What Happens When You Have Been Hit by an Uninsured Driver in Illinois?
Most people find out too late that they failed to have enough underinsured motorist coverage (UIM coverage). This happens after a motor vehicle collision when they find out that the responsible driver does not have enough liability coverage. The typical policy limits of $100,000 per person and $300,000 per incident are simply not enough. The medical bills in the first couple of days after a serious motor vehicle collision can exceed the policy limits.
The minimum UIM coverage should be $500,000 per person. If possible, consideration should be given to securing an umbrella policy at least $1 million in order to make sure that you have enough insurance coverage in the event that the other driver does not.
Illinois Does Not Allow UIM Stacking
Another common misconception is with respect to “stacking”. In Illinois, you may not “stack” the UIM coverage on top of the available coverage from the other driver. For instance, if the other driver has $100,000 in liability coverage and you have $500,000 in UIM coverage, the net UIM coverage available is $400,000. This is because you cannot stack both policies to get to $600,000. Rather the maximum coverage available is $500,000, with $400,000 from your UIM coverage and $100,000 from the responsible driver’s underlying policy applied. This is the effect of the provisions of the Illinois Insurance Code, as well as the language that is written into every policy issued in Illinois.
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Check your declarations page to find out if your automobile insurance policy has enough UIM coverage to make sure that you are protected if you are seriously injured as a result of an underinsured driver. Ask your insurance agent to review or audit your policy with you to determine whether you need to increase your UIM coverage. Don’t wait until it’s too late.