A serious car accident can create medical bills, lost income, pain, disability, and future treatment costs that quickly exceed the amount of insurance carried by the driver who caused the crash. This problem is especially significant in Illinois because a driver can legally satisfy the state’s minimum bodily injury insurance requirement with only $25,000 of coverage for one injured person and $50,000 total when two or more people are injured in the same collision.
A hospital stay, surgery, rehabilitation, or several months away from work can consume that amount before the full impact of the injury is known. When the at-fault driver’s liability coverage is not enough, the injured person’s own underinsured motorist coverage may provide another source of compensation. Our Hoffman Estates Auto Accident Lawyer can investigate every available insurance policy and determine whether an underinsured motorist claim should be pursued in addition to the liability claim against the negligent driver.
For people injured in Hoffman Estates, and other northwest suburban communities, understanding insurance limits can be just as important as proving who caused the crash. A driver may clearly be at fault and still carry too little insurance to pay the full value of the injuries. Hess Injury Law Firm examines liability coverage, underinsured motorist coverage, umbrella policies, employer coverage, vehicle ownership, and other potential sources of recovery before assuming that the at-fault driver’s policy is the only insurance available.
What Are The Minimum Auto Insurance Limits In Illinois?
Illinois law requires most motorists to maintain liability insurance. Under 625 ILCS 5/7-601, vehicles subject to the mandatory insurance law must be covered by liability insurance in amounts that are not less than the minimum limits established by 625 ILCS 5/7-203.
The current Illinois minimum limits are:
- $25,000 for bodily injury or death to one person in one accident.
- $50,000 total for bodily injury or death to two or more people in one accident.
- $20,000 for property damage in one accident.
These limits are sometimes described as 25/50/20 coverage. They represent the minimum amount a qualifying Illinois driver can carry, not the amount necessarily required to fully compensate someone who suffers serious injuries. The Illinois Department of Insurance itself cautions consumers that minimum liability limits may not be enough to fully protect against losses resulting from a serious accident.
Why $25,000 May Be Far Too Little After A Serious Crash
A $25,000 bodily injury policy may sound substantial until an accident victim begins receiving medical bills. An ambulance ride, emergency department evaluation, CT scans, MRIs, orthopedic care, physical therapy, pain management, and missed work can quickly push financial losses beyond that amount. When surgery is required, the gap between available liability insurance and actual damages may become much larger.
Consider a driver who suffers a lumbar disc injury after being struck at high speed. The injured person undergoes emergency treatment, several months of therapy, epidural injections, and ultimately spinal surgery. The total claim may include past medical expenses, future medical treatment, lost earnings, diminished earning capacity, pain and suffering, disability, and loss of normal life. If the negligent driver carries only $25,000 in bodily injury coverage, that liability policy may represent only a small portion of the damages.
The problem becomes even more serious when several people are injured in the same crash. The $50,000 per-accident limit is generally the total amount available for all bodily injury claims under a minimum-limit policy. If three or four occupants suffer significant injuries, the available liability proceeds may have to be divided among multiple claimants.
What Is An Underinsured Motorist Claim?
Underinsured motorist coverage, commonly called UIM coverage, is designed for situations where the at-fault driver has bodily injury insurance but does not have enough coverage compared with the injured person’s applicable UIM limits.
Illinois defines an underinsured motor vehicle in 215 ILCS 5/143a-2. In general, a vehicle is considered underinsured when the bodily injury liability limits available from the legally responsible vehicle are less than the injured insured’s underinsured motorist limits. Illinois law further provides that the UIM insurer’s liability is reduced by amounts actually recovered from applicable bodily injury liability coverage.
This means UIM coverage does not simply add the full amount of the injured person’s policy on top of the negligent driver’s policy. The way the statutory setoff works must be considered carefully.
For example, suppose an injured person has $100,000 in applicable UIM coverage and the negligent driver has a $25,000 bodily injury limit. If the conditions of the policy and Illinois law are satisfied, the UIM coverage may potentially provide up to the difference between the applicable $100,000 UIM limit and the amount recovered from the at-fault driver’s bodily injury coverage.
Why Underinsured Motorist Coverage Is Different From Uninsured Motorist Coverage
The terms are similar, but they address different problems. Uninsured motorist coverage, or UM coverage, generally applies when the negligent driver has no applicable liability insurance or in certain hit-and-run situations. Illinois law requires uninsured motorist bodily injury protection at least equal to the minimum limits established under the Illinois Vehicle Code. 215 ILCS 5/143a governs this protection.
Underinsured motorist coverage applies when the responsible driver has insurance, but the liability limits are lower than the applicable UIM limits carried by the injured insured. Under 215 ILCS 5/143a-2, Illinois policies with uninsured motorist limits above the statutory minimum generally include corresponding underinsured motorist protection.
The distinction matters because a driver carrying the Illinois minimum is not uninsured. That driver is insured, but may be severely underinsured for a major injury claim.
Your Own Insurance Company Does Not Automatically Become Your Advocate
People are often surprised when a UIM claim becomes disputed. They may assume that because they have paid premiums for years, their own insurer will simply pay the remaining value of the claim after the negligent driver’s coverage is exhausted.
