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Uninsured / Underinsured Motorist Claims
Uninsured and underinsured motorist claims involve motor vehicle accidents where the at fault driver does not carry enough insurance to fully compensate the injured plaintiff. An uninsured or underinsured motorist claim involves the injured person seeking compensation through their own automobile insurance carrier for the injuries suffered. The extent of the recovery available is defined by the amount of coverage purchased.
According to a study conducted by the Insurance Research Council in 2000, 13% of drivers on the roadway are uninsured. This figure does not reflect those drivers carrying the minimum coverage allowed under Illinois law. In Illinois, no person may operate, register or maintain registration of a motor vehicle designed to be used on a public highway unless the motor vehicle is covered by a liability insurance policy. No insurance policy may be issued in an amount less than $20,000.00 for bodily injury to or death of any one person in a motor vehicle accident and for a limit of not less than $40,000.00 because of bodily injury to or death of two or more persons in any one motor vehicle accident. In other words, many drivers in the State of Illinois carry policies of insurance that provide payment in the amount of $20,000.00 for the death of a person resulting from the negligence of that insured driver in an automobile collision. Even if a person were to suffer severe personal injury and incur medical expenses exceeding $500,000.00, the limit of compensation available from that negligent driver's insurer may be limited to $20,000.00.
Given the failure of many drivers in the State of Illinois to carry the required insurance coverage as well as the limited coverage carried by many additional drivers, uninsured and underinsured motorist claims are common. Uninsured/underinsured motorist claims involve a review of those issues common to all motor vehicle accidents including the liability of the defendant driver, the conduct of all parties involved in the collision, the injuries suffered and medical care received by the injured party as well as the coverage underwritten on behalf of the at fault driver. An uninsured/underinsured motorist claim further involves a review of the policy of insurance underwritten on behalf of the injured party to determine what compensation, if any may be available. If you were hurt by an uninsured or underinsured driver, our office is available to evaluate your uninsured/underinsured motorist claim. Contact us today for a free case evaluation.
Frequently Asked Questions
What if the other driver does not have insurance?
If the other driver who caused the accident is uninsured, you may be able to obtain compensation through your own insurer. Most automobile insurance policies provide uninsured motorist coverage. This coverage protects you when you are injured by a person who fails to carry insurance. An uninsured motorist claim is governed by the terms of your policy. The recovery of compensation is limited to the amount of insurance coverage purchased. The amount of insurance coverage purchased is reflected on the declarations page. A sample declarations page is provided below. On the declarations page below, the limits of uninsured motorist coverage underwritten by State Farm Insurance Company totals $250,000.00. It is important to review the declarations page as well as the complete policy to determine the terms and amount of coverage available.
What if the other driver has limited insurance coverage?
You may be entitled to compensation from your own insurer under your underinsured motorist coverage. Most automobile policies include underinsured motorist coverage. Underinsured motorist coverage protects you when the insurance of the other driver is more limited than the coverage you purchase and the compensatory value of your claim exceeds the policy limit of the at fault driver's policy.
An example of an underinsured motorist claim is as follows:
Driver A is involved in a car accident which is the fault of Driver B. Driver A suffers a broken leg and broken wrist. Driver A seeks compensation from Driver B's insurer whose policy is limited to $20,000.00. Driver A carries underinsured motorist coverage with a limit of $100,000.00. Driver A may be entitled to the $20,000.00 policy limit from Driver B's insurer and an additional $80,000.00 pursuant to his own
underinsured motorist coverage.
The limits of underinsured motorist coverage are noted on the declarations page. A sample declarations page is provided below. The limits of coverage underwritten by State Farm Insurance Company on the sample declarations is $250,000.00. It is important to review the declarations page as well as the complete policy to determine the terms and amount of coverage available.
In an underinsured motorist claim, the first question is what coverage was provided by an insurer on behalf of the at fault driver. Once the limit of coverage is confirmed, an underinsured motorist claim may be pursued. Typically, the underinsured motorist claim does not proceed until after a recovery has been made from the at fault driver's insurer.
What if my insurance coverage is the same as the other driver's?
If the insurance coverage of the injured party and the at fault driver is the same, an underinsured motorist claim does not apply. There are certain exceptions to this general rule depending upon the policy language. A thorough review of the policy is necessary to determine whether one of the narrow exceptions that would provide additional coverage applies.
Why should my own insurance company have to pay me when the other driver was at fault?
