What Happens When the At-Fault Driver’s Insurance Isn’t Enough?

When you are injured in an accident caused by another driver, you expect their insurance to cover your losses. But if the at-fault driver is underinsured, their policy limits may be exhausted long before your bills are fully paid.

This leaves you with a serious financial gap. The solution is found within your own auto insurance policy: Underinsured Motorist (UIM) Coverage. This is a specific type of coverage designed to pay for your injuries and damages when the at-fault driver’s insurance falls short.

The process involves filing a claim against your own insurer. You must prove the extent of your damages and follow precise procedural rules, which is why working with an experienced uninsured motorist attorney in Schaumburg, Illinois, can make all the difference.

If you have a question about an accident with an underinsured driver, call us at (224)39-8821.

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The Financial Cliff: Why Illinois’ Minimum Insurance Leaves You at Risk

You did everything right, but now you’re facing a mountain of debt because the other driver carried only the minimum required insurance. This is a frustratingly common scenario, and it highlights a significant gap in financial protection for responsible drivers.

What Are the Minimum Liability Limits in Illinois?

Illinois law requires drivers to carry liability coverage of at least:

$25,000 for the injury or death of one person in an accident.
$50,000 total for the injury or death of more than one person in an accident.
$20,000 for damage to another person’s property.

Why Isn’t This Enough?

Think about the real costs of a serious injury. A single emergency room visit, an MRI, and a few physical therapy sessions easily surpasses $25,000. The state minimums were set years ago and have not kept pace with the rising cost of medical care.

This minimum limit doesn’t account for:

Lost Wages: The income you lose while you’re unable to work can quickly become your largest financial burden.
Long-Term Care: A serious injury might require ongoing medical treatment, rehabilitation, or even modifications to your home.
Pain and Suffering: This is compensation for the physical pain and emotional distress the accident has inflicted on your life.

When your total damages—medical bills, lost income, and suffering—add up to $100,000, the at-fault driver’s $25,000 policy leaves a $75,000 shortfall. Without another source of recovery, that financial responsibility falls directly on you.

Your Financial Safety Net: How Underinsured Motorist (UIM) Coverage Works

This is where your own insurance policy steps in to protect you.

What Exactly Is UIM Coverage?

Simply put, UIM coverage is insurance you buy for yourself to cover injuries caused by a driver who doesn’t have enough insurance to pay for your damages. It is designed to bridge the exact kind of financial gap we discussed.

It is usually bundled with Uninsured Motorist (UM) coverage, which applies when the at-fault driver has no insurance at all. In Illinois, insurance companies are required to offer you UIM coverage in an amount equal to your bodily injury liability limits. You can only have less if you specifically reject this higher amount in writing.

How Does It Work in a Real-World Scenario?

Let’s use the previous example: Your total damages are $100,000.

The at-fault driver has a policy limit of $25,000, which their insurance company pays you.
You have a UIM policy with a limit of $100,000.
You can then file a UIM claim with your own insurance company for the remaining $75,000.

Your UIM coverage pays the difference between your total damages and the at-fault driver’s liability limit, up to your own UIM policy limit. It is the safety net that ensures another person’s lack of responsibility doesn’t jeopardize your family’s financial future.

Who Is Covered by Your UIM Policy?

Your UIM coverage typically extends beyond just you driving your car. It is a broad protection that usually also covers:

You and your resident family members if you are injured as pedestrians or bicyclists hit by an underinsured driver.
Any passengers who were in your insured vehicle at the time of the accident.

What Is the Process for Filing a UIM Claim in Illinois?

While you recover, the focus from home should be on careful documentation and communication, though this is a burden a law firm can and should lift from your shoulders.

Step 1: Notify Your Own Insurance Company.

Even though the other driver was at fault, you must inform your insurer about the accident promptly. Your policy contains specific deadlines for reporting an accident and for signaling your intent to file a UIM claim. Missing these deadlines compromises your ability to recover compensation.

Step 2: Formally Open the UIM Claim.

This is a distinct step from just reporting the accident. To officially open the UIM claim, your insurer will require proof that you have exhausted the at-fault driver’s policy. This typically involves providing:

Proof of the other driver’s policy limits: This is usually a copy of the “declaration page” from their insurance policy.
A settlement offer or payment confirmation: You must first secure the maximum available amount from the at-fault driver’s insurance company.

Step 3: Do Not Sign a Release Without Legal Counsel.

The at-fault driver’s insurer will ask you to sign a release form to get their settlement check. This is a point where many unrepresented individuals make a costly mistake. Signing a general release could inadvertently terminate your right to pursue your UIM claim.

Your own insurer has a right to go after the at-fault driver to recover the money they pay you—a process called subrogation. A lawyer will review the release to ensure it preserves this right, which is a requirement for your UIM claim to proceed.

Step 4: Document and Submit Your Damages.

