Uninsured and Underinsured Motorist Claims in Illinois
Illinois requires only $25,000 per person in bodily injury liability coverage. A single ambulance ride, an MRI and a short hospital stay can exhaust that before anyone discusses lost wages. When the at-fault driver has no insurance, not enough insurance, or cannot be found at all, your own policy is what stands between you and absorbing the loss yourself.
The Two Coverages
- Uninsured motorist (UM) applies where the at-fault driver had no liability insurance, or left the scene and was never identified. Illinois requires UM coverage on every auto policy under 215 ILCS 5/143a.
- Underinsured motorist (UIM) applies where the at-fault driver had insurance, but not enough to cover what the crash cost. It is governed by 215 ILCS 5/143a-2.
Both usually cover you as a pedestrian or a cyclist as well as a driver, and often cover household family members. It is one of the most commonly overlooked assets people already own.
Setoff: Why UIM Pays Less Than People Expect
This is the part that surprises almost everyone. UIM does not stack on top of the at-fault driver’s payment. Your UIM limit is reduced by what you recover from them. Carry $100,000 in UIM, recover the at-fault driver’s $25,000, and the most your own carrier owes is the $75,000 difference — not a further $100,000. How UIM setoff works in Illinois.
There is a procedural trap alongside it: settling with the at-fault driver without first giving your own UIM carrier notice and the chance to consent can jeopardise the UIM claim entirely. Get advice before you sign a release.
Your Own Insurer Becomes the Opponent
People assume a claim on their own policy is a friendlier process. It is not. Once you make a UM or UIM claim, your carrier is on the other side of the valuation, and it will investigate, request examinations and dispute causation exactly as a third-party insurer would. Most policies also send disputes to arbitration rather than a jury. When a UM/UIM claim is denied and goes to arbitration.
Illinois insurers are also bound by conduct rules — 215 ILCS 5/154.6 defines improper claims practices, and 215 ILCS 5/155 provides a remedy for vexatious and unreasonable delay. How insurers handle Chicago crash claims.
Practical Steps
- Find out what the at-fault driver actually carried — how to find their policy limits
- Check every policy in the household, not only the one on the car you were driving
- Give your UIM carrier written notice early, before settling with anyone
- Do not give a recorded statement to your own carrier without advice — why it matters
- Read the full UM/UIM guide
Talk to Us Before You Talk to the Insurance Company
The consultation is free, there is no obligation, and there is no attorney’s fee unless we recover for you. We will explain how case costs are handled before you sign anything.
Call (312) 346-4262 or send us the details below.
Phillips Law Offices
161 N Clark St, Suite 4925, Chicago, IL 60601
(312) 346-4262
Attorney advertising. Prior results do not guarantee or predict a similar outcome; every case is decided on its own facts. This page is general information about Illinois law, not legal advice, and reading it or contacting us does not create an attorney-client relationship — that relationship is formed only by a signed written agreement. Illinois law changes; confirm anything you intend to rely on with a licensed Illinois attorney.