Illinois law governs auto insurance claims through a combination of state statutes, administrative regulations, and case law precedents. Awareness of these auto insurance regulations in Illinois is helpful for anyone involved in a car accident, as they dictate the responsibilities of drivers, insurance companies, and claimants.
An experienced car crash lawyer with deep knowledge of Illinois car insurance claim laws can help you recover maximum compensation from the insurance company.
Illinois Auto Insurance Requirements
Illinois follows a traditional fault-based insurance system, meaning the driver responsible for causing an accident is liable for damages. The state mandates minimum liability insurance coverage under 625 ILCS 5/7-601:
- Bodily Injury Liability Coverage: $25,000 per person / $50,000 per accident
- Property Damage Liability: $20,000 per accident
- Uninsured Motorist Coverage: $25,000 per person / $50,000 per accident
These minimum liability limits ensure that at-fault drivers can compensate victims for motorist bodily injury and property damage. However, additional optional coverages, such as underinsured motorist coverage, collision, and comprehensive coverage, can provide further protection. You should compare the insurance costs versus benefits to make an informed decision.
Illinois Auto Insurance Claim Process
After an accident, claimants have several options for seeking compensation:
Filing a Claim with Your Own Insurance Provider (First-Party Claim)
A first-party claim is made against your insurer under policies like uninsured motorist coverage, medical payments coverage (MedPay), or collision coverage. Illinois does not require personal injury protection (PIP), but MedPay can help cover medical expenses regardless of fault.
Filing a Claim Against the At-Fault Driver’s Insurance (Third-Party Claim)
Since Illinois follows a fault-based system, the injured party may file a claim against the at-fault driver’s insurer for damages, including medical bills, lost wages, and pain and suffering.
Filing a Lawsuit
If an insurance settlement is inadequate, the injured party may file a personal injury lawsuit against the at-fault driver. Illinois’ statute of limitations for personal injury claims is two years from the accident date (735 ILCS 5/13-202), while property damage claims must be filed within five years (735 ILCS 5/13-205).
Determining Fault in an Illinois Auto Insurance Claim
Illinois uses a modified comparative negligence system (735 ILCS 5/2-1116), meaning a claimant can recover damages only if they are less than 50% at fault for the accident. However, their compensation will be reduced by their percentage of fault.
For example, if a driver is found 30% at fault for an accident and incurs $100,000 in damages, they would receive $70,000 (a 30% reduction).
Bad Faith Insurance Practices in Illinois
Illinois law requires insurers to handle claims fairly and in good faith. Under 215 ILCS 5/154.6, bad faith insurance practices may include:
- Unreasonable denial of claims
- Failure to conduct a prompt and thorough investigation
- Deliberate delays in processing claims
- Refusing to negotiate a fair settlement
If an insurance agent engages in bad faith, policyholders can file a lawsuit seeking damages under 215 ILCS 5/155, which allows for penalties, attorney’s fees, and additional compensation.
Special Considerations for Uninsured and Underinsured Motorist Claims
Illinois requires insurers to offer uninsured motorist (UM) coverage, but underinsured motorist (UIM) coverage is optional. If an at-fault driver lacks sufficient insurance, victims can file a UM or UIM claim with their insurer. These uninsured driver claims must comply with policy-specific time and coverage limits and procedural requirements.
Does Insurance Follow the Car or the Driver in Illinois?
One of the key questions to address in car insurance is: does insurance follow the car or the driver? In Illinois, insurance primarily follows the vehicle, not the driver. This means that if someone else drives your insured vehicle with your permission, your auto insurance policy will generally cover any accident they cause. However, there are key exceptions:
- Excluded Drivers: If you explicitly exclude someone from your policy, your insurer will not cover them, even if they had permission to drive.
- Non-Permissive Use: If someone takes your car without your consent, your insurance may not cover the accident, and their insurance might apply instead.
- Rental and Borrowed Vehicles: If you drive someone else’s car, their insurance is primary, but your policy may provide secondary coverage if additional costs remain.
Common Disputes in Illinois Auto Insurance Claims
Claim Denials and Delays
Insurance companies often deny claims due to policy exclusions, missed deadlines, or disputes over liability. Even valid claims may face delays as insurers conduct lengthy investigations, request excessive documentation, or engage in bad-faith tactics to minimize payouts.
Disputes Over Fault
Illinois follows a modified comparative negligence rule, which means your compensation can be reduced or even denied if you are partially at fault, depending on the percentage of fault. Insurance adjusters may argue you share more blame than you actually do to lower your settlement or deny the claim entirely.
Low Settlement Offers
Even the biggest car insurance companies in Illinois usually offer settlements far below the actual cost of damages. They may undervalue medical expenses, vehicle repairs, and lost wages. Many claimants accept low offers out of frustration or lack of knowledge about their claim’s true worth.
