If you’ve recently been involved in a car accident, you may be wondering how to hold the at-fault driver responsible for your injuries or damage to your vehicle. In most cases, the first step is filing an insurance claim with the at-fault driver’s insurance company.
But there’s a catch: you don’t have unlimited time to take legal action. Like all states, Illinois sets a time limit—called the statute of limitations—for filing a claim after an accident. Missing that deadline could mean losing your right to compensation entirely.
In this article, we’ll explain what you need to know about filing a claim, how Illinois insurance laws apply, and how long you have to act under state law.
Under Illinois law (625 ILCS § 5/7-203), all vehicle owners must carry a minimum level of car insurance coverage. These are the current requirements for liability insurance in the state:
This type of insurance policy is meant to cover the medical bills, property damage, and related expenses of other people involved in the crash, whether drivers, passengers, or pedestrians.
However, meeting only the state’s minimum coverage isn’t always enough. If the accident results in serious injuries or expensive repairs, those limits can be reached quickly. Once that happens, the at-fault driver may be personally responsible for any additional costs not covered by their insurance policy.
For that reason, Illinois drivers are encouraged to carry additional insurance coverage. It provides better protection in the event of a serious crash, and it helps reduce the chance that you’ll end up paying out of pocket after a car accident.
Illinois follows a fault-based car insurance system. That means when a car accident happens, the at-fault driver—the one who caused the crash—is financially responsible for any injuries or property damage that result. Typically, that responsibility is handled through the at-fault driver’s insurance policy.
This is different from how things work in no-fault states like Florida, Utah, or Minnesota. In those states, drivers must rely on their own car insurance coverage—specifically personal injury protection (PIP)—to cover medical expenses and other losses, no matter who caused the accident. In most no-fault states, you're limited in when and how you can file a personal injury claim against another driver, unless certain legal thresholds are met.
Because Illinois is a fault state, if you’re injured or your vehicle is damaged in a car accident, you have more options for pursuing compensation:
Each of these options has its own benefits, risks, and timing considerations—and the statute of limitations in Illinois sets a strict time limit on how long you have to take action. (We’ll cover that next.)
After a car accident, it’s important to understand the difference between filing an insurance claim and filing a personal injury lawsuit. Each follows its own timeline, and missing either deadline could affect your ability to recover compensation.
Most insurance companies don’t impose a strict deadline for reporting a claim. Instead, your insurance policy may say that the claim should be filed “within a reasonable amount of time.” While that phrase may sound flexible, it’s still important to act quickly.
The amount of time you have to file an insurance claim often depends on the type of claim, the policy language, and how long it takes to gather necessary documents like a police report. To protect your rights, file the claim as soon as you’re able, and review your specific policy to understand any time-sensitive requirements.
If you need to take legal action—for example, if the at-fault driver’s insurance won’t cover the full cost of your injuries or damages—you’ll need to follow the statute of limitations under Illinois state law.
Under Illinois law, these are the key deadlines to keep in mind:
Failing to act within the required timeframe can permanently prevent you from recovering damages, no matter how valid your claim may be.
Before you start the claims process after a car accident, there are a few things you should consider, especially when it comes to vehicle damage and how insurance companies evaluate your claim:
Also keep in mind that your deductible—the amount you pay out of pocket before coverage kicks in—will be subtracted from your final payout. Understanding these steps early can help you avoid delays or disputes when filing your insurance claim.
Once you file your insurance claim, the insurance company will open an investigation into the accident. This process includes reviewing the police report, examining damage, and potentially speaking with involved parties. If the insurer finds that your claim is valid, they’ll typically offer a settlement.
It’s important to know that if you accept a settlement for a personal injury claim—whether related to bodily injury, property loss, or both—you are agreeing to close the case. That means you cannot take further legal action against the at-fault driver or their insurer later. The settlement becomes final, and the amount you agree to is all you’ll receive.
In Illinois, insurance law includes important deadlines to help protect policyholders:
Also remember: if you choose to file a personal injury lawsuit, your cause of action is subject to a strict limitations period. This legal time limit varies depending on whether your claim is for injury or property damage, but once the window closes, you may lose your right to sue.
Were You Recently Injured in a Car Accident? Speak to an Illinois Personal Injury Attorney
If you were recently injured in a car accident, it’s important to understand your rights and get trusted legal advice before moving forward. At Palermo Law Group, our team has experience handling a wide range of accident cases and will work closely with you to build a strong personal injury claim.
We’re here to guide you through the process—from dealing with insurance companies to pursuing fair compensation in court if needed. Your first step is a free consultation, where we can discuss your case and begin forming an attorney-client relationship built on trust and transparency.
For a free consultation contact our law firm by calling (630) 684-2332 or visit our website at https://www.palermolawgroup.com/.
How long do I have to file a personal injury lawsuit after a car accident in Illinois?
You generally have two years from the date of the accident to file a lawsuit for bodily injury or wrongful death, and five years for property damage claims. This deadline is known as the statute of limitations.
Is there a time limit for filing an insurance claim?
Your insurance policy may not include a firm deadline, but most insurance companies require claims to be filed within a reasonable amount of time. Review your policy to understand what applies in your case.
How does Illinois handle fault in accident cases?
Illinois is a fault-based car insurance state. That means the at-fault driver (and their insurer) is responsible for covering damages. You may file a claim with your own insurer, file a third-party claim, or pursue legal action through the courts.
What if I disagree with the insurance company’s repair estimate?
You can get your own repair estimate and negotiate. The insurer can’t require you to use a specific repair shop, and you're not obligated to accept an offer that doesn't fully cover your losses.
What happens after I file a claim?
The insurance company will investigate your cause of action. If they approve your claim, they’ll likely offer a settlement. Keep in mind—once you accept a settlement, you waive the right to sue later, so it’s important to understand what you're agreeing to.
Do I need a lawyer to file a claim?
While not required, working with a personal injury attorney can make the claims process smoother. A knowledgeable lawyer can help you navigate complex accident cases, communicate with adjusters, and protect your rights. A strong attorney-client relationship can make a major difference in your outcome.