Should I get uninsured or underinsured motorist coverage in Illinois?

Before getting into the details of this question, I want to give you an unequivocal answer: YES. Now let me explain why you need to buy underinsured (UIM) or uninsured (UM) coverage in Illinois.

What is uninsured or underinsured motorist coverage?

Uninsured motorist (UM) coverage protects you when you are involved in a crash with an irresponsible driver who carries no liability insurance coverage. Usually, the amount of uninsured motorist coverage you should carry is equal to the amount of bodily injury liability coverage that you have on your policy.

Similarly, underinsured motorist (UIM) coverage protects you when the bad driver has some insurance coverage, but it is nowhere near enough to cover the damages resulting from your injuries.

So, how much UM/UIM coverage should I have?

At Shannon Law Group, we recommend carrying a minimum of $500,000 in UM/UIM coverage. If you talk to your insurance provider, you may find that the difference in premium payments for higher coverage amounts can be quite small.

The Illinois government recognizes the huge benefit that uninsured/underinsured motorist coverage provides to you. Illinois law requires insurance companies to offer you uninsured motorist coverage in the same amount as your bodily injury liability coverage.

In order to reject UM coverage, you must sign a certification indicating that you have been informed as to what UM coverage is, you have been offered it as a coverage option, and you have declined the coverage.

What happens if I don’t have UM/UIM coverage?

Michael, one of our clients, had an experience that illustrates the importance of having UM/UIM coverage. Michael had recently purchased a motorcycle. His insurance company offered him uninsured motorist coverage.

To save some money, Michael declined the UM/UIM coverage. Within a week of purchasing his motorcycle, a reckless driver made an illegal left-hand turn right in front of Michael’s motorcycle. To avoid a deadly collision, Michael brought his bike down to the ground, and it slid into the side of the turning vehicle.

He suffered a bad leg and ankle break. He had multiple surgeries and incurred tens of thousands of dollars in medical bills. His injuries were going to affect him for the rest of his life.

To make matters worse, the reckless driver was found to be under the influence of cannabis and other drugs. Unsurprisingly, that driver was uninsured. He also had no meaningful assets to recuperate for our client.

Typically, when we learn that a bad driver carries no insurance, we can turn to our client’s own uninsured motorist coverage to recover damages. In Michael’s case, we filed a lawsuit against the bad driver and presented it to the judge.

The judge entered a judgment against the other driver for several hundred thousand dollars. However, without any assets or UM insurance coverage to pursue, Michael had no real options.

You’re playing by someone else’s rules if you don’t buy UM/UIM coverage

Michael’s story should be a cautionary tale. If you don’t carry UM/UIM coverage, you are relying on other people to play by the rules and maintain significant insurance coverage.

As we have seen far too often, there are many people sharing the road with us that do not play by those rules. Uninsured and underinsured motorist coverage provides the necessary protection from these drivers.