Bad Faith Denial of UM/UIM Claims in Illinois

Last Updated: October 24, 2026

In an action on a policy, or for an unreasonable delay in settling a claim, 215 ILCS 5/155 lets the court allow attorney fees, other costs, and an added amount when it finds the action or the delay vexatious and unreasonable. A denial by itself is not that finding. The added amount may not exceed any one of 60 percent of the recovery exclusive of costs, $60,000, or the recovery above the amount the company offered before the action.

Your Insurer Has a Duty of Good Faith

A dispute with your own insurer over an uninsured or underinsured claim can be an action on the policy. 215 ILCS 5/154.6 lists improper claims practices when they are committed without just cause and in violation of section 154.5. It does not set a response deadline.

Section 155 applies in an action where the company’s liability on a policy, or the amount of the loss, is in issue, or where the claim is an unreasonable delay in settlement. The court must find that the action or the delay was vexatious and unreasonable.

Common Examples of Bad Faith in UM/UIM Claims

The listed acts in section 154.6 are improper claims practices only in that setting. A delay, a denial, or a low offer is not, by itself, a finding under section 155.

Insurance companies sometimes use delay as a strategy, hoping that injured policyholders will accept a lowball settlement out of financial desperation. Others may dispute the connection between the accident and your injuries, even when the medical evidence is clear.

Proving Bad Faith Under Illinois Law

Section 155 requires the court to find that the action or the delay was vexatious and unreasonable.

The court may allow reasonable attorney fees, other costs, and an added amount. That added amount may not exceed any one of 60 percent of the recovery exclusive of costs, $60,000, or the recovery above the company’s pre-suit offer. The section stops at those taxable costs.

Protecting Yourself Against Bad Faith Tactics

Document everything. Keep copies of all correspondence with your insurer, including letters, emails, and notes of phone conversations. Follow up verbal communications with written confirmation. Keep records of all deadlines and response times. If your insurer asks for medical records or other documentation, provide it promptly and keep proof that you did so.

If your insurer denies your claim or makes an unreasonably low offer, do not accept it without consulting a personal injury attorney. An experienced lawyer can evaluate whether your insurer’s conduct rises to the level of bad faith and advise you on the best course of action.

When to Contact an Attorney

If your UM/UIM claim has been denied, if your insurer is dragging its feet, or if the settlement offer is far below the value of your injuries, contact Parker & Parker right away. We represent policyholders throughout Central Illinois in UM/UIM disputes and bad faith insurance claims. Call us at 309-673-0069 for a free consultation.

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Parker & Parker reviews personal injury claims for people in Peoria and across Central Illinois. Call 309-673-0069 or contact us online for a free consultation.

Frequently Asked Questions

What is bad faith in a UM/UIM claim?

Section 155 allows attorney fees, other costs, and an added amount when a court finds that an action on the policy, or a delay, was vexatious and unreasonable. A denial by itself is not that finding.

What can I recover in a bad faith insurance claim in Illinois?

The court may allow reasonable attorney fees, other costs, and an added amount that may not exceed any one of 60 percent of the recovery exclusive of costs, $60,000, or the recovery above the pre-suit offer.

How do I know if my insurer is acting in bad faith?

A delay, a denial, a low offer, or a disputed investigation is a reason to read the policy and the correspondence. None of those events is, by itself, a finding under section 155.

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