Court: Illinois Teen Eligible for UIM Coverage Under Dad’s Business Auto Policy

A teen injured in a car wreck is entitled to underinsured motorist coverage (UIM) under her father’s business auto policy even though the vehicle she was riding in was not a listed vehicle on the policy, according to the U.S. Court of Appeals for the Northern District of Illinois, Western Division.

Nicole Haight was injured while a passenger in a car driven by Brian Day that was involved in a single-car accident. Ejected from the vehicle, she suffered multiple pelvic fractures, a fractured lower vertebra, minor head injuries and contusions.

Her medical bills exceeded the $50,000 in bodily injury coverage that Day had through his carrier, Country Insurance. As a result, Haight sought UIM coverage under her father’s business auto policy issued by Grinnell Mutual Reinsurance Co., which included UIM coverage for the named insured, her father, and any family members.

Grinnell denied Haight’s claim, contending that the injured teen must occupy a “covered auto” in order to receive UIM coverage.

The appeals court disagreed, finding that the policy provided UIM coverage to the named insured and family members regardless of whether they were occupying a vehicle listed on the policy during the accident.

The case is: Grinnell Mutual Reinsurance Co. v. Nicole A. Haight, No. 10 CV 50042.