There is no fixed formula for valuing an uninsured motorist claim. The value depends on the seriousness of your injuries, the available insurance coverage, the strength of the evidence, and how the accident has affected your life.
Medical bills matter, but they are only part of the analysis. Two people with similar injuries can have very different outcomes depending on their treatment, lost income, credibility, permanent limitations, and uninsured motorist policy limits.
In Illinois, uninsured motorist coverage can apply when you are injured by a hit-and-run driver or an at-fault driver who has no auto liability insurance. Your claim is usually made through your own insurance company, even though you did nothing wrong.
Key Factors That Determine the Value of an Uninsured Motorist Claim
The value of a UM claim may depend on:
- The type and severity of your injury
- Whether the injury is temporary or permanent
- Emergency room care, surgery, therapy, or specialist treatment
- Total medical expenses
- Lost wages or reduced earning ability
- Pain, disability, disfigurement, and loss of normal life
- Whether liability is clear or disputed
- Your credibility and consistency
- The amount of available UM coverage
- Medical liens or health insurance reimbursement claims
These factors affect what the insurance company may offer and what an arbitrator may award if the claim does not settle.
Uninsured Motorist Coverage Is Critical
Uninsured motorist coverage protects you when the at-fault driver has no insurance or cannot be identified after a hit-and-run accident.
Illinois requires uninsured motorist bodily injury coverage of at least $25,000 per person and $50,000 per accident. Those limits may not be enough after a serious crash involving surgery, hospitalization, lost income, or permanent injury.
The amount of coverage available under your own policy is often one of the most important limits on recovery. If your injury claim is worth more than your UM limits, your recovery may still be capped by the coverage you purchased.
Covered and Non-Covered Scenarios in Uninsured Motorist Accidents
UM coverage depends on your policy language and the facts of the accident.
Common situations that may support a UM claim include:
- You were hit by a driver with no auto insurance.
- You were injured by a hit-and-run driver.
- You were a passenger in a vehicle hit by an uninsured driver.
- You were walking or biking and were struck by an uninsured driver.
- You were driving a vehicle you did not own, but available UM coverage applies under the policy.
Hit-and-run and phantom vehicle claims can be more complicated. Some policies require physical contact with the unidentified vehicle. In other situations, independent evidence may become important. These claims should be reviewed carefully before assuming coverage applies or does not apply.
UM Claim Example
Consider two back injury claims.
A back sprain that improves with conservative treatment may have a lower value than a herniated disc that causes radiating pain, requires injections, limits work, or leads to surgery.
The difference is not just the diagnosis. The insurance company or arbitrator will look at the medical records, imaging studies, treatment history, pain complaints, work restrictions, prior injuries, and whether the condition was caused or aggravated by the crash.
Medical Bills are the Other Big Factor in Evaluating Your Injury Claim
There is no fixed formula for determining the value of an uninsured motorist claim. Some claims may resolve for a few thousand dollars, while others involving severe injuries and high policy limits can reach hundreds of thousands of dollars or more.
The final value depends on how the valuation factors apply to your specific case and the limits of your insurance coverage.
Pain, disability, and disfigurement, the “non-economic damages”
Your pain, disability, and disfigurement should be significant factors in evaluating the worth of your UM claim. How do we assess these items? Think about frequency, severity, and effects. For example, was your pain constant or occasional, mild or severe, and something that prohibited you from everyday activities, or was it just an annoyance? Be prepared to provide evidence to support these claims and persuade the insurer.
Insurance Payment Not a Priority for Insurers
Insurance companies want to settle claims for the lowest amount possible. Their business strategy is to advertise extensively and then collect insurance premiums. Paying uninsured motorist claims is not a priority for insurers because it reduces their profitability.
Please keep in mind that the value of your claim is probably higher than what the insurance company is offering. Being prepared for a lower offer can help you manage the process more effectively. Many clients have reported being surprised by the harsh treatment they received from insurance companies.
When an Uninsured Motorist Claim Involves Underinsured Motorist Coverage
Uninsured motorist coverage applies when the at-fault driver has no insurance.
Underinsured motorist coverage may apply when the at-fault driver has insurance, but not enough to cover your damages.
For example, if the at-fault driver has low liability limits and your injuries are serious, your UIM coverage may provide an additional source of recovery after the at-fault driver’s available coverage is addressed.
UM and UIM claims are related, but they are not identical. The procedure, notice requirements, policy language, and settlement strategy may differ.
Video: How to Collect an Underinsured Motorist Claim
Where Is an Uninsured Motorist Claim Decided in Illinois?
