The value of your uninsured motorist claim is determined by the severity of your injury and your medical bills
The nature and extent of your injury are major factors in valuing your claim. You must objectively evaluate your injury claim, which starts with understanding the nature of your injury. A short-term minor injury typically has a modest settlement value, whereas a severe, permanent injury has a significantly higher value.
The primary considerations for an uninsured motorist injury payment – pain and suffering:
- Permanent versus temporary – a permanent injury can double or triple your claim value.
- Single body part versus multiple body parts – multiple injuries can significantly increase your injury claim value.
- Disabling versus annoying – an injury that disables or limits you increases the claim value.
- Painful versus annoying – provable pain increases the value of your claim.
- Disfiguring versus “invisible” – visible injuries such as scarring or burns increase case value.
Uninsured Drivers: Higher Risk and Legal Consequences
One unfortunate statistic is that drivers without insurance appear to be more accident-prone than those with insurance. Uninsured motorists are 72 percent more likely to be in an accident than insured ones.
Uninsured drivers are discovered primarily when they are stopped for a moving violation. If they do not have proof of insurance, they may be fined up to $1,000 and have their registration and driver’s license suspended.
Illinois is attempting to enforce the insurance requirement by sending approximately 300,000 random annual audit letters, which require individuals to provide proof of insurance. If they fail, their registration and driving privileges can be suspended.
Covered and Non-Covered Scenarios in Uninsured Motorist Accidents
Not all accidents involving uninsured motorists are covered by insurance. If another vehicle cuts in front of you, causing you to run off the road and have an accident, such as hitting a tree, rolling your car, or landing in a ditch, but the other car has no physical contact with your vehicle, there is no coverage.
You are covered under the following circumstances.
- A hit-and-run driver hits you.
- Another driver who had physical contact with your car was at fault for the accident.
- You were hit while driving a car you don’t own or were traveling as a passenger in another vehicle, and the driver at fault for the accident has no insurance.
- The accident is the vehicle driver’s fault if you are hit while crossing the street as a pedestrian.
UM Claim Example
For instance, let’s consider a back injury. A back sprain is less severe than a herniated disc. It is not as painful, debilitating, or costly to treat as a herniated disc, and it usually heals within a few months. A typical herniated disc can be extremely painful, causing shooting pain down the legs, incapacitating the individual, and taking years to heal, if at all.
Treating a common back sprain requires simple medical attention, including a visit to the emergency room, follow-up with an internist, and physical therapy or chiropractic care. Treating a herniated disc, however, necessitates a visit to a specialist such as an orthopedic surgeon or neurosurgeon, an MRI or CT scan, and extensive therapy, injections, and possibly surgery.
- Your medical expenses (and income loss)
Medical Bills are the Other Big Factor in Evaluating Your Injury Claim
Insurance companies know that an arbitrator will typically compensate for economic damages. Therefore, the insurance adjuster is inclined to include your medical expenses in the settlement offer.
Once upon a time, the concept existed that a case should settle for three times the amount of your medical bills. This is no longer true. However, it is still true that insurers will use your medical bills as a primary basis for their offer.
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.
Below is a sample paragraph you could add to the existing text that naturally incorporates the phrase “UIM claim settlement” while maintaining context and flow:
UIM Claim Settlements
In some situations, an uninsured motorist (UM) claim can also involve an underinsured motorist (UIM) claim settlement if the at-fault driver’s policy does not fully cover your losses. You may turn to your UIM coverage for additional compensation for expenses such as ongoing medical treatment, lost wages, and pain and suffering.
It’s essential to understand the terms of your policy and to gather comprehensive evidence of your damages, like medical records, pay stubs, and vehicle repair invoices, to build a strong demand. Having a clear picture of the at-fault driver’s limitations and your coverage, you can negotiate more effectively and secure a fair UIM settlement that reflects your actual needs.
Video: How to Collect an Underinsured Motorist Claim
Where Will Your Case Be Decided?
In Illinois, uninsured driver claims are heard in arbitration if not settled by negotiation. The hearing can be conducted before a three-arbitrator panel or a single arbitrator. You need to know who is hearing your case. Certain arbitrators tend to be more open-minded about the value of injury cases and awarding damages. Some arbitrators are more conservative or less inclined to view injury claims broadly. You would do well to know.
Who are You as a Person?
Make sure to present yourself as credible and honest if you’ve been injured, as it can influence the outcome of your compensation claim. Avoid being evasive, shifty, careless, or dishonest, as this could result in receiving an inadequate award. Be truthful, dress appropriately, and maintain eye contact with the arbitrator.
If you have a pre-existing back injury that the incident has worsened, please inform the doctors and the insurance company. If your previous back injury has healed, disclose that information, as it can enhance your credibility. Ultimately, appearing trustworthy and amiable can improve your chances of receiving fair compensation for your uninsured motorist claim.
Your Insurance Policy Limits
Please remember the following: If your claim is worth $1,000,000 but you only have $100,000 in uninsured motorist coverage, the maximum you can recover is $100,000. In our 35 years of handling uninsured driver claims, we have seen too many clients with insufficient uninsured motorist coverage.
While purchasing a policy with low limits of $20,000 to $100,000 may initially save you money, it could ultimately harm you if you require medical treatment. For example, an overnight hospital stay can cost $20,000. It’s important to note that increasing coverage limits may not cost as much as you think. Many uninsured motorist attorneys and insurance professionals recommend that people have at least $500,000 in uninsured and underinsured motorist coverage.
Please consult your agent about the costs of increased coverage. It’s important to note that increased coverage is not significantly more expensive. For example, if a policy with coverage limits of $100,000 costs $1,000 annually, a policy with coverage limits of $250,000 might only cost an additional $100. This extra cost for increased coverage provides valuable protection in the event of a severe injury involving an uninsured or underinsured motorist.