Medical Expense Disputes
Insurers may challenge the necessity of medical treatments, claim injuries were pre-existing, or delay payments to pressure claimants into settling for less. Under Illinois law, accident victims must prove medical expenses are reasonable and directly related to the crash.
Uninsured or Underinsured Drivers
Despite Illinois requiring minimum liability coverage, many drivers are uninsured or underinsured. If the at-fault driver lacks adequate coverage, claimants may have difficulty recovering full compensation, especially without uninsured/underinsured motorist (UM/UIM) coverage.
Bad Faith Insurance Practices
If an insurer wrongfully denies a claim, misrepresents policy terms, or unreasonably delays payments, it may be acting in bad faith. Illinois law allows policyholders to pursue legal action and seek damages for such conduct.
Frequently Asked Questions About Illinois Auto Insurance Claim Laws
Can an insurance company legally deny my claim for not providing a recorded statement?
While Illinois law does not require you to give a recorded statement to the at-fault driver’s insurance, your insurance policy might include a “cooperation clause.” Failing to provide a statement to your insurer could result in a claim denial. However, you are not obligated to give a recorded statement to the other driver’s insurance, and it is prudent to let your attorney handle all communications.
Can an insurance company deny my claim based on a pre-existing condition?
No. Illinois law follows the “eggshell skull” doctrine, meaning an insurer cannot deny your claim simply because you had a pre-existing condition that was worsened by the accident. However, they may attempt to minimize their payout by arguing that your injuries were unrelated to the crash. An experienced attorney can counter this tactic with strong medical evidence.
Can I sue my own insurance company if it unfairly delays my claim?
Yes. Under Illinois law (215 ILCS 5/154.6), insurers must process claims in a reasonable time. If an insurer engages in unreasonable delays, lowball offers, or improper denials, you may sue for insurance bad faith and recover damages, including attorney’s fees and penalties.
How Our Illinois Personal Injury Attorneys Will Negotiate With the Insurer on Your Behalf
After an accident, dealing with the insurance company is a straightforward process. However, negotiating directly with insurers often leads to unfair outcomes. Insurance companies have vast resources, experienced adjusters, and legal teams dedicated to minimizing payouts.
At 844SeeMike Personal Injury Lawyers, we will leave no stone unturned to prove the liability of the negligent party and recover the maximum possible compensation for your injuries and losses.
Unequal Power Dynamic: Leveling the Playing Field
Insurance companies have extensive resources, legal teams, and adjusters trained to protect their bottom line. They employ tactics designed to pressure claimants into quick, lowball settlements. Without legal representation, you are at a serious disadvantage.
Our resourceful personal injury lawyers counter the insurer’s firepower with our own extensive experience, strategic negotiation skills, and access to expert witnesses. We meticulously build strong cases, ensuring insurers recognize that we are prepared to go to trial if necessary. This leverage forces them to take your claim seriously.
Limited Awareness of Your Rights: Our Legal Knowledge Protects You
Most injury victims are unaware of their full legal rights and the value of their claims. Insurers exploit this by misrepresenting policy terms or convincing claimants that they are only entitled to minimal compensation.
At 844SeeMike Personal Injury Lawyers, we have a deep understanding of Illinois personal injury laws and insurance claim procedures. We assess all possible damages—including medical expenses, lost income, pain and suffering, and future losses—ensuring you receive every dollar you are entitled to.
Risk of Settling for Inadequate Compensation: We Don’t Back Down
Insurance adjusters will make lowball offers, hoping you will accept less than you deserve. Once you receive a settlement, you typically waive your right to seek further compensation, even if your injuries worsen.
We never settle for less than you deserve. With a formidable track record of winning substantial settlements and verdicts, we use our trial readiness as a powerful negotiation tool. Insurers know that we will take them to court if they fail to offer fair compensation, giving us the upper hand in negotiations.
Complex Procedures and Tactics: We Handle the Legal Burden
Insurance claims involve strict deadlines, detailed legal filings, and complex negotiations. A single mistake, such as missing a deadline, providing an incomplete statement, or failing to provide key evidence, can hurt your case.
Our attorneys swiftly gather and preserve compelling evidence, including medical records, accident reports, expert testimony, and surveillance footage. We ensure all legal requirements are met, leaving no room for insurers to deny or undervalue your claim.
Emotional Stress and Time-Consuming Process: We Let You Focus on Recovery
Recovering from an accident is stressful enough without battling insurance companies. Negotiating a claim can be time-consuming and emotionally draining, especially when you are dealing with pain and financial stress.
At 844SeeMike Personal Injury Lawyers, we provide personalized representation, handling every aspect of your case so you can focus on healing. Our compassionate team keeps you informed, fights for maximum compensation, and ensures you are never alone in this battle.
Don’t let the insurance company take advantage of you. Reach out to 844SeeMike Personal Injury Lawyers today for a free consultation, and let our dedicated legal team fight for the highest compensation you are entitled to. To schedule your free consultation, call us at 312-786-442 or contact us online.
