Your options if the at-fault driver’s insurance doesn’t cover your injuries in Chicago, IL, include relying on your uninsured/underinsured motorist (UM/UIM) policy, suing the driver directly, or covering your medical bills with your health insurance. An attorney can examine your case, discuss available options for compensation, and compile strong evidence to prove the full scope of your damages. Working with an attorney protects you from spending your money to pay for expenses arising from another party’s negligence, even when insurance coverage is limited.
Lloyd Miller Law Group can help you explore all available options if you were injured in an Illinois car accident caused by an underinsured driver. Call us today at (773) 838-8100 to discuss your legal situation with one of our experienced car accident lawyers. Consultations are free.
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What Happens When the At-Fault Driver’s Insurance Limits Are Too Low?
When the liable driver’s insurance limits are too low, the insurance company pays up to the full policy limit. The company is not responsible for the remaining balance if your damages surpass the policy limit. The at-fault driver’s limit is fixed and cannot increase even if you sustain permanent injuries, such as spinal cord damage.
The available amount may be insufficient to cover all your medical bills. Ambulance transportation, emergency room services, and hospital stay can easily exceed available coverage. The uncovered medical bills can subject you to serious financial stress.
Your negotiation position with the insurer may weaken when the available coverage is too low. That is why the right attorney makes all the difference when dealing with an underinsured at-fault driver. Your attorney will present irrefutable evidence to show that your damages exceed the policy limit.
The insurance company may rush to give you a settlement offer when it discovers the available coverage is not enough to cover the full scope of your losses. It may even try to convince you to accept the offer because it includes the full limits. Taking the offer will, however, require you to sign a release clause that protects the at-fault driver and the insurer from future claims on the same matter.
Options for Recovering Compensation Beyond the At-Fault Driver’s Insurance
You are not limited to pursuing compensation from the at-fault driver’s insurance, especially when limits are too low. You can still explore other options beyond the at-fault driver’s policy. These options include:
Tapping into Your Own Underinsured Motorist Coverage
Up to 15.2% of drivers in Illinois were uninsured in 2023. The percentage of drivers carrying policies with too low limits was most likely larger. Fortunately, the state requires licensed drivers to include uninsured/underinsured motorist (UM/UIM) coverage in their regular auto policies. UM/UIM protects injured drivers in situations where the at-fault driver lacks insurance or available coverage is too low.
You can use your UIM coverage to cover the difference between your total damages and the amount paid by the at-fault driver’s insurance policy. For instance, let’s assume your total damages are $100,000 and the liable driver’s policy pays $25,000. If your auto coverage includes UIM, you may use it to cover the remaining $75,000. You still need to negotiate to recover the highest possible settlement from your insurer.
Suing the Driver Directly
Another option for recovering the difference between your total damages and the amount paid by the at-fault driver’s insurer is to sue the driver directly. If successful, you can recover your compensation from the driver’s personal assets.
The court may allow you to seize money from the liable driver’s wages or assets over time. Recovery from a driver’s personal assets, however, is generally hard because many underinsured drivers do not have substantial assets. Some may even have initiated bankruptcy proceedings before the accident.
A car accident lawyer can investigate if the liable driver is employed or earning revenue from businesses or property. The lawyer can also determine if the driver has additional umbrella insurance policies.
Using your Medical Payments Coverage (MedPay) or Health Insurance
Drivers in Illinois can add MedPay to their auto insurance policies. This add-on is, however, optional. So, if you have it as part of your policy, you can use it to cover medical expenses that exceed the at-fault driver’s coverage. Alternatively, you may use your health insurance to pay immediate medical expenses before reaching a settlement agreement with the liable driver’s insurer or pursuing other options for compensation.
Suing Other Liable Parties
Other parties or entities may have contributed to the accident that caused your injuries, even if they were not inside the involved vehicles or at the accident scene. An employer may bear some liability if the at-fault driver was driving a company vehicle or running errands for the employer.
Government agencies responsible for road maintenance may be liable for hazardous road conditions, including improper or missing signs and traffic lights, insufficient maintenance, and negligent design. Negligent construction companies, auto repair shops, and manufacturers of defective vehicle parts can also be liable.
How an Attorney Can Help When Insurance Does Not Cover All Injuries
An attorney helps you recover the highest possible compensation even when insurance does not fully cover all your injuries. The attorney asks the insurer to confirm available coverage limits and secondary policies in writing. Doing that enables your attorney to develop a negotiation strategy tailored towards recovering every available dollar. The decision to settle the case is entirely on you, even after a successful negotiation. In other words, the attorney cannot settle your case without your consent.
The negligent driver is often the primary liable party in most car accidents. Some crashes may, however, involve multiple at-fault parties. Your attorney will look at the facts and circumstances of your accident to see if other parties contributed to the crash and, if so, hold them financially accountable.
Your attorney also helps you navigate the stringent rules and procedures of recovering compensation from your own insurance company under the underinsured motorist coverage. The attorney protects your rights at every step and ensures the financial recovery reflects the actual value of your claim.
Lloyd Miller Law Group can help you investigate all possible options for financial recovery if the at-fault driver’s insurance does not cover all your damages. Our team will protect your rights and aggressively push for full compensation. Contact us today to begin your journey to financial recovery.
FAQs
What if the at-fault driver’s insurance policy limits are lower than my medical bills?
If the at-fault driver’s insurance policy limits are lower than your medical bills, you can cover the remaining balance using your MedPay, health insurance, underinsured motorist coverage, or the driver’s personal assets through a personal injury lawsuit against the driver. Pursuing third parties who may have contributed to the crash can also help you pay the remaining balance.
Can I use my own insurance if the other driver’s coverage is not enough?
You can use your insurance if the other driver’s coverage is insufficient, as long as your auto coverage includes underinsured motorist coverage. This add-on policy will pay the difference between your damages and the other driver’s policy limit. You will have to file a claim against your own insurer for the UIM coverage to pay your damages. You will also have to negotiate with your insurer to maximize your settlement. Otherwise, your own insurer may undervalue your claim.
When should I contact a car accident attorney about insufficient insurance coverage?
Involve a car accident attorney as soon as possible if you notice your total damages are more than the liable driver’s policy limits, or soon after discovering insufficient insurance coverage. Early legal intervention is instrumental in gathering strong evidence, avoiding costly mistakes, and exploring other options for financial recovery. You can count on your attorney to provide aggressive legal representation whether your personal injury case goes to trial or settles through a negotiation process.