This is where you build the case for the full value of your UIM claim. We handle the collection and organization of all necessary evidence to present a clear and compelling picture of your losses to the insurance company. This includes:

Medical Records and Bills: Every doctor’s visit, therapy session, prescription, and hospital stay must be documented.
Proof of Lost Income: Pay stubs, employment letters, and tax documents are used to show what you’ve lost and what you may lose in the future.
Pain and Suffering Documentation: This can include journals detailing your daily pain levels, how your injuries limit your activities, and the emotional impact of the accident.

What Compensation Can a UIM Claim Cover?

A UIM claim provides the compensation you would have been entitled to recover if the at-fault driver had carried an appropriate amount of insurance. The goal is to secure funds for both your tangible financial losses and the intangible, but very real, human losses.

Economic Damages (Tangible Financial Losses):

Current and Future Medical Expenses: This includes everything from the initial ambulance ride and emergency care to projected future surgeries, long-term physical therapy, or assistive medical devices.
Lost Wages and Diminished Earning Capacity: This covers not only the income you have already lost but also the wages you will be unable to earn in the future if your injuries have permanently affected your ability to work.

Non-Economic Damages (Intangible Losses):

Pain and Suffering: Compensation for the physical pain, discomfort, and scarring caused by your injuries.
Emotional Distress: This addresses the anxiety, depression, and mental anguish that often result from a traumatic event and the life changes it forces.
Loss of a Normal Life: In Illinois, this is compensation for the loss of enjoyment of your daily activities, hobbies, and relationships that you can no longer participate in as you once did.

The Illinois “Modified Comparative Fault” Rule.

Any compensation you receive will be reduced by your percentage of fault. Under 735 ILCS 5/2-1116, you can only recover damages if you are found to be less than 50% at fault for the accident. If you are determined to be 50% or more at fault, you are barred from recovering anything. Our role is to use the evidence to protect you from any unjust portion of blame being placed on you.

Will My Own Insurance Company Just Pay Me Fairly?

You’ve paid your premiums faithfully for years, and now you need the protection you paid for. However, when you file a UIM claim, the relationship with your insurer changes.

A Shift in Relationship

When you file a UIM claim, you are no longer just a customer; you are a claimant seeking a significant payout. Your insurer’s objective is to validate the claim while also protecting its own financial interests.

What Does Their Investigation Look Like?

They will conduct their own thorough investigation, reviewing the police report, medical records, and witness statements. In this process, they will look for any evidence to argue:

That your injuries aren’t as severe as you claim.
That some of your medical treatment was not necessary or related to the accident.
That you share a percentage of the fault for the accident, which would reduce their payout under the comparative fault rule.

Our Role in This Process

We step in to level the playing field. We handle all communications with the insurance adjuster, so you don’t have to. We present a comprehensive demand package that clearly documents the full value of your claim, leaving little room for them to undervalue your losses. We anticipate their arguments and prepare counter-arguments based on the evidence and Illinois law. This keeps them accountable and ensures the focus remains on the fair value of what was taken from you.

Frequently Asked Questions About Underinsured Motorist Accidents

How long do I have to file a personal injury lawsuit in Illinois?

In Illinois, the statute of limitations for filing a personal injury lawsuit is generally two years from the date of the accident, according to 735 ILCS 5/13-202. It’s important to act well before this deadline, as investigating an accident, gathering evidence, and building a strong case takes a considerable amount of time.

What if the underinsured driver was working for a company like Uber or a delivery service?

This can add another layer of potential coverage. Commercial vehicles and rideshare companies are often required to carry much higher insurance policy limits than private passenger vehicles. We would thoroughly investigate the at-fault driver’s employment status at the time of the crash to determine if a commercial policy applies to your accident.

Will my insurance premiums go up if I file a UIM claim?

While some insurers may adjust rates based on overall claims history, Illinois law generally prevents an insurance company from raising your rates for filing a claim related to an accident that was not your fault, which includes a UIM claim. You paid for this coverage specifically for this situation, and you should not be penalized for using it.

What if I settled with the at-fault driver for less than their policy limit?

This used to be a barrier to recovery. However, Illinois law now allows you to pursue a UIM claim even if you settled for less than the at-fault driver’s full policy limit, as long as the proper procedures were followed with your own insurance company. This is another area where having legal guidance is indispensable.

Do I really need a lawyer for a UIM claim?

While you can file a claim on your own, the process is filled with procedural traps. An inadvertent mistake, like signing the wrong release form or missing a deadline in your policy, could cost you your entire claim. Having a law firm that handles these specific claims ensures every step is taken correctly to pursue the maximum compensation available to you under the law.

Let’s Find a Way Forward Together

Our firm has years of experience handling these specific types of injury claims. We will manage the paperwork, the adjusters, and the legal strategy. Your job is to focus on getting better.

If you are facing a shortfall after an accident, call Vito & Dollenmaier Law to speak with an experienced personal injury attorney in Schaumburg, Illinois for a straightforward evaluation of your case. Contact us today at (224)539-8821.