Fighting Your Insurance Company's UM Denial in Illinois

Last Updated: October 28, 2026

A dispute with your own insurer over an uninsured or underinsured claim is often handled under the policy’s arbitration term. 215 ILCS 5/155 can allow 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.

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, your insurer may ask you to attend an independent medical examination selected by the insurer when your policy allows it. The examining doctor is paid by the insurer and may reach conclusions that differ from your treating providers. An attorney can help you assess whether the request complies with your policy and compare the examiner’s report to your records.

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

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 can allow attorney fees, other costs, and an added amount in an action on the policy when a court finds the action or the delay vexatious and unreasonable.

You also have the right to proceed to arbitration if negotiations fail. When your policy requires or allows arbitration, the process and binding effect depend on that policy and on applicable law. For uninsured coverage, 215 ILCS 5/143a(1) describes Association or three-arbitrator routes and limits on binding amounts; whether an underinsured dispute uses the same clause depends on your policy. An attorney can help you review the arbitration term, organize evidence, and respond to the insurer’s positions in the forum your policy provides. See our UM/UIM arbitration overview for more context.

How to Protect Yourself

Before you respond to a recorded statement, examination, medical authorization, or other cooperation request, consult an attorney and read what your policy requires. Valid cooperation duties can still apply, and refusing a request your policy requires can affect your claim. Do not sign a broad authorization or give a statement without understanding what you are agreeing to provide. 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, personal injury lawyer Robert Parker can level the playing field. Parker & Parker represents people with insurance disputes in Peoria and Central Illinois. Contact 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

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. A separate claim under 215 ILCS 5/155 depends on a court finding that an action on the policy, or a delay, was vexatious and unreasonable. A denial by itself is not that finding.

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