Uninsured Motorist (UM) coverage is an essential part of auto insurance, providing crucial protection when drivers encounter situations involving an uninsured driver. Despite legal mandates in many states requiring drivers to carry minimum liability insurance, millions of drivers either fail to maintain adequate coverage or drive without insurance altogether. This means that in the event of a car accident, there’s a significant risk that the at-fault driver may be uninsured. UM coverage serves as a safeguard, ensuring that even if you are hit by an uninsured motorist, you are not left shouldering the financial burden.
In this blog, we will explore what uninsured motorist coverage entails, why it’s essential, and the various scenarios where it applies.
What is Uninsured Motorist Coverage?
Uninsured motorist coverage is an additional component of your auto insurance policy designed to protect you if the other driver involved in an accident does not have insurance or cannot be identified. Essentially, UM coverage steps into the shoes of the uninsured at-fault driver and covers the expenses that their insurance would have handled, including medical bills, lost wages, and pain and suffering.
There are two key types of uninsured motorist coverage:
- Uninsured Motorist Bodily Injury (UMBI): This covers injuries to you and your passengers when the at-fault driver lacks insurance. It can help pay for medical expenses, lost wages, pain and suffering, and other damages associated with your injuries.
- Example: A driver in Illinois is rear-ended by an uninsured motorist. The crash causes the driver to suffer a broken leg, requiring surgery, rehabilitation, and months of pain. With UMBI coverage, the driver’s medical expenses, lost wages, and compensation for pain and suffering are covered, even though the at-fault driver does not have insurance.
Additionally, many insurance companies offer Underinsured Motorist Coverage (UIM), which comes into play when the at-fault driver has insurance but not enough to cover the full extent of your damages. UIM coverage can help bridge the gap between what the at-fault driver’s insurance covers and what your total costs, including medical expenses, lost wages, and pain and suffering, amount to.
- Example: A motorist with only $25,000 in liability coverage causes an accident, but your total damages, including medical bills and pain and suffering, are $100,000. UIM coverage would help pay the remaining $75,000 that the at-fault driver’s insurance doesn’t cover.
The Importance of Uninsured Motorist Coverage
While most people assume that they will always be compensated after a crash, the unfortunate reality is that uninsured drivers remain a common issue on the roads. According to the Insurance Research Council, about one in eight drivers is uninsured. This statistic alone underscores the need for uninsured motorist coverage.
Uninsured motorist coverage provides peace of mind and ensures that if you are involved in an accident with an uninsured driver, you won’t be left in financial ruin. Even in cases where the other driver cannot be located, such as hit-and-run accidents, UM coverage can protect you.
- Example: A hit-and-run accident in Naperville leaves a pedestrian with a fractured hip and ongoing pain. The at-fault driver cannot be identified. The pedestrian’s UM coverage steps in to cover the medical costs, lost wages, and compensation for pain and suffering.
Common Scenarios Where Uninsured Motorist Coverage Applies
Here are several situations where uninsured motorist coverage can be invaluable:
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Accidents with an Uninsured Driver
The most straightforward application of UM coverage is when you are involved in a collision where the other driver is at fault and uninsured. In this situation, if you sustain injuries, UM coverage steps in to compensate you for your medical bills, lost wages, pain and suffering, and other damages. Without UM coverage, you may be forced to pay out-of-pocket for these expenses, especially if the uninsured driver does not have the personal assets to cover your damages.
- Example: A family driving through Naperville is hit by an uninsured driver who ran a red light. The driver has no insurance and no assets. The family’s uninsured motorist coverage covers their medical expenses, lost wages, and pain and suffering.
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Hit-and-Run Accidents
In a hit-and-run accident, the at-fault driver flees the scene, leaving you unable to file a claim with their insurance provider. This is another scenario where uninsured motorist coverage is critical. Since the driver cannot be identified, it is assumed that they are uninsured, and your UM coverage will cover the costs associated with your injuries, including medical bills, lost wages, and pain and suffering. Hit-and-run accidents are particularly common in urban areas and often leave the victims in a vulnerable position without this protection.
- Example: You are driving through St. Charles, and a car suddenly rear-ends you at a stoplight before speeding away. The police cannot identify the driver, but your uninsured motorist coverage pays for your medical treatment, lost wages, and compensation for pain and suffering.