Underinsured Motorist Coverage Settlement Claim
When a negligent driver causes an accident but lacks adequate insurance, underinsured motorist coverage can help bridge the gap between their liability limits and the compensation they are entitled to. Settling an underinsured motorist claim requires understanding complex insurance regulations and legal nuances.
Our Chicago injury attorneys have decades of experience negotiating maximized settlements from underinsured motorist policies after car accidents. We thoroughly investigate crashes, prove negligence and damages, and leverage every available coverage to get clients fair compensation.
We are assertive yet strategic negotiators, ready to pursue underinsured motorist pain and suffering in court when necessary. Our firm has recovered millions for injury victims by tapping into underinsured motorist coverage provided by their policies. Trust us to fight for your full entitlements.
How Long Does it Take to Settle an Uninsured Motorist Claim?
The duration of settling an uninsured motorist claim can vary greatly depending on several factors. Here’s what you need to know about the process and what can affect the timeline:
- Initial Claim and Investigation: Once you file an uninsured motorist claim, the insurance company will start an investigation. This involves reviewing the accident report, medical records, and other relevant documents. The complexity of your case can influence how long this stage takes.
- Negotiation Process: The negotiation process begins once your claim is approved, following the investigation. This involves discussions between you (or your attorney) and the insurance company to reach a settlement amount. The clarity of fault can influence the length of negotiations in the accident and the compensation you seek.
- Settlement Offer and Acceptance: If negotiations are successful, the insurance company will make a settlement offer. You have the right to accept this offer, reject it, or make a counteroffer. The duration of this stage depends on the number of rounds of negotiation required to reach an agreement satisfactory to both parties.
- Legal Factors: If the settlement offered is unsatisfactory, you may decide to take legal action, which can significantly extend the timeline. The court schedule, the complexity of the legal arguments, and the availability of all parties involved can contribute to delays.
- Extenuating Circumstances: Each case is unique, and specific circumstances can either accelerate or delay the process. These factors can include the severity of the injuries, the level of cooperation among all parties involved, and the specific policies of the insurance company handling the claim.
What to Expect When Settling an Uninsured Motorist Claim
It’s important to remember that some claims can be resolved within weeks or months, but others, particularly those involving serious injuries or complicated legal matters, may take years. It’s crucial to maintain realistic expectations and stay in close contact with your attorney, who can give you advice tailored to the details of your case.
Patience and Persistence: Settling an uninsured motorist claim requires both. Working with a knowledgeable attorney can help streamline the process and ensure you have the best chance of receiving fair compensation promptly.
If you need assistance or have questions about your uninsured motorist claim, the Blumenshine Law Group is here to provide expert guidance at every step. Contact us for a comprehensive review of your situation and personalized advice on moving forward with your claim.
Do Insurance Companies Go After Uninsured Drivers?
It is not uncommon for an insurance company to pursue an uninsured driver after an accident. They typically do this by contacting the driver’s insurance provider and requesting that they file a claim on their behalf.
Uninsured drivers account for approximately 30 percent of all auto accidents. Insurance companies employ various methods to identify drivers without insurance. These methods may include checking driver’s license records, running car registrations through databases, contacting local police departments, or directly asking customers.
If caught driving without insurance, individuals could face fines of up to $1,000 and potential jail time.
Scott Blumenshine’s Experience and Contributions to UM/UIM Law
Scott Blumenshine is a highly regarded attorney specializing in Uninsured/Underinsured Motorist (UM/UIM) cases. He is well-known for his contributions to Illinois’s UM/UIM case law and for his active advocacy for legislative measures to improve client protection.
Blumenshine is committed to legal education, regularly writing articles and providing Continuing Legal Education (CLE) resources. He is also a respected speaker at CLE seminars, where he shares practical advice on UM/UIM cases. With a track record of numerous successful settlements and awards, he is recognized as a determined advocate in the legal field.
Consult an Attorney
Every case is unique, and your case must be evaluated independently based on the facts of your case and applicable law. I hope the article has helpful information. If you have questions and are in Illinois, I would be happy to take the time to speak with you.
If your insurer is not paying you what you think you deserve, let us review your case. Call or text us at (312) 766-1000 or email us at [email protected], and a Chicago uninsured motorist attorney will be happy to answer your questions. This is a free, no-obligation consultation.
FAQs
How long does it take to settle an underinsured motorist claim?
The time it takes to settle a UM claim can vary greatly. Some claims may be resolved within weeks or months, while others may take longer, especially if they involve severe injuries or complex legal issues.
How does a UIM demand work in uninsured motorist claims?
A UIM demand in the context of an uninsured motorist claim involves formally requesting that your insurance company provide compensation under your UIM coverage. This is part of the negotiation process to settle claims for fair compensation based on your policy limits and the extent of your injuries and damages.
Can you explain the difference between UIM and UM coverage?
UIM (Underinsured Motorist) coverage applies when the at-fault driver has insurance, but it’s insufficient to cover all your damages. UM (Uninsured Motorist) coverage protects you when the at-fault driver is uninsured. Both coverages are crucial for comprehensive protection on the road.
What constitutes a UM claim in the insurance process?
A UM claim, or Uninsured Motorist claim, is filed when you seek compensation from your insurance policy under the UM coverage for accidents in which the other party is at fault and does not have insurance. It’s a claim for reimbursement from your insurer for injuries and damages for which the other driver is legally liable.
What does UM mean?
In legal terminology, UM stands for Uninsured Motorist coverage, a part of auto insurance designed to provide payment when the party at fault in the accident does not have insurance to cover the damages.