Skip to Content
Call or Text for a Free Consultation 309-673-0069
Call or Text for a FREE CONSULTATION 309-673-0069

The Complete Guide to Uninsured & Underinsured Motorist Claims in Illinois

Mon 23 Feb, 2026 / by / Uninsured / Underinsured Motorist Claims

**UM/UIM claims in Illinois compensate you when the at-fault driver lacks adequate insurance coverage.** Your own auto insurance policy provides this protection regardless of who caused the accident. Uninsured motorist coverage applies to hit-and-run drivers; underinsured covers gaps in the other driver’s liability limits.

The Complete Guide to Uninsured & Underinsured Motorist Claims in Illinois

You carry insurance for exactly this reason — and then your own company fights you when you need it. Uninsured motorist (UM) and underinsured motorist (UIM) claims are some of the most frustrating cases we handle because the person you are fighting is your own insurer. This guide covers everything Illinois drivers need to know about UM/UIM coverage: what it is, when it applies, how to file a claim, and what to do when your insurance company pushes back.

At Parker & Parker Attorneys at Law, we handle UM/UIM disputes throughout the Peoria area. Rob Parker has taken these claims through arbitration and litigation, recovering compensation when insurers tried to deny or lowball legitimate claims. Contact us for a free consultation.

Table of Contents

What Is UM/UIM Coverage?

Uninsured motorist (UM) coverage pays for your injuries when the at-fault driver has no liability insurance at all. Underinsured motorist (UIM) coverage kicks in when the at-fault driver has insurance but not enough to cover your damages.

Under Illinois law (215 ILCS 5/143a), every auto policy must include UM/UIM coverage unless you specifically reject it in writing. The minimum UM/UIM limits match the state minimum liability limits: $25,000 per person / $50,000 per accident. But you can — and should — carry higher limits. For a deeper explanation, see our overview of UIM coverage in Illinois.

Why Illinois Drivers Need UM/UIM Coverage

Illinois requires only $25,000/$50,000 in liability coverage. That is barely enough to cover a broken leg, let alone a serious crash with surgery, rehab, and months of lost work. Our analysis of Illinois minimum insurance requirements explains exactly why these limits fall short.

Roughly 1 in 7 Illinois drivers is uninsured. Many more carry only the minimum. Without UM/UIM coverage, you absorb the gap between what the at-fault driver’s insurance pays and what your injuries actually cost.

How to File a UM Claim: Step by Step

Filing a UM or UIM claim is different from filing against the other driver’s insurer. You are making a claim on your own policy, which triggers a different set of rules and timelines. Our step-by-step UM filing guide walks through the entire process, but the essentials are:

  1. Report the accident to your insurer immediately. Your policy has prompt-notice requirements. Delay can give the insurer grounds to deny.
  2. Document the at-fault driver’s lack of coverage. Get the police report. If the driver had insurance, get the policy limits in writing from their carrier.
  3. Gather your medical records and bills. Same as any injury claim — you need to prove the nature and extent of your injuries.
  4. Submit a formal demand. Present your damages with supporting documentation to your own insurer.
  5. Negotiate or go to arbitration. Most UM/UIM policies require binding arbitration rather than a lawsuit.

Stacking Coverage to Maximize Your Protection

If you have multiple vehicles on your policy — or multiple auto policies — you may be able to “stack” your UM/UIM coverage. Stacking means combining the limits from each vehicle or policy to create a larger pool of coverage.

Illinois law generally allows stacking unless the policy contains a valid anti-stacking provision. Our guide to stacking UM/UIM coverage explains how this works and when anti-stacking clauses are enforceable. Also see our article on how UM/UIM works with multiple vehicles.

Hit-and-Run Accidents and UM Coverage

When a driver hits you and flees, you likely will never identify them or their insurance. Your UM coverage treats a hit-and-run as an uninsured motorist scenario. But there are additional requirements:

  • You generally must report the hit-and-run to police promptly
  • Some policies require physical contact between your vehicle and the fleeing vehicle
  • You need corroborating evidence that the hit-and-run actually occurred

Phantom Vehicle Claims

A “phantom vehicle” is a car that causes an accident without making contact — for example, a vehicle that swerves into your lane, causing you to crash while avoiding it, and then drives away. These phantom vehicle claims are harder to prove because there is no physical evidence of the other car’s involvement. Illinois requires independent corroborating evidence beyond just your own testimony.

UIM Claims After Truck Accidents

Commercial trucks cause devastating injuries. Even when the trucking company has the federally required $750,000 minimum coverage, catastrophic injuries — spinal cord damage, traumatic brain injury, multiple surgeries — can exceed those limits. Our guide to UIM claims after truck accidents covers the unique issues in these cases, including how to layer UIM coverage on top of the trucking company’s policy.

