I’ve handled injury cases in Illinois for more than 40 years, and one question still comes up in almost every consultation:
“What happens if the other driver doesn’t have insurance, or not enough of it?”
It’s a fair concern. Every week, people in Chicago and across the state are hit by drivers who are uninsured or carry the bare minimum coverage. Even worse, many victims don’t realize how serious the financial impact can be until it’s too late.
Let’s talk about what uninsured (UM) and underinsured (UIM) coverage really means, how these claims work under Illinois law, and what steps to take if you’re hit by someone who can’t pay for your damages.
(If you’re looking for general information after any crash, see our full Chicago car accident lawyer guide for immediate steps to protect your rights.)
The Reality of Uninsured Drivers in Illinois
Even though Illinois law requires every driver to carry auto insurance, not everyone follows the rules. The Illinois Department of Insurance estimates that about one in eight drivers on the road are uninsured.
That means if you’re driving in Chicago, there’s a real chance that the driver who hits you might not have a valid policy, or might have limits far too low to cover your medical bills, lost wages, and pain.
That’s where your own insurance coverage can become a lifeline.
Understanding Uninsured and Underinsured Coverage
When you buy car insurance in Illinois, the law requires your policy to include Uninsured Motorist (UM) coverage and Underinsured Motorist (UIM) coverage unless you reject it in writing.
Here’s the difference:
- Uninsured Motorist (UM) coverage protects you if you’re injured by a driver who has no insurance at all.
- Underinsured Motorist (UIM) coverage applies when the other driver has insurance, but their policy limits are too low to cover your total damages.
For example, if the at-fault driver’s policy covers $25,000 and your total damages are $100,000, your UIM coverage can pay the remaining $75,000, up to your own policy limit.
In short, this coverage steps in to fill the financial gap when the other driver can’t.
Common Scenarios Where UM/UIM Coverage Applies
Over the years, I’ve seen UM and UIM coverage make all the difference for clients who thought they had no options. Here are a few examples where it often applies:
- A hit-and-run driver causes a crash and disappears before being identified.
- The at-fault driver lets their policy lapse without telling anyone.
- A driver only has Illinois’ minimum coverage ($25,000 per person / $50,000 per accident), which is rarely enough for serious injuries.
- You’re hit by a delivery or rideshare driver whose personal insurance won’t cover the crash.
That last situation is increasingly common in Chicago. If your accident involves a rideshare driver, our Uber and Lyft accident lawyer explains how coverage from those companies interacts with your own insurance.
How to File an Uninsured or Underinsured Motorist Claim
Many people are surprised to learn that a UM or UIM claim is filed with your own insurance company, not the at-fault driver’s.
That doesn’t mean your insurer automatically treats you fairly. In fact, once you file a claim, your relationship with your insurer changes. They’re no longer acting as your advocate but as the opposing party in a potential dispute.
Here’s how the process usually works:
- Notify your insurer immediately after learning the other driver is uninsured or underinsured.
- Provide all relevant documents, including the police report, photos, and medical records.
- Wait for the other driver’s policy limits to be verified. For UIM claims, your insurer must confirm the exact amount available under the other policy before paying anything.
- Negotiate your UM/UIM settlement. If you and your insurer disagree on the value, you may need arbitration or, in some cases, litigation.
That’s where an experienced car accident lawyer becomes crucial — to prove the true value of your injuries and make sure your insurer doesn’t undervalue your claim.
The Hidden Challenges of UM/UIM Claims
One of the biggest surprises for clients is that their own insurance company can act just like the opposing side.
Even though you’ve paid premiums for years, insurers often try to:
- Minimize your injuries or suggest you’re partially at fault.
- Use independent medical exams to challenge your doctors’ findings.
- Delay or deny claims based on technicalities.
- Offer settlements that fall far short of your losses.
These tactics are frustrating, but they’re also common. That’s why I tell every client: your insurance company is not your enemy, but it’s not your ally either. They’re a business, and like any business, their goal is to protect their bottom line.
Stacking Coverage in Illinois
Some drivers in Illinois don’t realize they may be able to stack UM and UIM coverage if they have multiple vehicles under one policy.
For instance, if you have two vehicles insured for $100,000 each in UM/UIM coverage, stacking could allow you to access up to $200,000 in protection.
Not every policy allows stacking, but it’s worth reviewing your declarations page carefully or having your lawyer examine it. It can make a major difference in cases involving serious or permanent injuries.
What Happens If You Don’t Have UM/UIM Coverage
If you declined UM or UIM coverage when purchasing your policy, your options become more limited. You may still be able to:
- File a personal injury lawsuit directly against the at-fault driver.
- Seek compensation through other household policies, if available.
- Use health insurance to pay medical bills, then pursue subrogation recovery.
However, collecting from an uninsured driver is often difficult since most lack significant assets. This is why I always recommend carrying more than the minimum UM/UIM limits on your policy. It’s one of the few protections that truly pays off when you need it most.
Your Protection and Next Steps
If you were hit by an uninsured or underinsured driver in Illinois, don’t assume you’re out of options. These cases can be complex, but the law provides several paths to recovery if you act quickly and know how to use your coverage.
At Phillips Law Offices, we’ve helped thousands of people across Chicago navigate UM and UIM claims, from initial filings to arbitration and trial. We understand how insurance companies evaluate these claims, and we know how to make sure they pay what’s fair.
If you’re unsure what your policy covers or how to start your claim, reach out for a free consultation. We’ll review your coverage, explain your rights, and guide you through the process step by step.
Call (312) 346-4262
161 N Clark St, Suite 4925, Chicago, IL
Free Consultation | No Fee Unless You Win
Interesting Reads:
Chicago Uninsured Motorist Lawyer
Why is it important to have uninsured motorist insurance?
Common Questions About Car Accidents and Uninsured Drivers
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