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Pedestrian and Cyclist Accidents
UM coverage is not limited to when you are driving your car. If you are walking or cycling and are struck by an uninsured driver, your uninsured motorist policy can cover your injuries. Pedestrian and bicycle accidents often result in severe injuries, leading to substantial medical bills, lost income, and long-term pain and suffering. Having uninsured motorist coverage provides vital financial support in these situations.
- Example: A cyclist in Aurora is hit by a driver who does not have insurance. The cyclist is hospitalized with serious injuries, including a broken arm and significant pain. The cyclist’s UM coverage helps cover hospital bills, lost wages, and compensation for pain and suffering.
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Passengers in Your Vehicle
If you are driving and are involved in an accident caused by an uninsured driver, your passengers are also covered under your uninsured motorist policy. This is important because passengers, like drivers, can suffer significant injuries and incur substantial medical costs, lost wages, and pain and suffering. UM coverage ensures that everyone in your vehicle is protected, regardless of the other driver’s insurance status.
- Example: You and two friends are driving through Geneva, Illinois when an uninsured driver crashes into your car. One friend suffers a concussion, while the other sustains a broken collarbone. Both of their medical expenses, lost wages, and pain and suffering are covered under your UM policy.
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Underinsured Motorist Coverage in Severe Accidents
While this blog primarily focuses on uninsured motorists, it’s worth noting the importance of Underinsured Motorist Coverage (UIM) in severe accidents. If the at-fault driver has insurance but their coverage limits are not high enough to cover your medical bills, lost wages, and pain and suffering, UIM can help fill the gap.
- Example: A driver with the state minimum of $25,000 in coverage runs a stop sign and causes a major accident that results in your medical bills, lost wages, and pain and suffering exceeding $100,000. Your UIM coverage will cover the remaining $75,000 after the at-fault driver’s insurance pays out.
Why You Should Consult a Naperville Car Accident Attorney for Uninsured Motorist Claims
Uninsured motorist claims can be highly technical and complex, often requiring a thorough understanding of insurance law and policy terms. It’s not just about filing a claim; there are critical steps that need to be followed, such as providing proper legal notice to your insurance company, initiating arbitration when necessary, and potentially even naming an arbitrator to resolve disputes. Additionally, the fine print of your policy may include specific requirements or deadlines that, if missed, could jeopardize your ability to recover compensation. Given the intricacies involved, it’s essential to consult an experienced attorney who can guide you through the process, ensure all legal steps are properly taken, and advocate for your full financial recovery.
- Example: Your attorney steps in after a serious accident involving an uninsured driver when your insurance company refuses to pay the full value of your uninsured motorist claim. The insurance company disputes the amount of damages you’ve suffered, offering a settlement far below your medical bills, lost wages, and pain and suffering. Your attorney files a formal demand for arbitration, names an arbitrator, and prepares your case. At the arbitration hearing, your attorney presents evidence of your injuries, lost income, and pain and suffering. The arbitrator ultimately awards you the full compensation you deserve under your policy, resolving the claim in your favor. Without taking these legal steps, you would have been left with inadequate compensation.
Uninsured Motorist Coverage and Litigation
In some instances, insurance companies may dispute your uninsured motorist claim. For example, they might argue that the accident wasn’t the uninsured driver’s fault or that the policy does not apply to the loss. In these situations, it may be necessary to take legal action.
Example: After a serious accident involving an uninsured driver, the insurance company disputes that it owes coverage for the loss. Your attorney must file a complaint in court asking a judge to declare your rights under the policy in order to get you the compensation you deserve.
The Safety Net of Uninsured Motorist Coverage
Uninsured motorist coverage is more than just a policy add-on—it’s an essential safety net for drivers, pedestrians, and cyclists alike. Given the number of uninsured drivers on the road and the prevalence of hit-and-run accidents, it provides much-needed peace of mind and financial security in a wide range of scenarios. Whether you are involved in a straightforward collision with an uninsured driver, a hit-and-run incident, or even as a pedestrian or cyclist, uninsured motorist coverage ensures that you and your loved ones are protected.
If you don’t already have uninsured motorist coverage, it’s worth considering as part of your auto insurance policy. It’s a small price to pay for the protection it offers in some of life’s most unexpected and challenging moments.
For assistance with an uninsured motorist claim, contact John J. Malm & Associates, an experienced Illinois uninsured motorist law firm with offices in Naperville and St. Charles. Our knowledgeable Naperville car accident attorneys are ready to guide you through every step of the process and help you recover the compensation you deserve, including damages for medical expenses, lost wages, and pain and suffering.