What Happens When a Car Accident Claim Exceeds Insurance Limits in Illinois?

Car accidents are unfortunate incidents that can lead to significant physical, emotional, and financial distress. In Illinois, like in many other states, drivers are required to have a minimum amount of auto insurance to cover damages in the event of an accident. However, what happens when the cost of damages and injuries exceeds the insurance limits of the at-fault driver? Understanding the implications of your damages exceeding insurance limits is crucial for anyone involved in a car accident.

Statistics Highlighting the Importance of Adequate Coverage

The financial impact of car accidents is substantial. According to the National Highway Traffic Safety Administration (NHTSA), the economic cost of motor vehicle crashes in the United States in 2010 was $242 billion, which includes medical expenses, lost productivity, legal costs, and property damage. Additionally, a study by the Insurance Information Institute found that approximately 14% of drivers in the U.S. were uninsured in 2022, highlighting the risk of encountering an underinsured or uninsured driver .

In Illinois, the situation is similar. A 2020 report by the Insurance Research Council estimated that 11.8% of Illinois drivers were uninsured, underscoring the need for adequate insurance coverage and the potential challenges in recovering damages after an accident.

Understanding Illinois Auto Insurance Requirements

In Illinois, drivers are required to carry the following minimum liability insurance coverage:

• $25,000 for bodily injury per person
• $50,000 for bodily injury per accident
• $20,000 for property damage per accident

While these minimums provide a baseline of financial protection, they may not be sufficient in serious accidents. According to the Illinois Department of Transportation, there were 295,604 motor vehicle crashes in Illinois in 2021, with 75,583 resulting in injuries and 1,211 being fatal . Given the high cost of medical care and vehicle repairs, it is not uncommon for the damages in a serious accident to easily surpass the minimum limits.

When Damages Exceed Insurance Limits

When the total damages from a car accident exceed the at-fault driver’s insurance coverage, several potential outcomes can arise:

Underinsured Motorist Coverage

Illinois drivers can protect themselves by carrying underinsured motorist (UIM) coverage, which kicks in when the at-fault driver’s insurance is insufficient. UIM coverage can help cover medical expenses, lost wages, and other damages not fully compensated by the at-fault driver’s policy. It is advisable for drivers to review their policies and consider purchasing UIM coverage to mitigate the risk of encountering an underinsured driver. Pursuing a UIM claim is generally the best course of action if damages exceed the at-fault driver’s insurance limits.

Assets and Wage Garnishment

In cases where the at-fault driver cannot pay the excess amount out-of-pocket, the injured party may pursue legal action to recover the remaining damages. If successful, the court may order the at-fault driver to sell assets or garnish wages to satisfy the judgment. This often is a lengthy and complex process and often results in partial recovery of the owed amount.

The Role of Personal Injury Lawyers

Navigating the complexities of a car accident claim that exceeds insurance limits can be daunting. This is where a personal injury lawyer can provide invaluable assistance. Experienced attorneys can help victims understand their rights, evaluate the full extent of their damages, and identify all potential sources of compensation.

Case Assessment and Investigation

A personal injury lawyer will conduct a thorough investigation to gather evidence, assess the damages, and build a strong case. This includes reviewing police reports, medical records, and witness statements, as well as consulting with experts to determine the long-term impact of injuries. The personal injury lawyer will thoroughly investigate the at-fault driver’s insurance, including whether the at-fault driver had additional insurance that can be pursued.

Negotiating with Insurance Companies

Insurance companies often aim to minimize payouts, making it challenging for accident victims to receive fair compensation. A skilled personal injury lawyer will negotiate with insurance companies on behalf of their clients, striving to secure a settlement that adequately covers all damages.

Pursuing Legal Action

If a fair settlement cannot be reached, a personal injury lawyer may recommend pursuing legal action. This involves filing a lawsuit against the at-fault driver to recover the remaining damages. An experienced attorney will navigate the legal system, advocate for their client’s rights, and work towards achieving a favorable outcome.

Exceeding insurance limits in a car accident can lead to significant financial challenges for both the victim and the at-fault driver. Understanding Illinois auto insurance requirements, the potential outcomes of exceeding those limits, and the importance of underinsured motorist coverage can help drivers better prepare for the unexpected. Consulting with a personal injury lawyer can provide crucial support in navigating these complex situations and ensuring that victims receive the compensation they deserve.

For anyone involved in a car accident in Illinois, seeking legal guidance and understanding your insurance coverage options are essential steps in protecting your financial and legal interests.

Contact the Illinois Personal Injury Lawyers at John J. Malm & Associates

If you or a loved one has been injured in a car accident where your damages exceed the at-fault driver’s policy limits, contact the Illinois car accident attorneys at John J. Malm & Associates to learn more about underinsured motorist claims and how you may be able to receive compensation for your injuries.