Illinois Auto Insurance Claim Laws [2025 Guide]

Illinois Is a Fault-Based State

Illinois follows a fault-based system when it comes to auto insurance and accident claims.

This means that the driver who is found to be responsible for causing a car accident is also legally responsible for paying for any resulting damages.

In most cases, the at-fault driver’s insurance company will cover the costs, either by paying the other party directly or reimbursing them for damages like vehicle repairs, medical expenses, or other losses.

This system gives injured parties several legal options.

If you’re involved in a crash in Illinois, options to take include:

• File a claim with your own insurance company, which may seek reimbursement from the at-fault party’s insurer through subrogation.
• File a third-party claim directly with the at-fault driver’s insurance provider, or
• File a personal injury lawsuit in civil court to recover damages.

Illinois law also mandates that all drivers carry minimum liability insurance coverage to legally operate a motor vehicle.

As of 2025, the minimum required coverage limits include:

• $25,000 for bodily injury or death of one person in an accident,
• $50,000 for bodily injury or death of two or more people in one accident, and
• $20,000 for property damage caused in an accident.

These minimums are in place to ensure a basic level of financial protection in the event of a crash.

It’s important to understand that these amounts are often insufficient in more serious accidents, especially those involving extensive medical treatment or long-term disability.

That’s why many drivers opt to purchase coverage above the state minimums, including underinsured or uninsured motorist coverage, which provides added protection if the at-fault driver does not have sufficient insurance.

It’s also critical to note that liability insurance only covers damages to others, not your own injuries or vehicle.

To receive compensation for your own losses regardless of fault, you’ll need optional coverages such as collision, comprehensive, or medical payments coverage.

Knowing how insurance coverage works in Illinois is the first step toward protecting your rights.

After an accident, reviewing your policy and understanding your legal options can help you make informed decisions, especially if you’re dealing with injuries, lost income, or unexpected expenses.

Steps Involved in an Illinois Car Accident Claim

Filing a car accident claim in Illinois involves multiple steps, each of which plays a critical role in determining the outcome of your case.

Understanding how the process works can help ensure that your rights are protected and your claim proceeds smoothly, especially when dealing with insurance adjusters and legal documentation.

What to do after a car accident includes:

1. Report the Accident
2. Seek Medical Attention
3. Document the Scene
4. Determine Liability
5. File Your Claim
6. Negotiate the Settlement

1. Report the Accident

Immediately after a car accident, your first responsibility is to report the incident.

Reporting the accident includes:

• Call 911 and request law enforcement to file an official police report. This report can serve as essential evidence in your claim.
• Notify your insurance company promptly. Most policies require you to report an accident within a short timeframe, often 24–72 hours, even if you’re not at fault.

2. Seek Medical Attention

If you were injured, seek medical treatment immediately.

Don’t delay.

Even minor accidents can result in symptoms that can worsen over time.

Medical records not only support your well-being but also serve as key documentation for an injury claim, especially later when calculating medical bills.

3. Document the Scene

Gathering evidence can strengthen your case.

This includes:

• Photos of vehicle damage, skid marks, road conditions, and traffic signs
• Driver’s license and insurance information from all involved parties
• Contact information for witnesses
• A written account of what happened while the event is still fresh

This information will assist both your insurance provider and any attorney you consult.

4. Determine Liability

In Illinois, fault must be clearly established before compensation can be awarded.

Insurance adjusters will evaluate police reports, statements, and physical evidence to determine liability.

If more than one party shares blame, comparative fault rules will apply, which we’ll discuss later.

5. File Your Claim

You may file either of the two options.

Options include:

• First-party claim with your own insurance provider (if you have collision or MedPay coverage), or
• Third-party claim with the other driver’s insurance company, which is standard in a fault-based state like Illinois.

Your insurer may also help recover funds from the other party’s provider through subrogation if they initially cover your costs.

6. Negotiate the Settlement

Once liability is determined, the insurance company will offer a settlement based on your damages.

This offer may include:

• Medical expenses
• Property damage
• Lost income
• Pain and suffering

It’s important not to accept the first offer without understanding its full value.

Insurance companies often attempt to settle quickly and for less than your claim may be worth.

Injury vs. Property Damage Claims

While property damage claims are generally straightforward and resolved quickly, injury claims are more complex.

Injury claims may ask for compensation for:

• Prolonged medical treatment
• Ongoing physical therapy or rehabilitation
• Mental health considerations (such as anxiety or PTSD)
• Disputes over long-term effects and earning capacity

Because of this complexity, insurance companies may scrutinize injury claims more closely.

Thorough documentation — including medical records, wage loss statements, and mental health evaluations — is crucial.

If your injuries are serious or your claim is being challenged, hiring a car accident attorney can help ensure your rights are protected and your compensation is fair.

Auto Accident Injury Claims: What To Expect

If you’ve been injured in a car accident in Illinois, the insurance claim process becomes significantly more complicated than a standard property damage claim.

Unlike a simple vehicle repair, injury claims must account for both tangible and intangible losses, ranging from medical bills to emotional trauma.

Knowing what to expect can help you navigate the process and avoid mistakes that could jeopardize your compensation.

Medical Expenses and Treatment Costs

The first and most immediate concern in an injury claim is medical treatment, so keep all receipts, bills, and doctor’s notes.

These will serve as evidence when your damages are evaluated, which can include:

• Emergency room visits
• Surgeries
• Diagnostic tests
• Physical therapy
• Follow-up care
• Prescription medications
• Future medical needs

Even if you have health insurance, the at-fault party’s auto insurer may still be liable for your medical expenses.

Your insurance policy may also include MedPay coverage, which can help with out-of-pocket expenses up to the limits of your coverage, regardless of fault.

Lost Wages and Reduced Earning Capacity

Another key element in injury claims is lost wages.

