What happens when the driver who hits you cannot cover your injuries?
You’re stopped at a red light when another driver hits your car. You exchange information, report the crash, and begin dealing with medical appointments. Then you learn the other driver has no insurance—or not enough to cover the injuries they caused.
That is where UM/UIM insurance may help. Short for uninsured motorist and underinsured motorist coverage, it can provide protection when an at-fault driver cannot meet their financial responsibility for your injuries.
For drivers in Springfield and across Central Illinois, it is a part of an auto policy worth understanding before an accident.
What is UM/UIM insurance?
UM and UIM address two different situations:
| Coverage | What it generally addresses |
|---|
| Uninsured motorist coverage — UM | Injuries caused by an at-fault driver who has no applicable liability insurance |
| Underinsured motorist coverage — UIM | Injuries caused by an at-fault driver whose liability limits are lower than your applicable UIM limits, subject to Illinois law and policy terms |
In Illinois, these terms generally refer to bodily injury coverage. They should not be confused with coverage for repairing your car.
Depending on the circumstances and policy, UM/UIM may help with covered damages such as medical expenses, lost income, and pain and suffering.
How uninsured motorist coverage works
Suppose another driver causes a crash and has no auto liability insurance. Without an applicable source of recovery, you could face the challenge of pursuing that driver personally for your injuries.
Uninsured motorist coverage provides a way to make a qualifying injury claim under your own policy.
Coverage may also apply to certain hit-and-run situations, but those claims can have specific requirements. Report the accident promptly and ask your insurer what documentation and deadlines apply.
Having UM coverage does not mean every accident qualifies. Fault, injuries, policy definitions, exclusions, and other conditions still matter.
How underinsured motorist coverage works
Underinsured motorist coverage applies differently. The other driver has insurance, but the available limits may be too low.
In Illinois, UIM generally involves comparing the at-fault driver’s bodily injury liability limits with your applicable UIM limits. It is not simply additional money that automatically stacks on top of the other driver’s policy.
For example, assume:
- The at-fault driver has a $25,000 bodily injury limit available for your claim.
- Your applicable UIM limit is $100,000.
- Your covered damages are high enough to support recovery.
- All policy and legal requirements are satisfied.
In a simplified example, your UIM coverage could provide up to $75,000 beyond the other driver’s $25,000 payment, rather than an additional $100,000.
Actual payment depends on the claim, offsets, available limits, and policy terms. This example is not a guarantee of payment.
Does Illinois require UM/UIM coverage?
Illinois auto policies are subject to state requirements for uninsured motorist bodily injury coverage. Underinsured motorist requirements are connected to the uninsured motorist limits selected.
Because coverage-selection rules and rejection requirements can affect your policy, ask your insurance advisor to explain:
- Your current UM and UIM limits.
- How those limits compare with your bodily injury liability coverage.
- Whether any lower limits were selected.
- How the limits apply to one injured person versus everyone injured in an accident.
The state minimum is a legal starting point. It does not tell you whether your limits would be enough for a serious injury.
Does UM/UIM insurance pay to repair your car?
Bodily injury UM/UIM coverage generally does not pay for vehicle repairs.
Damage to your vehicle may fall under collision coverage or a separate uninsured motorist property damage provision, depending on your policy and the circumstances.
That distinction matters. You can have protection for injuries caused by an uninsured driver and still have separate questions about deductibles, rental transportation, and repairing your car.
Ask your advisor to explain both sides of the claim.
Why health insurance does not answer every question
Health insurance may help pay eligible medical bills after a crash. But an injury can create financial consequences beyond those bills.
You might miss work, need ongoing assistance, or experience other damages that health insurance does not address. UM/UIM can serve a different purpose by responding to qualifying damages you are legally entitled to recover from the at-fault driver.
How coverage coordinates depends on the policies and circumstances. Do not assume having health insurance makes UM/UIM unnecessary.
Who can be covered?
Coverage may extend beyond the person driving the insured vehicle. Depending on the policy, insured household members and passengers may have protection in qualifying circumstances.
Some policies can also apply when an insured person is injured as a pedestrian or while riding in another vehicle.
However, household definitions, vehicle ownership, exclusions, and other available insurance can affect the answer. Ask specifically about family members, young drivers, and vehicles your household owns.
What should Central Illinois drivers review?
A serious accident can happen on a neighborhood street just as easily as during a highway commute. When reviewing your policy, focus on how coverage would work for your household.
Your limits
Find the UM/UIM section on your declarations page. If the limits are shown as two numbers, ask what each represents and how a claim involving several injured people would be handled.
Everyone in your household
Tell your advisor about household drivers and vehicles. Changes such as a child getting a license, moving home, or buying a separate vehicle can raise coverage questions.
Vehicle damage coverage
Confirm whether you have collision coverage and any uninsured motorist property damage protection. Ask about applicable deductibles.
Reporting and settlement requirements
After an accident, notify your insurer promptly. Before accepting a settlement or signing a release from the other driver’s insurer, confirm whether your own insurer’s consent is required to preserve a UIM claim.
Umbrella coverage
Do not assume a personal umbrella policy increases your UM/UIM limits. Some policies offer this protection, while others do not. Review it separately.
Common questions about UM/UIM insurance
What is the difference between UM and UIM?
UM generally addresses injuries caused by an uninsured at-fault driver. UIM addresses qualifying injuries when the at-fault driver has insurance but its limits are lower than your applicable UIM limits.
Does UM/UIM cover a hit-and-run?
Certain hit-and-run injury claims may qualify under uninsured motorist coverage. Policy requirements and Illinois law affect eligibility, so report the accident promptly.
Will my policy pay the full UM/UIM limit?
Not automatically. Limits are the maximum potentially available under the policy, not a promised payment. Fault, covered damages, offsets, and policy conditions affect the amount.
Review your auto coverage with TROXELL
Knowing you have auto insurance is different from knowing how it would respond if another driver has too little coverage.
TROXELL can help you review your UM/UIM limits, understand how injury and vehicle damage coverage differ, and consider whether your policy fits your household.