Automobile insurance requirements differ from state to state, and Illinois operates as an at-fault insurance state. Understanding the distinction between no-fault and at-fault insurance is essential for accident victims, as it clarifies their legal options for filing accident claims.
What Is No-Fault Insurance?
No-fault insurance provides coverage to the insured and other covered parties regardless of who causes an accident. This type of insurance coverage is generally referred to as PIP or Personal Injury Protection insurance. No-fault insurance states require drivers to file claims with their insurance company even if the other driver caused the accident.
The benefits provided by no-fault insurance include medical expenses and loss of income. In some states, PIP also provides a small amount for other expenses, such as household services. One of the other advantages of no-fault car insurance is that you can receive benefits quickly. You do not need to sue the other driver or prove fault to receive benefits.
However, no-fault insurance may not compensate you for the full amount of your medical bills and lost wages. It also does not compensate you for pain and suffering damages. Usually, no-fault states allow accident victims to sue at-fault drivers if they sustain serious injuries or meet other requirements.
What Is At-Fault Insurance?
At-fault insurance or liability insurance compensates accident victims for damages when an insured driver causes an accident. It does not compensate the insured for their losses. You must file a claim with the insurance company for the at-fault driver. Before you can recover damages, you must prove the other driver caused the accident.
Establishing liability requires you to prove the other driver was negligent. The legal elements of a negligence claim are:
- Legal Duty: The relationship between you and the other driver created a legal duty of care. All drivers have a duty to use reasonable care when operating a vehicle, including following traffic laws.
- Breach of Duty: The other driver did something to breach the duty of care. For example, a driver was texting while driving, which increases the risk of a crash, or the driver failed to yield the right of way.
- Causation: The other driver’s conduct must be a direct and proximate cause of the car crash. The car crash would not have happened had it not been for the driver’s conduct.
- Damages: The crash must have caused you to incur expenses and injuries.
Liability insurance claims can take months to obtain a settlement agreement. If you file a lawsuit, it could take more than a year to go to trial.
What Are the Automobile Insurance Requirements in Chicago, IL?
Illinois law requires drivers to have minimum amounts of liability insurance coverage (i.e., at-fault insurance). Drivers must have at least:
- $25,000 per person in bodily injury coverage per person and $50,000 per accident
- $20,000 in property damage coverage
Drivers may purchase higher amounts of liability insurance to protect their interests if they cause an accident. Your insurance company is only liable up to your policy limits. If you are sued for a car accident you caused, you would be personally liable for damages awarded by the jury that exceed your policy limits.
You can also purchase optional insurance coverage, including medical payments coverage. Medical payments pay your medical bills if you are in an accident, even if you cause a crash. Medical payment coverage can help bridge the gap between the time of your accident and when you settle a car accident claim.
What Types of Damages Does At-Fault Insurance Pay for an Accident Claim?
If you prove that the other driver caused the car accident, you can file a claim seeking damages. Your damages represent the losses and harm caused by the accident. They include economic damages such as:
- The cost of medical treatment, including rehabilitation and physical therapy
- Out-of-pocket expenses
- Personal and/or nursing care
- Lost wages and benefits
- Diminished earning capacity
You may also recover money for your non-economic damages for a car accident claim, including:
- Impairments and disabilities
- Mental anguish and emotional distress
- Scarring and disfigurement
- Pain and suffering
- Loss of enjoyment of life
- Diminished quality of life
The amount you receive for damages depends on the factors in your case, including the severity of your injuries. The strength of your evidence and your fault can also impact the value of your personal injury claim.
What Is the Deadline for Filing a Car Accident Claim in Chicago, IL?
If you cannot settle your car accident claim, Illinois has a two-year statute of limitations for most personal injury lawsuits. The time begins with the accident date. Lawsuits filed after the deadline are subject to dismissal by the court. Exceptions to the statute can change the deadline in some cases. The best way to avoid missing the filing deadline is to consult with an attorney as soon as possible.
Learn More During a Free Consultation with Our Attorneys
Contact Zayed Law Offices Personal Injury Attorneys for a free case evaluation at (312) 726-1616 with a Chicago car accident lawyer. Our legal team will investigate your car accident to determine fault and liability and fight to obtain the best possible outcome for your accident claim.