential in protecting yourself and your loved ones from the financial burden of an accident caused by an uninsured or underinsured driver. It’s an extra layer of security that can make all the difference when the unexpected happens on the road. At John J. Malm & Associates, we fight for our clients’ rights to ensure they are compensated for their injuries and losses.” – John J. Malm, Naperville car accident attorney

Protect Yourself with Uninsured Motorist Coverage

In a world where not all drivers carry adequate insurance, uninsured motorist coverage is your safeguard against unexpected financial loss. Whether it’s a hit-and-run accident, an uninsured driver, or someone with insufficient coverage, UM/UIM insurance ensures that you are protected and compensated for your damages.

At John J. Malm & Associates, our top-rated Naperville car accident lawyers have extensive experience helping victims of car accidents navigate the complexities of uninsured motorist claims. We are committed to ensuring that our clients receive the compensation they deserve. Contact us today for a consultation and learn how we can help you protect your rights and financial future.