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Illinois Uninsured Motorist Claims: How Arbitration Works
Short answer: Illinois auto policies must include uninsured motorist coverage. Under 215 ILCS 5/143a, disputes with your insurer over whether the claim is covered or how much it is worth go to arbitration, either through the American Arbitration Association or a three-person panel. Bring medical bills, wage records and the police report, and share them early.
When an uninsured driver causes your crash in Illinois, the claim for your injuries usually runs through your own policy's uninsured motorist (UM) coverage. That makes your own insurer the party you negotiate with. If you and the insurer cannot agree, the case does not normally go in front of a jury. Illinois law sends it to arbitration.
The short video below explains the basics in about half a minute. It uses licensed stock footage of roads and paperwork, not footage of any real crash or hearing. The full guide follows.
Video transcript
Hit by an uninsured driver in Illinois? Your claim may go to arbitration. Illinois policies must include uninsured motorist coverage. Disputes over coverage or damages go to arbitration, not a jury. That means the American Arbitration Association, or a three-person panel: one arbitrator per side, plus a third they choose. Gather bills, wage records and the police report, and share them early. Check your policy's arbitration clause. Compare free quotes at autoinsurancebundle.pro.
UM coverage is required in Illinois
Under 215 ILCS 5/143a, auto liability policies issued in Illinois must include uninsured motorist coverage at no less than the limits in Section 7-203 of the Illinois Vehicle Code. The Illinois Department of Insurance shopping guide lists that minimum as $25,000 per person and $50,000 per accident for bodily injury.
If you carry UM limits above the minimum, 215 ILCS 5/143a-2 generally requires underinsured motorist (UIM) coverage to be included too, which helps when the other driver has insurance but not enough.
How UM arbitration works
The statute requires UM policies to include an arbitration provision. Disputes over whether the insured is legally entitled to recover damages and over the amount of damages are settled by arbitration.
| Feature | What 215 ILCS 5/143a provides |
|---|---|
| Who hears the case | The American Arbitration Association (AAA), or a panel as an alternative |
| How a panel is picked | Each side chooses one arbitrator, and those two choose a third |
| If a panel stalls | If arbitrators are not selected within 45 days of the request, either party may ask for AAA arbitration |
| Is the award final? | Binding on both sides up to $75,000 per person and $150,000 per crash, or the policy limits if lower |
| Records rules | Notice rules let medical bills, records and wage reports in without live testimony if shared at least 60 days before the hearing |
Above those binding amounts, either party can reject the award and take the case to court, subject to the policy terms. State rules vary, and other states handle UM disputes differently, so these rules apply to Illinois policies.
When is the other driver considered uninsured?
Sometimes it is not clear whether the other driver had insurance. Section 143a(6) helps: if that driver fails to file the required insurance forms with the Illinois Department of Transportation's Safety Responsibility Section within 120 days of the crash, there is a rebuttable presumption that the driver was uninsured. Your insurer can still try to prove otherwise.
Call (888) 217-5854 for free quotes and to review your UM and UIM limits.
Step-by-step: preparing for a UM arbitration
- Report the crash and the claim promptly to your own insurer and follow your policy's notice rules.
- Get the police report. It records the other driver and any insurance information exchanged.
- Gather medical bills and records from every provider, plus proof of payment.
- Collect wage records such as pay stubs or a letter from your employer showing missed work.
- Read the arbitration clause in your policy to see how a panel is chosen and any deadlines.
- Share documents early. Under the statute, records shared at least 60 days before the hearing can come in without the author testifying, unless the other side objects in time.
- Consider an attorney for larger injuries. Arbitration is less formal than court, but the insurer will have its own representative.
Why your UM limits matter
Arbitrators can award only up to your policy limits. If you carry the state minimum of $25,000 per person, that is the most you can recover from your UM coverage for one person's injuries, even if the costs are higher. The cost of higher UM and UIM limits varies by insurer and driver. Ask for quotes at several limits before you choose.
After the arbitration award
Once the arbitrators decide, the award sets what your insurer owes under the UM coverage, up to your policy limits. Read your policy's arbitration clause to see whether the award is binding and whether either side can challenge it. If you have questions about the award or about payment timing, ask the insurer in writing and keep copies of every response.
FAQ
Do I have to go to arbitration for an Illinois UM claim?
Disputes over coverage or the amount of damages must go to arbitration under the policy provision that 215 ILCS 5/143a requires. Many claims still settle with the adjuster before a hearing.
Who are the arbitrators?
Either the American Arbitration Association or a three-person panel, where each side picks one arbitrator and those two pick the third.
Is the arbitration decision final?
It is binding on both sides up to $75,000 per person and $150,000 per crash, or the policy limits if those are lower. Above that, either party may reject the award as the statute and policy allow.
What if I don't know whether the other driver was insured?
If the other driver fails to file the required forms with IDOT's Safety Responsibility Section within 120 days, Illinois law presumes the driver was uninsured, unless the insurer shows otherwise.
Does UM pay for damage to my car?
UM in Illinois is mainly bodily injury coverage. Damage to your car is usually handled through collision coverage, so check your policy for the details.
Questions about your coverage? Call a licensed agent at (888) 217-5854 to compare free quotes.
Important: This article is general information, not legal, tax, or insurance advice, and coverage rules vary by state, insurer, and policy. AutoInsuranceBundle.pro is a free, independent insurance comparison and referral service. We are not an insurance company, we do not issue policies, and we do not provide insurance advice. Calls to the number on this site are routed to licensed insurance agents or agencies in our partner network, who may receive compensation. Calling is completely voluntary and there is no obligation to buy. Rates, discounts, and availability vary by carrier, state, and individual eligibility; not all carriers, products, or discounts are available in all states. Calls may be recorded for quality and compliance purposes.
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