If you were hurt by a driver who had no insurance or too little of it, your own policy is often the thing that pays you. Illinois requires every auto policy to carry uninsured motorist protection, and your insurer must offer underinsured motorist coverage that matches your liability limits. Knowing how those coverages work, and how the state’s fault and deadline rules apply, can be the difference between a full recovery and a fraction of it.
An experienced car crash lawyer with deep knowledge of Illinois car insurance claim laws can help you pursue the compensation actually available to you across every policy that applies.
Illinois Auto Insurance Requirements
Illinois follows a traditional fault-based insurance system, meaning the driver responsible for causing an accident is liable for the damages. Every vehicle registered in Illinois has to be covered by a liability policy (625 ILCS 5/7-601), and the minimum limits that policy must carry come from 625 ILCS 5/7-203:
- Bodily injury liability: $25,000 per person / $50,000 per crash
- Property damage liability: $20,000 per crash
Separately, every Illinois auto liability policy must also include uninsured motorist bodily-injury coverage of at least $25,000 per person and $50,000 per crash, and that portion cannot be rejected (215 ILCS 5/143a).
These minimum limits ensure that at-fault drivers can compensate victims for bodily injury and property damage. Optional coverages, such as underinsured motorist coverage, collision, and comprehensive coverage, provide further protection. Weigh the added premium against the protection it buys before you decline any of them.
Underinsured Motorist Coverage in Illinois
Underinsured motorist (UIM) coverage is a part of your own auto policy that pays you when the at-fault driver has insurance, just not enough to cover what you actually lost. Because the state minimum a driver can legally carry is only $25,000 per person, a single serious injury can blow past those limits long before your medical bills stop. UIM is designed to fill that gap.
In Illinois, your insurer is legally required to offer you UIM coverage, and to include it at limits equal to your uninsured motorist coverage whenever that coverage exceeds the state minimum (215 ILCS 5/143a-2). In practice, that means if you carry higher liability limits, your UIM protection generally rises to match unless you reject the higher amount in writing.
How UIM Coverage Pays Out
UIM does not stack on top of the full at-fault policy as separate, extra money. Illinois law reduces your UIM limit by what you already recover from the at-fault driver’s insurer, so you are made whole up to your own limit rather than paid twice for the same loss (215 ILCS 5/143a-2). A simple example:
- The at-fault driver’s insurer pays its $25,000 limit
- Your UIM limit is $100,000
- Your UIM coverage pays the difference, up to $75,000 more
That setoff is written into the statute, and it is a common source of dispute. Adjusters sometimes calculate the offset aggressively or challenge how your damages were valued, which is where a careful review of the policy language matters.
Uninsured Motorist (UM) Coverage vs. UIM
The two coverages sound alike but turn on different facts. Uninsured motorist coverage applies when the at-fault driver has no liability insurance at all, whether the policy lapsed, was canceled, never existed, or did not cover that driver. Underinsured motorist coverage applies when the driver has insurance but the limits are too low. Both are bodily-injury coverages, and both require you to prove the other driver was at fault, the same as you would in a claim against that driver directly.
Under 215 ILCS 5/143a, every Illinois auto liability policy has to include uninsured motorist bodily-injury coverage at no less than the state minimum, and that portion cannot be rejected. UM coverage typically pays for:
- Medical bills from the crash
- Lost wages and lost earning capacity
- Pain and suffering
- Future medical care tied to your injuries
Stacking and Multiple Policies
When more than one policy could apply, the amount available is not always the simple sum of every limit. Illinois law provides that the limits for a vehicle under a policy may not be aggregated with the limits for similar coverage on other vehicles, whether written by the same insurer or a different one (215 ILCS 5/143a). Whether coverage can be combined depends on the specific policy language and how the insured person relates to each policy, so it is worth pulling every household auto policy, any employer policy, and any umbrella policy before you settle. A coverage analysis often changes what a claim is actually worth.