If your injuries prevent you from working — whether temporarily or permanently — you may be entitled to recover the income you would have earned during your recovery.

This can include both past wages and future lost earning capacity if your ability to work has been diminished by long-term injuries or disability.

Supporting documentation such as employer letters, pay stubs, and physician statements can help prove your loss of income and justify compensation.

Pain, Suffering, and Mental Health Damages

Beyond physical injuries, many accident victims experience emotional and psychological trauma.

Conditions like anxiety, depression, and PTSD are common following a serious crash.

Illinois law allows for compensation related to pain and suffering, including emotional distress and reduced quality of life.

These damages are more subjective and harder to quantify, which is why they often face more scrutiny from insurance adjusters.

Consistent mental health treatment records, therapy notes, and expert testimony can all support this part of your claim.

Property Damage Still Matters

Even in injury cases, vehicle damage still plays a role.

If your car is declared a total loss, you’re typically entitled to its actual cash value, which is the market value of the vehicle just before the accident, not its replacement cost.

If you’re still paying off a car loan, there could be a difference between what you owe and what the car is worth. Gap insurance may help cover that gap if included in your policy.

Timeline and Compensation Range

The timeline or duration for injury claims can vary widely depending on the severity of injuries, treatment duration, and whether liability is disputed.

Some claims resolve within a few months, while more complex cases can take over a year, especially if litigation becomes necessary.

Compensation amounts also vary.

Minor injuries might result in settlements of a few thousand dollars, while severe or permanent injuries can lead to six- or even seven-figure recoveries, particularly when lifelong care or extensive loss of income is involved.

Given the complexity and high stakes of injury claims, it’s often in your best interest to consult a personal injury lawyer.

An experienced attorney, like our team, can guide you through documentation, negotiate aggressively with insurance companies, and help ensure you receive the full compensation you deserve under Illinois law.

Comparative Fault in Illinois

Illinois follows a modified comparative fault rule, which can significantly affect the outcome of a personal injury claim.

Under this system, you can recover compensation only if you are less than 51% at fault for the accident.

If you’re found partially responsible, your total compensation will be reduced by your percentage of fault.

If you are awarded $100,000 but determined to be 20% at fault, your recovery would be reduced to $80,000.

Determining fault starts at the accident scene, where evidence such as photos, witness statements, and police reports helps insurers and courts decide who was responsible and to what degree.

It’s important to avoid admitting fault at the scene or during conversations with an insurance agent, as these statements can be used against you later.

You may incur expenses like damage to your vehicle or the need for a rental vehicle while yours is being repaired or replaced.

These costs can be included in your claim, but only if liability is properly established.

Similar to other states, Illinois also imposes a two-year statute of limitations from the date of the accident to file a personal injury claim.

Failing to act within this timeframe can result in losing your right to compensation altogether.

How a Personal Injury Lawyer Can Help

After a car accident, the claims process can quickly become overwhelming.

Insurance companies may delay, dispute, or deny claims, and the legal language in your automobile insurance policy can be confusing.

This is where a personal injury lawyer becomes an invaluable advocate.

Advocating for Your Best Interests

When you’re injured in a crash, the primary goal of your personal injury lawyer is to protect your rights and maximize your compensation.

Insurance companies often attempt to settle quickly and for the lowest possible amount, especially when serious injuries or long-term treatment are involved.

A lawyer can thoroughly evaluate your case, gather necessary documentation, and handle all communication with insurers to avoid common pitfalls.

If your insurance company denies your claim or offers an unfair settlement, an attorney can negotiate on your behalf or escalate the case to litigation if needed.

Their understanding of insurance tactics helps level the playing field.

Identifying All Sources of Compensation

Many people don’t realize that they may be entitled to more than just the at-fault driver’s liability coverage.

If the other driver is uninsured or underinsured, your underinsured motorist coverage (UIM) under your own policy may apply.

This provision helps cover your medical bills and other damages when the at-fault party lacks sufficient insurance to fully compensate you.

An experienced lawyer will review the full scope of your automobile insurance policy to ensure that no coverage options — such as UIM, personal injury protection, or medical payments coverage — are overlooked.

Handling Complex Situations Like Hit-and-Run Accidents

Cases involving a hit-and-run driver are notoriously difficult.

If the responsible party cannot be identified or located, victims may feel helpless.

Many insurance policies include uninsured motorist coverage that applies to hit-and-run situations.

A personal injury lawyer can help you file the appropriate claims and ensure that your own insurance company honors its obligations.

Managing Paperwork, Deadlines, and Legal Procedures

From gathering evidence and medical records to filing paperwork and meeting strict deadlines, your attorney manages the legal legwork so you can focus on your recovery.

This expert understands the procedural rules in Illinois courts and ensures that no critical step is missed, especially with the two-year statute of limitations in personal injury cases.

Contingency Fee Structure: No Upfront Costs

One of the biggest concerns accident victims have is how to afford legal representation.

At TorHoerman Law, we work on a contingency fee basis.

That means you don’t pay any upfront legal fees.

We only get paid if we successfully recover compensation for you.

This model ensures that anyone, regardless of financial situation, can access high-quality legal representation.

Get Help From Experienced Personal Injury Lawyers

Understanding Illinois auto insurance claim laws can be overwhelming, especially when injuries, disputed liability, or denied claims are involved.

Having someone to protect your rights and approach the process, from filing a claim to negotiating with insurers, can make all the difference in your recovery.

Whether you’re dealing with property damage or pursuing compensation for serious injuries, having an experienced legal team on your side is essential.

Contact TorHoerman Law today to schedule a free consultation.

Let us help you protect your rights, hold negligent drivers accountable, and secure the compensation you deserve.

You can also use the chatbot on this page to see if you qualify immediately.