Many Illinois UM claims that do not settle are resolved through arbitration rather than a courtroom trial. The exact process depends on the insurance policy.
Some policies use a single arbitrator. Others use a three-arbitrator panel, with one arbitrator selected by each side and a neutral arbitrator involved in the decision.
Arbitrators evaluate many of the same issues a judge or jury would consider, including liability, medical records, testimony, credibility, damages, and policy limits.
Because arbitration can strongly depend on preparation and presentation, documentation matters. Medical records, imaging studies, wage records, photographs, witness statements, and clear testimony can affect the outcome.
How Your Credibility as a Person Affects Your Uninsured Motorist Claim
Credibility matters in a UM claim. Insurance adjusters and arbitrators look at whether your statements, medical records, testimony, and conduct are consistent.
You can protect your credibility by being honest with doctors, disclosing prior injuries, following treatment recommendations, avoiding exaggeration, and answering questions directly.
A pre-existing condition does not automatically defeat your claim. If the accident aggravated a prior injury, the key is to explain the timeline clearly and support it with medical records.
Trying to hide a prior injury is usually far more damaging than disclosing it honestly.
Your Insurance Policy Limits
Policy limits are often the hard ceiling on an uninsured motorist recovery.
Illinois requires minimum uninsured motorist bodily injury limits of $25,000 per person and $50,000 per accident. Higher limits may be available if you purchased them.
If your damages are worth more than your UM limits, the insurance company generally is not required to pay more than the available policy coverage. For example, if your claim is worth $500,000 but your UM limit is $100,000, the available UM recovery may be limited to $100,000.
For that reason, it is worth reviewing your auto policy before an accident happens. Ask your insurance agent about the cost of higher uninsured and underinsured motorist limits.
How Long Does it Take to Settle an Uninsured Motorist Claim?
The timeline depends on the facts.
Some UM claims resolve in months. Others take longer, especially when injuries are serious, treatment is ongoing, liability is disputed, policy limits are unclear, or arbitration becomes necessary.
Common stages include opening the claim, investigating coverage, obtaining medical records, documenting damages, negotiating with the insurer, and, if necessary, demanding arbitration under the policy.
A serious injury claim should usually not be settled before the medical picture is clear. Settling too early can leave future treatment, lost income, or permanent limitations out of the valuation.
Scott Blumenshine’s Experience With UM and UIM Claims
Attorney Scott Blumenshine has extensive experience handling uninsured and underinsured motorist claims in Illinois. He has written and taught on UM and UIM issues and has handled serious injury claims involving disputed coverage, arbitration, and policy-limit issues.
That experience matters because UM and UIM claims often involve both injury valuation and insurance contract issues.
Talk to a Chicago Uninsured Motorist Attorney
Every uninsured motorist claim should be evaluated based on the facts, the policy language, the available coverage, the medical evidence, and Illinois law.
If you were injured by an uninsured driver, a hit-and-run driver, or a driver without enough insurance, Blumenshine Law Group can review your case and explain your options.
Call or text (312) 766-1000 or email [email protected] for a free consultation.
Frequently Asked Questions About Uninsured Motorist Claims
What’s the difference between UIM and UM coverage?
UM coverage applies when the at-fault driver has no insurance. UIM coverage applies when the at-fault driver has insurance, but not enough to fully cover your damages.
How is an uninsured motorist claim different from a regular injury claim?
A regular injury claim is usually made against the at-fault driver’s insurance company. A UM claim is made under your own insurance policy because the at-fault driver has no insurance or cannot be identified.
What determines the value of an uninsured motorist claim?
The value depends on the severity of the injury, medical treatment, lost income, pain and suffering, permanent limitations, credibility, liability evidence, and available UM policy limits.
Can my own insurance company fight my UM claim?
Yes. Your insurer may dispute fault, causation, medical treatment, lost wages, permanency, or the value of your damages. That is why UM claims should be documented carefully.
Are uninsured motorist claims decided in court?
Many UM claims are decided through arbitration if they do not settle, but the exact process depends on the insurance policy.
Does UM coverage apply to hit-and-run accidents?
Often, yes, but hit-and-run claims can involve special policy requirements. Some policies require physical contact or independent evidence. The policy and facts should be reviewed carefully.
Should I accept the insurance company’s UM settlement offer?
Not until you understand the full value of your injuries, the available policy limits, liens, future treatment needs, and whether the offer accounts for your lost income and pain and suffering.
What does UM mean?
UM stands for uninsured motorist coverage. It is auto insurance coverage that may pay for bodily injuries caused by an at-fault driver who has no insurance or by a hit-and-run driver.