Hit-and-Run and Uninsured Property Damage
UM coverage can reach a driver who hit you and fled. When the vehicle is never identified, insurers generally look for corroborating evidence, such as physical contact between the vehicles or an independent witness, before paying a “phantom vehicle” claim. Illinois law backs that up on the property side: an insurer may limit uninsured-motorist property-damage recovery to damage caused by actual physical contact with the uninsured vehicle (215 ILCS 5/143a). Uninsured motorist property damage is also a separate, optional coverage in Illinois, and the absence of a premium payment for it counts as conclusive proof that you elected not to carry it (215 ILCS 5/143a). Policies also tend to impose short internal notice deadlines for hit-and-run and unidentified-vehicle claims that can be far shorter than the lawsuit deadline, so report any such crash to your own insurer and the police as soon as possible. If you are unsure of your policy’s notice window, treat it as urgent and ask a lawyer to review it.
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 own insurer under coverages 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 generally two years from the date of the accident (735 ILCS 5/13-202), while property damage claims must be filed within five years (735 ILCS 5/13-205).
One deadline runs much earlier and catches people out. If the other vehicle belonged to a city, township, park district, school district, transit agency, or any other local public entity, or the driver was one of its employees acting in that role, the suit must be filed within one year of the date the injury was received (745 ILCS 10/8-101). That one-year bar can end the case on its own while the two-year clock still looks open, so a crash involving a municipal plow, a squad car, or a bus needs to be dated and evaluated immediately.
Determining Fault in an Illinois Auto Insurance Claim
Illinois uses a modified comparative negligence system (735 ILCS 5/2-1116), meaning you can recover damages only if you are not more than 50% at fault for the accident. Your compensation is then reduced by your percentage of fault.
For example, if a driver is found 30% at fault and incurs $100,000 in damages, they would recover $70,000 after the 30% reduction.
Bad Faith Insurance Practices in Illinois
Illinois law expects insurers to handle claims fairly. Section 154.6 of the Insurance Code lists improper claims practices, which 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
What Section 154.6 does not do is hand you your own lawsuit. It sets standards the Director of Insurance enforces, and Illinois courts have not read a private right of action into it. Your remedy runs through 215 ILCS 5/155, which lets a court award reasonable attorney’s fees, other costs, and an additional amount when an insurer’s conduct or delay in settling a policy claim is vexatious and unreasonable. That additional amount is capped by the statute, which measures the ceiling against 60% of what the court or jury finds you are entitled to recover, a flat $60,000, and the excess of that amount over whatever the insurer offered in settlement. Illinois also does not recognize a separate common-law bad-faith tort for a first-party claim against your own insurer, so Section 155 is the vehicle rather than an add-on to it.
Does Insurance Follow the Car or the Driver in Illinois?
One of the key questions in a car insurance claim is whether insurance follows the car or the driver. In Illinois, insurance primarily follows the vehicle. If someone else drives your insured vehicle with your permission, your policy will generally cover an accident they cause. There are key exceptions:
- Excluded drivers: if you explicitly exclude someone from your policy, your insurer will not cover them, even with your permission
- Non-permissive use: if someone takes your car without consent, your insurance may not apply, and their insurance might instead
- Rental and borrowed vehicles: if you drive someone else’s car, their insurance is primary, but your policy may provide secondary coverage
Common Disputes in Illinois Auto Insurance Claims
Claim Denials and Delays
Insurance companies often deny claims over policy exclusions, missed deadlines, or disputes about liability. Even valid claims can stall while insurers conduct lengthy investigations, request excessive documentation, or use delay tactics to minimize payouts.
Disputes Over Fault
Illinois follows a modified comparative negligence rule, so your compensation can be reduced or denied if you are found partially at fault. Adjusters may argue you share more blame than you actually do to lower a settlement or deny the claim outright.
Low Settlement Offers
Insurers usually open with settlements far below the actual cost of the damages. They may undervalue medical expenses, vehicle repairs, and lost wages, and many claimants accept low offers out of frustration or a lack of information about what the claim is really worth.
Medical Expense Disputes
Insurers may challenge whether treatment was necessary, claim injuries were pre-existing, or delay payment to pressure claimants into settling for less. Under Illinois law, accident victims must show medical expenses are reasonable and related to the crash.
Uninsured or Underinsured Drivers
Despite the mandatory minimums, many drivers carry no insurance or only the bare minimum. If the at-fault driver lacks adequate coverage, recovering full compensation can be difficult without UM/UIM coverage on your own policy.
Bad Faith Insurance Practices
If an insurer wrongfully denies a claim, misrepresents policy terms, or unreasonably delays payment, that conduct may support relief under Section 155. Illinois law lets policyholders press the policy claim and ask the court for fees, costs, and a capped additional award on top of it.
