Insurance Claim Rights in Illinois
Illinois is an at-fault state with a modified comparative fault system. The state has strong consumer protections, including mandatory uninsured motorist coverage and written denial explanations. Illinois offers a very generous 5-year statute of limitations for property damage, one of the longest in the nation. Chicago's dense traffic makes comprehensive coverage particularly valuable.
25/50/20
Min. Liability
2 yrs
PI Deadline
5 yrs
PD Deadline
Yes
Diminished Value
Fault System
How Illinois's At-Fault (Tort) System Works
Illinois is an at-fault (tort) state. This means the driver who caused the accident is financially responsible for the other party's damages. After an accident, you file a claim against the at-fault driver's insurance company. If the claim is denied or undervalued, you have the right to file a lawsuit to recover your damages.
Deadlines
Statute of Limitations in Illinois
Personal Injury
2 Years
You have 2 years from the date of the accident to file a personal injury lawsuit in Illinois. Missing this deadline permanently bars your right to seek compensation for medical bills, lost wages, and pain and suffering.
Property Damage
5 Years
For property damage claims (vehicle repairs, total loss, personal property), Illinois allows 5 years to file a lawsuit. This includes diminished value claims if applicable. Report damage to your insurer as soon as possible: report to insurer within 30 days; police report required for accidents with injury or damage over $1,500.
Coverage Requirements
Minimum Auto Insurance in Illinois
Illinois requires all drivers to carry at least 25/50/20 in liability coverage. These numbers represent the minimum bodily injury per person / bodily injury per accident / property damage limits in thousands of dollars. While these are the legal minimums, higher coverage is strongly recommended.
Bodily Injury / Person
$25,000
Maximum per injured person
Bodily Injury / Accident
$50,000
Maximum per accident total
Property Damage
$20,000
Maximum for property damage
Diminished Value
Diminished Value Claims in Illinois
Illinois Allows Diminished Value Claims
After an accident in Illinois, your vehicle may lose market value even after high-quality repairs — this is called "diminished value." Illinois allows you to file a diminished value claim against the at-fault driver's insurance to recover the difference between your vehicle's pre-accident and post-repair market value. The amount recoverable depends on the vehicle's age, mileage, damage severity, and repair quality.
Calculate your diminished valueKey Laws
Important Insurance Laws in Illinois
Illinois follows a modified comparative fault rule with a 50% bar — no recovery if you are 50% or more at fault (735 ILCS 5/2-1116).
Uninsured/underinsured motorist coverage is required in Illinois and must be offered at limits equal to your liability coverage.
Illinois requires insurers to provide a written explanation when denying or reducing a claim.
Resources
Illinois Department of Insurance
If you have a complaint about your insurance company or need help with a claim dispute in Illinois, contact the state Department of Insurance. They regulate insurance companies operating in Illinois and can assist with claim disputes, bad faith complaints, and coverage questions.
FAQ
Frequently Asked Questions About Illinois Insurance Claims
Does Illinois require uninsured motorist coverage?
Yes, Illinois requires uninsured and underinsured motorist coverage. Your insurer must offer UM/UIM limits equal to your liability limits. You can choose lower limits but must do so in writing.
How long do I have to file a property damage claim in Illinois?
Illinois has a generous 5-year statute of limitations for property damage claims, one of the longest in the country. For personal injury claims, the deadline is 2 years from the date of the accident.
What is the comparative fault threshold in Illinois?
Illinois uses a modified comparative fault rule with a 50% bar. If you are 50% or more at fault, you receive no compensation. If you are less than 50% at fault, your damages are reduced by your fault percentage.
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