You pay a premium to your insurer for uninsured/underinsured motorist protection. This coverage is designed to compensate you for the injuries suffered at the hands of a driver who did not carry enough insurance given the injuries you suffered. Although you may feel as though it is the at fault driver's insurer who should pay, that insurer's obligation is limited to the policy limit. If that policy limit is insufficient to fully compensate you for the injuries suffered, the only avenue for recovery may be your own insurance policy. Given the payment of the policy premium which includes a specific payment for uninsured/underinsured motorist benefits, you are merely utilizing a service you paid for each month that the policy was in effect.
Does my policy include uninsured/underinsured motorist coverage?
The vast majority of insurance policies underwritten in the State of Illinois include uninsured/underinsured motorist coverage. The Insurance Code provides that no policy insuring against a loss resulting from a liability shall be renewed or delivered or issued for delivery in Illinois unless uninsured motorist coverage as required by the Insurance Code is included in an amount equal to the insured's bodily injury liability limits. The only exception to this is when the insured specifically rejects uninsured/underinsured motorist coverage. If uninsured/underinsured motorist coverage is rejected, the applicant must sign or initial the indication of rejection.
The declarations page and terms of the policy must be reviewed to determine the extent and limits of coverage underwritten.
Will my insurance premium increase if I pursue an uninsured/underinsured motorist claim?
This is a question that is asked by many potential claimants. The answer is that your premium should not increase. Premiums can be increased by insurers for a variety of reasons including multiple moving violations and “chargeable” accidents. A “chargeable” accident is one in which you are “at fault” and results in a payment on your behalf. One who recovers uninsured motorist benefits is not typically the “at fault” driver and the accident is not therefore “chargeable”. Your insurance policy premium should not therefore increase on the basis of the filing of an uninsured motorist claim.
This does not mean that your carrier may not increase your policy for other reasons at the time of your renewal. No promise can be made that your premium will remain the same. The decision to pursue an uninsured or underinsured motorist claim does not typically impact the premium paid.
What if I was hut while a passenger in someone else’s uninsured or underinsured car?
The uninsured or underinsured coverage purchased for your car may apply. The first coverage which is typically at issue is that which applies to the vehicles involved in the collision. If the “at fault” driver was not insured or not sufficiently insured to cover the losses incurred, a passenger’s uninsured or underinsured motorist coverage may apply. A review of the applicable insurance policies including your coverage and the coverage of the at fault driver is necessary to make a determination in this regard.
When else may my uninsured or underinsured motorist coverage apply?
The terms of your insurance policy control the circumstances in which your uninsured/underinsured motorist coverage applies. Most automobile policies provide uninsured motorist coverage for bodily injury caused by an accident arising out of the ownership, maintenance or use of an uninsured auto. This may include injuries suffered while a pedestrian or riding a bicycle if the cause of injury was caused by the operation of an uninsured or underinsured motor vehicle. The terms of the insurance policy must be reviewed to determine whether coverage applies in a particular case.
What about hit and run accidents?
Your uninsured motorist coverage may apply to a hit and run accident that causes injury. Most uninsured motorist coverage applies to hit and run accidents that cause bodily injury. However, most policies require physical contact with the insured person or with a vehicle occupied by that person. In other words, uninsured motorist coverage does not typically apply when an unidentified vehicle cuts in front of but does not strike your vehicle causing the loss of control and resulting injury. Some policies allow an uninsured motorist claim even in the absence of physical contact. The language of the applicable policy must be reviewed.
Some automobile policies require that the hit and run accident be reported to police within 24 hours. Oftentimes the policy requires that the insurer be notified of the loss within 30 days. Many policies also require that the vehicle involved in the accident be made available for inspection so that a point of contact may be identified. Additional requirements may be included within the policy and should be examined immediately following a hit and run accident.
Do uninsured or underinsured motorist claims involve lawsuits and jury trials?
Uninsured/underinsured motorist claims do not involve trial by jury. Uninsured/underinsured motorist claims are based upon your insurance policy which is a contract. If you are unable to agree with the insurer on the value of the uninsured/underinsured motorist claim or whether you are entitled to benefits, the policy controls the manner in which the suit is settled. Most policies provide for the arbitration of the dispute. This involves either one or three lawyers or judges evaluating the issues of fault and claim value. Many polices provide that the claimant choose one arbitrator, the insurer a second and the two arbitrators select a third. Arbitrations are typically less expensive than litigation and trial. They also oftentimes can be resolved more quickly. The cost to the parties of the arbitration varies depending upon the number of arbitrators, their individual charges and the terms of the policy.
Conclusion
The issues raised by uninsured/underinsured motorist claims can be complex. If you believe that you may have such a claim, it is important that you consult with an attorney who may review your insurance policy and assess your right to compensation. Our office is available for a free consultation to discuss these issues.
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