What Happens If the At-Fault Driver Has Only Minimum Insurance in Illinois?

What Does Illinois Minimum Auto Insurance Cover After a Car Accident?

In Illinois, drivers are mandated by law to maintain a minimum level of liability insurance. These requirements are aimed at offering essential financial protection to those injured in accidents. However, many victims find that these minimums often fall short when it comes to addressing the costs associated with serious injuries. According to current state regulations, the Illinois minimum auto insurance coverage includes:

• $25,000 for bodily injury or death of a single individual: This is the maximum payout by the insurer for one person's medical costs, pain and suffering, and other related damages.
• $50,000 for bodily injury or death of multiple individuals: In cases where several people are hurt in the same incident, the policy limits the total payout to $50,000, irrespective of the number of victims involved.
• $20,000 for property damage: This amount can be used to cover repairs to your vehicle or other property that sustained damage in the accident.

At first glance, $25,000 might seem like a lot, but a night in a trauma center or a necessary surgery can quickly use it up. In Illinois, there were 303,913 crashes in 2024, many resulting in severe injuries that surpassed basic coverage limits. This is why you should know your auto insurance policy limits. If a driver is asleep behind the wheel and causes a multi-car pileup, that $50,000 limit for bodily injury will be divided among all victims, possibly leaving everyone undercompensated.

What Are Your Legal Options When the At-Fault Driver Is Underinsured in Illinois?

When your recovery costs exceed the at-fault driver’s insurance limits, they are deemed underinsured. For instance, if your medical expenses are $60,000 but the at-fault driver only has $25,000 coverage, there's a $35,000 gap. Typically, the at-fault driver’s insurer will offer the maximum $25,000 in exchange for a release of liability.

Accepting this settlement without speaking to an Illinois car accident lawyer can be a big mistake, as signing a release usually means you cannot pursue further compensation, even if your situation worsens. This is especially concerning for those injured in a car accident while working, as they might face long-term disability and workers' compensation issues.

Additionally, if the driver was in a work vehicle or using a modified car that caused the crash, other insurance policies may apply. If not, victims often have to seek help through their own underinsured motorist claims in Illinois.

If the driver responsible for the accident doesn’t have enough insurance, there are still options you can consider with the assistance of a car accident attorney:

• Underinsured Motorist (UIM) Coverage: Many auto insurance policies in Illinois include UIM coverage. If your coverage limits exceed those of the at-fault driver, your insurance provider might cover the difference, up to your own limits.
• Finding Other Responsible Parties: It's possible that the driver isn’t the sole party at fault. For example, if a mechanical issue contributed to the accident, the manufacturer or a repair service might share the liability. Additionally, if the driver was on the job, their employer could have a more substantial commercial insurance policy.
• Suing the At-Fault Driver: You have the option to take legal action against the at-fault driver to recover remaining damages. Although those with minimal insurance often lack significant assets, an attorney can conduct an asset search to see if pursuing a lawsuit is worthwhile.
• Medical Payment (MedPay) Coverage: Your own insurance policy may include MedPay, which assists with covering medical expenses regardless of fault.

How Can an Illinois Car Accident Lawyer Help When Insurance Is Not Enough?

Navigating the world of insurance companies, including your own, can be challenging, especially when significant amounts of money are involved. An attorney will thoroughly investigate the accident to identify all sources for financial recovery. They'll manage the intricate paperwork associated with underinsured motorist claims in Illinois, ensuring that you receive fair treatment from your insurance provider.

Insurance firms often attempt to downplay the value of your claim to keep payouts within set limits. Your lawyer will compile essential medical documentation, financial, and other evidence to accurately reflect the totality of your losses. Whether it entails negotiating with an insurance adjuster or pursuing a trial for fair compensation from a negligent party, having legal support is crucial when dealing with an underinsured driver.

Understanding what happens if the at-fault driver has only minimum insurance in Illinois is essential for safeguarding your financial well-being. You should not be responsible for medical expenses simply because someone opted for the least amount of coverage. If you need assistance, contact Strong Law to evaluate your situation and help you obtain compensation.

Frequently Asked Questions

What if my damages exceed the at-fault driver’s insurance limits in Illinois?

If damages exceed those limits, the at-fault driver is underinsured. You can pursue the remaining amount through your own Underinsured Motorist (UIM) coverage or by finding other liable parties.

Can I use my insurance if the other driver only has minimum coverage?

If you have UIM coverage, your insurance will cover the difference between your damages, up to your limit, and what the at-fault driver paid.

Do I need a lawyer if the at-fault driver is underinsured?

It is advisable. UIM claims can be complicated, and having a lawyer can help you maximize your recovery and protect you from low settlement offers.