A previous post on this blog touched on underinsured and uninsured motorists coverage, which are both offered in Illinois automobile insurance policies. Although this blog has discussed these types of coverage in detail previously, a refresher may be helpful.
All insurance companies who want to provide automobile policies to Illinois drivers are required by law to offer uninsured and underinsured motorists benefits. A customer is free to decline these coverages via a signed form submitted to the person’s insurance company.
Uninsured motorists coverage means exactly what the word implies; it is coverage purchased from one’s own insurance company and will kick in to pay if the policyholder gets injured in a car accident caused by someone who does not have automobile liability insurance at all.
On the other hand, if the other driver has some automobile liability coverage, but not enough to fully compensate the victim for his or her injuries, then the victim can make a claim against the underinsured motorists coverage of his or her own policy. The coverage should pay for those losses and damages that exceed the liability limits of the other driver’s policy.
Given that many people on the Illinois roads only buy the minimum liability coverage of $40,000 for each accident, it is easy to understand why many people think underinsured motorists coverage is a good idea. And although it is illegal to drive without insurance, there are many uninsured drivers on the Illinois roads.
In any event, people in Illinois who have purchased these types of coverage should be aware they serve as another possible source of recovery in the event they get seriously injured in a car accident.