How 844-SEE-MIKE Negotiates With the Insurer on Your Behalf
Negotiating directly with an insurer often leads to unfair outcomes. Insurance companies have vast resources, experienced adjusters, and legal teams whose job is to minimize what they pay. At 844-SEE-MIKE, we work to prove the other party’s liability and pursue the full compensation available for your injuries and losses.
Leveling the Playing Field
Insurers use their resources to pressure claimants into quick, lowball settlements. Without legal representation, you are at a serious disadvantage. We counter with experience, strategic negotiation, and access to expert witnesses, and we build cases so that insurers know we are prepared to go to trial if needed.
Protecting Your Rights
Most injury victims do not know the full value of their claims, and insurers exploit that by misrepresenting policy terms. We assess every category of damages, including medical expenses, lost income, pain and suffering, and future losses, so nothing you are owed gets left out.
Guarding Against an Inadequate Settlement
Once you accept a settlement, you typically waive the right to seek more, even if your injuries worsen. We use trial readiness as leverage in negotiations and work to recover substantial settlements and verdicts, with the understanding that past results do not guarantee a future outcome.
Handling the Legal Burden
Insurance claims involve strict deadlines, detailed filings, and complex negotiations, and a single misstep can hurt your case. We gather and preserve evidence, including medical records, accident reports, expert testimony, and available footage, and make sure the requirements are met so insurers have less room to deny or undervalue the claim.
Letting You Focus on Recovery
Recovering from a crash is stressful enough without fighting an insurer. We handle every part of the case, keep you informed, and let you focus on healing.
Frequently Asked Questions About Illinois Auto Insurance Claim Laws
Is underinsured motorist coverage required in Illinois?
Underinsured motorist coverage itself is not something every policy is forced to carry, but Illinois law requires your insurer to offer it and to include it at limits equal to your uninsured motorist coverage whenever those limits exceed the state minimum (215 ILCS 5/143a-2). Uninsured motorist bodily-injury coverage, by contrast, is mandatory on every Illinois auto policy and cannot be rejected below the minimum.
How does underinsured motorist coverage work in Illinois?
UIM pays the difference between what the at-fault driver’s insurance covers and what you actually lost, up to your own UIM limit. Illinois reduces your UIM limit by the amount you recover from the at-fault driver, so if you carry $100,000 in UIM and the at-fault driver pays $25,000, your UIM can add up to $75,000 more.
Can an insurance company legally deny my claim for not providing a recorded statement?
Illinois law does not require you to give a recorded statement to the at-fault driver’s insurer. Your own policy may include a cooperation clause, so failing to cooperate with your insurer could affect a first-party claim. Even so, you are not obligated to give a recorded statement to the other driver’s insurer, and it is wise to let your attorney handle communications.
Can an insurance company deny my claim based on a pre-existing condition?
No. Illinois follows the “eggshell skull” doctrine, meaning an insurer cannot deny your claim simply because a pre-existing condition was worsened by the accident. Insurers may still argue your injuries were unrelated to the crash, which strong medical evidence can counter.
Can I sue my own insurance company if it unfairly delays my claim?
You have a remedy, but a specific one. Section 154.6 of the Insurance Code lists improper claims practices, though it is enforced by the Director of Insurance rather than through your own lawsuit, and Illinois does not recognize a separate common-law bad-faith tort for a first-party claim. What you can do is bring the claim on your policy and ask the court for relief under 215 ILCS 5/155, which allows reasonable attorney’s fees, costs, and a statutorily capped additional amount when the insurer’s conduct or delay was vexatious and unreasonable.
How long do I have to sue after an Illinois car crash?
Generally two years from the date of the crash for personal injury (735 ILCS 5/13-202) and five years for property damage (735 ILCS 5/13-205). If a city, transit agency, or other local public entity or its employee is involved, the deadline drops to one year from the date the injury was received (745 ILCS 10/8-101), so confirm which clock applies early.
Talk to an Illinois Auto Insurance Claim Lawyer
Do not let the insurance company take advantage of you after a crash. The information here is general and not legal advice about your specific situation. For a free, no-pressure consultation, Contact 844-SEE-MIKE and let our team review your claim.
