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Why Your Own Insurer Opposes Your Claim

Filing a UM/UIM claim creates an unusual legal dynamic. Unlike a standard car accident case where you pursue the other driver’s insurance company, a UM/UIM claim is a dispute with your own insurer—the same company you have been paying premiums to for years. Despite the customer relationship, your insurer has a financial incentive to minimize or deny your claim, and many policyholders are surprised by how aggressively their own insurance company fights back.

Understanding the tactics insurers use can help you protect your rights and avoid costly mistakes.

Common Tactics Insurance Companies Use

Disputing that the other driver was uninsured or underinsured. Your insurer may argue that the at-fault driver had adequate coverage, that you should pursue the other driver’s policy further, or that the other driver’s limits have not actually been exhausted. This can delay your claim for months.

Challenging the severity of your injuries. Even with clear medical evidence, insurers may hire their own medical experts to perform independent medical examinations (IMEs) designed to minimize your injuries. These examinations are conducted by doctors paid by the insurance company, and their reports often downplay the seriousness of your condition.

Blaming pre-existing conditions. If you had any prior injuries or medical conditions, your insurer may argue that your current symptoms are related to those pre-existing conditions rather than the accident. This is one of the most common defenses in UM/UIM claims.

Delaying the process. Some insurers intentionally slow-walk investigations, request unnecessary documentation, or take weeks to respond to communications. The goal is to wear you down financially and emotionally until you accept a lower settlement.

Making lowball offers. Your insurer may offer a settlement that covers only a fraction of your actual damages, hoping you will accept it rather than go through the arbitration process.

Your Rights Under Illinois Law

Despite these tactics, you have significant legal protections. Your insurer is required to investigate your claim promptly and fairly. They must provide a reasonable basis for any denial. They cannot misrepresent your policy terms. They cannot use delay as a negotiation strategy. If they violate these obligations, they may be liable for bad faith under Illinois law.

You also have the right to proceed to arbitration if negotiations fail. In arbitration, a neutral panel evaluates the evidence and issues a binding decision. Having an experienced attorney represent you in arbitration significantly improves your chances of a favorable outcome.

How to Protect Yourself

Do not give a recorded statement to your insurer without first consulting an attorney. Be cautious about signing medical authorizations that give the insurer broad access to your entire medical history. Keep detailed records of all communications with your insurer. Do not accept a settlement offer without understanding the full value of your claim. And do not wait too long—Illinois has time limits for pursuing UM/UIM claims, and delay works in the insurer’s favor.

If your insurance company is fighting your UM/UIM claim, the personal injury attorneys at Parker & Parker can level the playing field. We have been handling insurance disputes in Peoria and Central Illinois for over 25 years. Contact us at (309) 674-0044 for a free consultation.

Injured? Get a Free Case Review.

The personal injury attorneys at Parker & Parker have been fighting for accident victims in Peoria and across Central Illinois for over 25 years. Call (309) 674-0044 or contact us online for a free, no-obligation consultation.

Frequently Asked Questions

Why does my own insurance company fight my UM/UIM claim?

Your insurer has a financial incentive to minimize payouts, even on claims from their own policyholders. UM/UIM claims are paid from your insurer’s funds, so they may use various tactics to reduce or deny your claim.

What should I do if my insurer denies my UM/UIM claim?

Do not accept the denial without consulting an attorney. Request a written explanation of the denial, document all communications, and contact a personal injury lawyer who can evaluate whether the denial was legitimate or constitutes bad faith.

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

In Illinois, UM/UIM disputes typically go to arbitration rather than court. However, if your insurer acts in bad faith—unreasonably denying, delaying, or undervaluing your claim—you may have a separate legal claim for bad faith damages.

Dealing with injuries after a car crash can feel overwhelming. Our our Peoria personal injury team can guide you through every step of the legal process.

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.

When Your Own Insurance Company Fights Your UM/UIM Claim in Illinois