That is not necessarily how the process works.
A UIM insurer may investigate liability, medical causation, the severity of the injuries, prior medical conditions, treatment expenses, lost income, comparative negligence, and the overall value of damages. The insurer may dispute whether the claim is worth more than the liability proceeds already obtained. It may also rely on policy conditions and statutory provisions that must be satisfied before UIM benefits are payable.
This is one reason an underinsured motorist claim should not be treated as a routine administrative request. It remains an insurance claim involving potentially substantial financial exposure for the insurer.
Why The At-Fault Driver’s Policy Limits Should Be Investigated Early
One of the first insurance questions after a serious collision should be how much liability coverage is actually available. If the injuries appear significant and the at-fault driver carries minimum limits, the legal strategy may need to account for underinsurance almost immediately.
The attorneys at Hess Injury Law Firm may investigate whether additional coverage exists through:
- The negligent driver’s personal auto policy.
- A vehicle owner’s separate liability coverage.
- An employer’s commercial policy if the driver was working at the time of the crash.
- An umbrella or excess liability policy.
- A rideshare or delivery company’s applicable coverage.
- A commercial motor vehicle policy.
- The injured person’s own UIM coverage.
- Household policies that may provide additional applicable coverage.
- Other legally responsible parties.
This investigation can be especially important when the negligent driver tells police or the injured person that he or she has “full coverage.” That phrase has no reliable meaning for determining how much bodily injury insurance is available. The actual declarations, policy language, coverage limits, and circumstances of the crash must be reviewed.
Why Accepting The $25,000 Liability Limit Too Quickly Can Create Problems
When injuries are clearly serious, the liability insurer may offer its policy limit. Receiving the full $25,000 may sound like a favorable development, but an injured person should be careful before signing a release or accepting the settlement without understanding how it affects other insurance claims.
A release generally resolves claims against the parties identified in the agreement. If there may be another responsible party, employer, vehicle owner, commercial policy, or UIM carrier involved, the effect of the settlement should be evaluated first.
An injured person’s own UIM policy may also contain notice, consent, exhaustion, cooperation, or settlement-related requirements. The language of the policy and applicable Illinois law should be examined before finalizing the liability settlement. A Hoffman Estates Auto Accident Lawyer can coordinate the liability and UIM portions of the case so that pursuing one source of compensation does not unnecessarily jeopardize another.
What Happens When Several People Are Injured, And The Driver Has Only $50,000 Per Accident?
Illinois’ minimum bodily injury requirement is $25,000 per person, but it is also subject to a $50,000 total limit when two or more people suffer bodily injury or death in the same accident.
This can create serious problems in a multi-vehicle crash or when several family members are injured in one vehicle. Suppose four people suffer substantial injuries. Even if each person’s individual damages exceed $25,000, the negligent driver’s carrier may have only $50,000 total available for all bodily injury claims.
The resulting allocation can become complicated. The available insurance proceeds may have to be divided among several injured people, and the amount one claimant receives can affect what remains for others. Separate UIM claims may also need to be evaluated based on the applicable policies, insured status, limits, and circumstances.
Serious Injuries That Frequently Exceed Minimum Liability Limits
A minimum-limit policy can be inadequate even when an accident victim ultimately makes a good recovery. More severe injuries can create losses many times larger than the available $25,000 per-person liability limit.
Claims that may exceed minimum coverage include accidents involving:
- Traumatic brain injuries.
- Spinal cord injuries.
- Herniated cervical or lumbar discs.
- Multiple fractures.
- Hip and pelvic fractures.
- Shoulder and knee surgeries.
- Internal organ injuries.
- Severe burns.
- Permanent nerve damage.
- Amputations.
- Permanent scarring and disfigurement.
- Long-term disability.
- Wrongful death.
The value of a claim does not depend solely on the diagnosis. Medical expenses, future care, income loss, disability, pain, loss of normal life, and the long-term effect of the injuries all may be relevant.
Contact Our Hoffman Estates Auto Accident Lawyer For A Free Consultation
A serious injury does not become less serious because the driver who caused it purchased only the minimum insurance required by Illinois law. When medical expenses, lost income, future treatment, disability, and pain substantially exceed a $25,000 liability limit, the attorneys at Hess Injury Law Firm can investigate whether underinsured motorist coverage or other sources of compensation may be available.
Founding attorney Matt Hess has handled thousands of insurance claims and hundreds of lawsuits during more than sixteen years of practice. His prior experience working for a major multi-line insurance carrier gives the firm direct insight into how insurers evaluate claims, interpret coverage, and respond when serious injuries exceed policy limits. The firm’s goal is to identify the full value of the claim and every legitimate source of recovery rather than assuming the negligent driver’s minimum policy determines what the case is worth.
Contact our Hoffman Estates underinsurance claim lawyers by calling (847) 708-4377 to receive your free consultation. Our attorneys can examine the at-fault driver’s insurance, review the injured person’s UIM coverage, identify other possible policies or responsible parties, and explain what steps may be available when the Illinois minimum is not enough.