Coverage for Passengers

If you were a passenger in a vehicle hit by an uninsured or underinsured driver, you may have access to multiple UM/UIM policies: the driver’s policy, your own policy (if you have one), and potentially a household member’s policy. Our UM/UIM coverage for passengers guide explains the priority rules and how to maximize your recovery.

Multiple Vehicles on One Policy

Families with multiple cars on one policy often do not realize they may be able to stack those limits. A policy with $100,000 UM/UIM per vehicle and three vehicles could potentially provide $300,000 in coverage. Whether you can actually stack depends on the policy language. Our multiple vehicle UM/UIM guide breaks down the analysis.

The Arbitration Process

Most UM/UIM policies in Illinois require disputes to be resolved through binding arbitration rather than a jury trial. Arbitration is faster but comes with its own strategic considerations. Our UM/UIM arbitration guide explains what to expect — from selecting arbitrators to presenting evidence to understanding the decision.

Bad Faith Denials

Your insurance company has a duty to deal with you fairly and in good faith under 215 ILCS 5/155. When insurers unreasonably deny, delay, or lowball UM/UIM claims, they may be acting in bad faith. Our bad faith denial guide covers what constitutes bad faith, the penalties insurers face (including statutory damages, attorney fees, and interest), and how to build a bad faith case alongside your UM/UIM claim.

Coordinating with MedPay

Medical Payments (MedPay) coverage pays your medical bills regardless of fault. It sits alongside your UM/UIM coverage but works differently. Our guide to coordinating MedPay with UM/UIM claims explains when to use MedPay first, when to hold it in reserve, and how to avoid double-recovery issues that can complicate your claim.

When Your Insurer Fights Your Claim

The most frustrating reality of UM/UIM claims is that your own insurance company becomes your adversary. Common insurer tactics include:

  • Disputing causation — claiming your injuries preexisted the accident
  • Lowball offers — offering a fraction of your documented damages
  • Delay tactics — dragging the process out hoping you will accept less
  • Surveillance — hiring investigators to find footage that contradicts your injury claims
  • IME abuse — sending you to a “defense medical examiner” who minimizes your injuries

Having an experienced attorney levels the playing field. Your insurer knows which claimants have lawyers and which do not — and their offers reflect it.

Frequently Asked Questions

Do I have to pay a deductible on my UM/UIM claim?

Most Illinois UM/UIM policies do not have deductibles, unlike collision coverage. Check your declarations page to confirm.

Will filing a UM/UIM claim raise my premiums?

It should not — you were not at fault. Illinois law prohibits insurers from surcharging you for claims where you were not at fault. In practice, some insurers may still adjust rates at renewal, which is why documentation matters.

What if the at-fault driver has some insurance but not enough?

That is a UIM claim. You recover the at-fault driver’s full policy limits first, then file a UIM claim with your insurer for the remaining damages up to your UIM limits.

Can I sue my own insurance company over a UM/UIM dispute?

If your policy requires arbitration, you typically cannot file a lawsuit for the underlying claim. However, you may have a separate cause of action for bad faith under 215 ILCS 5/155 if the insurer unreasonably denied or delayed your claim.

How long does a UM/UIM claim take to resolve?

Simple cases may settle in a few months. Disputed claims that go to arbitration can take 6-12 months or longer. Complex cases with bad faith allegations may take even longer.

What if I rejected UM/UIM coverage when I bought my policy?

If you signed a valid written rejection, you generally cannot make a UM/UIM claim. However, if the rejection form was defective or you were not properly informed, the rejection may be invalid — making the minimum statutory coverage apply.

Talk to a Peoria UM/UIM Attorney

UM/UIM claims pit you against your own insurance company. You need someone on your side who understands the policy language, the arbitration process, and the bad faith remedies available under Illinois law. Rob Parker and the team at Parker & Parker have the experience to handle these disputes from initial claim through arbitration.

Call (309) 672-9000 or contact us online for a free consultation. We handle UM/UIM claims on a contingency fee basis — you pay nothing unless we recover compensation for you.

More Resources

Explore these in-depth articles on specific topics covered in this guide:

Truck accident cases involve complex regulations and multiple liable parties. Our Peoria personal injury attorneys experienced in trucking cases have the experience to handle these challenging claims.

Need a lawyer? This article is part of our Peoria Uninsured Motorist Lawyer practice area. Call Parker & Parker at 309-673-0069 for a free consultation.

Related Articles

Categories