What Happens If the at-Fault Party Has No Insurance

At Rosenfeld Injury Lawyers, our experienced Chicago car accident lawyers have helped thousands of clients navigate complicated cases, especially when the at-fault driver has no car insurance.

With over $450 million recovered for accident victims, we understand how overwhelming it can be to deal with the aftermath of a crash, particularly when the at-fault party doesn’t have car insurance.

This article breaks down what to do, how uninsured motorist coverage works, and how we can help protect drivers’ rights and financial future

What is Uninsured Motorist (UM) Coverage?

Uninsured motorist (UM) coverage is required by law in Illinois and protects you if you’re injured in a car accident caused by a driver who doesn’t have adequate insurance. Under 625 ILCS 5/7-601(a), every motorist in Illinois is required to carry liability insurance. Yet, thousands drive without it every day.

UM coverage pays for damages the at-fault party would have been responsible for if they had insurance. It can provide compensation for:

• Bodily injuries, such as fractures, head trauma, or long-term pain
• Emergency and ongoing medical treatment
• Lost wages during recovery
• Pain and suffering
• Property damage, if not covered under collision coverage

In Illinois, drivers are required to carry a minimum of $25,000 per person and $50,000 per accident in UM insurance coverage for bodily injuries. You can elect to increase those limits, which is especially important if you’re concerned about serious injuries or higher-value claims.

Your UM policy typically covers:

• You, the policyholder
• Relatives living in your home
• Any passengers in your car at the time of a motor vehicle collision

What to Do After an Accident with an Uninsured Driver in Chicago

Being involved in an accident with an uninsured or underinsured driver can be stressful and confusing. Here’s what you should:

Prioritize Safety and Seek Medical Attention

Check for injuries and call 911. Even if you feel okay, get checked out—some bodily injuries may not appear immediately.

Call the Police and Report the Accident

You must report the accident to law enforcement. Under 625 ILCS 5/11-407, drivers involved in a crash with injury, death, or over $1,500 in property damage must notify the police.

A police report will document the crash and confirm that the other driver lacked sufficient insurance coverage, which will be crucial when filing your UM claim.

Gather Information

Even if the at-fault driver has no insurance, collect their name, contact details, and driver’s license information. If you can, take photos of the accident scene, damage, and license plate numbers.

Notify Your Own Insurance Company

Tell your car insurance company that an uninsured or underinsured driver hit you. This begins the process of filing a UM claim under your policy.

Do Not Admit Fault or Discuss Settlement

Avoid discussing fault or compensation with the uninsured driver. Anything you say can later be used against you.

Contact a Chicago Uninsured Motorist Accident Lawyer

An experienced uninsured motorist lawyer in Chicago can help you gather evidence, protect your legal rights, and deal with insurance companies that may try to delay or underpay your claim.

Filing a UM Claim with Your Car Insurance Company

When you file an uninsured motorist claim, you’re technically claiming your own insurance coverage, not that of the at-fault driver. Although your insurer is supposed to act in good faith, it’s important to remember that they may treat your UM claim like a liability claim, investigating and possibly disputing it.

After reporting the accident, an adjuster will be assigned to review your case. They may request recorded statements and documentation, and may even send you to an independent medical exam.

Once you’ve submitted everything—medical bills, lost wages, and the police report—your insurer has a legal obligation under 215 ILCS 5/154.6 to process the claim in a reasonable and timely manner.

However, delays are common. If you feel the insurance company is stalling, misrepresenting coverage, or undervaluing your losses, your next step may be arbitration. Most Illinois auto insurance policies require binding arbitration if there’s a dispute over the value of the claim.

This isn’t a courtroom but a formal hearing in which both sides present evidence, and a neutral panel decides the outcome. Having legal representation at this stage can make a major difference.

What if Your Damages Exceed Your UM Coverage Limits?

When your injuries or losses are greater than your uninsured motorist coverage limits, you’re in a tough position—but not a hopeless one.

Suing the uninsured driver directly is an option, but most drivers without insurance have few or no assets to collect from. Even if you win in court and your case leads to the other driver’s license suspension, actually getting paid can be difficult unless the driver has significant income or property.

If you have underinsured motorist coverage (UIM) on your auto insurance policy, it can help. This applies when the at-fault driver has some coverage, but not enough to pay for all of your damages.

For instance, if your total losses are $75,000 and the at-fault driver’s policy only covers $25,000, your UIM coverage could cover the remaining $50,000, up to your policy limits.

Another overlooked option involves third-party liability. If the uninsured driver was on the job, their employer may be held responsible. Or, if a vehicle defect contributed to the crash, you may have a separate personal injury lawsuit against the manufacturer or service provider.

The Role of a Chicago Car Accident Lawyer

Dealing with a UM claim is not always straightforward. Even though it’s your own policy, your insurance company may push back on the amount of damages, the cause of the crash, or even deny coverage outright.

An experienced personal injury attorney helps by:

• Reviewing your insurance policy to confirm UM and UIM coverage;
• Helping you collect all necessary documentation (e.g., medical treatment records, medical expenses, lost wages);
• Handling all communications with your insurance carrier;
• Representing you in arbitration or, if necessary, litigation;
• Exploring other legal options if additional parties may share liability.

Most importantly, a lawyer levels the playing field. Insurance companies have teams of lawyers—so should you.

FAQs About Uninsured Motorist Claims in Illinois

Will My Auto Insurance Rates Go Up if I File a UM Claim?

Not usually. Since you’re not at fault, your rates typically won’t increase. However, always check with your insurance provider for policy-specific terms.

How Long Do I Have to File a UM Claim?

In Illinois, you generally have two years from the date of the car crash to take legal action, be it an uninsured motorist (UM) claim or a civil suit, under the state’s personal injury statute of limitations (735 ILCS 5/13-202).

However, many auto insurance policies contain contractual notice provisions or contractual limitations periods that may be shorter, sometimes as little as one year.

What if I Don’t Have UM Coverage?

You may be limited to suing the uninsured driver, which is rarely successful. Unfortunately, you must have uninsured motorist coverage in place at the time of the motor vehicle collision to file a UM claim.

What Is Arbitration, and How Does It Work in a UM Case?

Under most insurance policies, disputed UM claims go to binding arbitration, a private legal process in which a panel decides the outcome. This is common in Illinois and often takes the place of litigation.

How Much Does It Cost to Hire a Lawyer for a UM Claim?

Our legal team works on a contingency fee basis—you pay nothing unless we recover compensation for you and help you secure a fair settlement. Every free consultation includes a full case review and insurance policy analysis.

Can I File a UM Claim if I am a Passenger?

Yes. Passengers injured in a crash caused by an uninsured motorist can file a claim under the driver’s UM policy, or their own if available.

Book a Free Case Evaluation

If you’ve been in a car accident with an uninsured motorist, you still have options to seek compensation. Whether you’re filing a claim with your own insurance company or considering a lawsuit, we’re here to help.

At Rosenfeld Injury Law, our personal injury lawyers understand Illinois insurance laws, know how to challenge bad-faith practices, and fight to get you what you deserve.

Call (888) 424-5757 or fill out our online form to schedule a free consultation and get answers from a top Chicago car accident lawyer.

All content undergoes thorough legal review by experienced attorneys, including Jonathan Rosenfeld. With 25 years of experience in personal injury law and over 100 years of combined legal expertise within our team, we ensure that every article is legally accurate, compliant, and reflects current legal standards.