What Does “No-Fault” Mean for Your Illinois Car Accident Claim?

A no-fault car accident claim means your own auto insurance pays for your initial medical bills and lost wages through a coverage called Personal Injury Protection (PIP), regardless of who caused the crash. However, Illinois is an “at-fault” state, not a no-fault state. This means the person who caused the accident is financially responsible for the damages.

This distinction is the source of significant confusion, especially if your accident involves a driver from a no-fault state or occurred while you were traveling. Speaking with an experienced car accident attorney in Palatine, Illinois can help you understand your rights and the best path forward.

If you have a question about your car accident and how your bills will be paid, call us at (224)539-8821.

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First, How Does an Illinois Car Accident Claim Actually Work?

After a crash, your immediate concern is your health and your mounting bills. In Illinois, you can’t just turn to your own insurance for everything. You must establish that the other driver was negligent.

This involves gathering evidence, dealing with the other driver’s insurance adjuster, and proving your case. The other driver’s insurance company will conduct its own investigation, looking for ways to argue you were at fault to reduce what they have to pay. This system is called a “tort” or “at-fault” system.

Defining “At-Fault”

This legal concept simply means the person responsible for the harm pays for it. To establish fault, you must show that the other driver was negligent—i.e., that they failed to operate their vehicle with reasonable care and that this failure directly caused your injuries and other losses.

The Path to Compensation in Illinois

In our state, there are three primary ways to seek compensation after a collision:

File a claim with the at-fault driver’s insurance: This is the main route for recovering damages in Illinois. Your claim will be against their bodily injury and property damage liability coverage.
File a claim with your own insurance: You might do this if you have specific coverages like collision (for your car) or Medical Payments (MedPay) for initial medical bills. Your insurer may then seek reimbursement from the at-fault driver’s insurer in a process called subrogation.
File a personal injury lawsuit: If the insurance company refuses to offer a fair settlement, this is the next step to hold the at-fault driver accountable.

Unlike in a no-fault system, your ability to recover full compensation in Illinois hinges on proving the other party’s negligence. This is why a thorough investigation and a carefully prepared claim are so important.

So, What Is a “No-Fault” System and How Is It Different?

Have you ever heard that after some accidents, it doesn’t matter who was at fault? That’s the core idea behind a no-fault system. In states like Florida and Michigan, the law requires drivers to carry no-fault insurance, also called Personal Injury Protection (PIP).

What is Personal Injury Protection (PIP)?

Think of PIP as a required coverage that pays for your own medical bills and, in some cases, lost wages up to a certain limit, no matter who caused the crash. For example, Florida’s system requires drivers to carry PIP that covers 80% of medical bills and 60% of lost wages up to a $10,000 limit. This is designed to get money into accident victims’ hands quickly without waiting for a lengthy fault investigation.

The goal of the no-fault system was to speed up payments for injuries and reduce the number of lawsuits clogging the courts. While it sounds simpler, the no-fault system has its own set of rules and limitations.

The “Threshold”

A key feature of no-fault systems is the “threshold.” You can only sue the at-fault driver for damages like pain and suffering if your injuries are serious enough to meet a specific threshold.

This can be a monetary amount (your medical bills exceed a certain dollar figure) or a verbal description (your injury involves permanent disfigurement or a serious impairment of a body function). If your injuries don’t meet this threshold, you are generally limited to the benefits provided by your own PIP coverage.

What PIP Doesn’t Cover

IPIP does not cover pain and suffering or other non-economic damages. It also doesn’t cover property damage—your car repair claim is still handled based on who was at fault, even in a no-fault state.

When Could a “No-Fault” System Affect Your Illinois Claim?

As an Illinois driver, you operate under at-fault rules. But accidents don’t always respect state lines. You might find yourself in a crash in a neighboring no-fault state, or get hit by a tourist from a no-fault state right here in Illinois. The rules suddenly become murky, and insurance companies may use this confusion to their advantage.

Let’s look at two common scenarios involving what is a no fault car accident claim and how it could impact you.

Scenario 1: You’re an Illinois resident injured in an accident in a no-fault state (e.g., Michigan).

If you are injured in a no-fault state, the laws of that state will apply to your accident. Your initial medical bills may be handled differently. For example, Michigan’s no-fault law dictates a specific order of who pays for medical expenses, and we can help determine if your own policy or the other driver’s PIP coverage applies first. To sue the at-fault Michigan driver for pain and suffering, your injuries must meet Michigan’s “serious impairment of body function” threshold.

Scenario 2: A driver from a no-fault state hits you in Illinois.

This situation is much more straightforward: Illinois law applies. Because the accident happened here, our at-fault system governs the claim. You will make a claim against the at-fault driver’s liability insurance, just as you would with an Illinois driver. The fact that their policy includes PIP for their own injuries does not change their responsibility for the harm they caused you. Their insurance company is still liable for your medical bills, lost wages, and pain and suffering.

At Vito & Dollenmaier Law, we handle these cross-state insurance issues. We understand how different state laws interact and ensure the correct rules are applied to your claim, protecting you from jurisdictional confusion.

What About Damage to My Car? Is That “No-Fault”?

The term “no-fault” almost exclusively applies to injuries, not vehicles. In nearly every state, including no-fault states like Florida and New York, property damage is handled based on fault.

How Your Car Gets Fixed

The person who caused the crash is responsible for paying for the damage to your vehicle. The “no-fault” concept does not change this. There are two ways this typically happens:

The At-Fault Driver’s Insurance Pays: You file a claim under the other driver’s property damage liability coverage. Their insurer is responsible for the cost of repairs or the actual cash value of your car if it’s a total loss.
You Use Your Own Collision Coverage: If you have collision coverage on your own policy, you can use it to get your car fixed faster. You’ll pay your deductible, and your insurance company will then pursue the at-fault driver’s insurer for reimbursement, including getting your deductible back for you.

The bottom line is that when it comes to your vehicle, the driver who is at fault for the accident is the one whose insurance has to pay for the repairs.

How Does MedPay Work with Health Insurance and Other Benefits After an Illinois Car Accident?

What is MedPay?

MedPay is an optional add-on to your Illinois auto policy. It pays for medical expenses for you and your passengers, regardless of who caused the accident. Coverage limits typically range from $1,000 to $10,000, and the money is paid quickly, without a lengthy investigation into fault.

Who Pays First: MedPay or Health Insurance?

MedPay comes first: After a crash, your MedPay coverage pays medical bills up to its limit before your health insurance kicks in.
After MedPay runs out: Your health insurance will then pay for any remaining medical care, subject to deductibles and co-pays.
You do not need to prove fault to use MedPay—it’s designed for immediate relief, so you’re not left waiting while insurers argue about blame.

How Does MedPay Interact with Your Settlement?

Subrogation may apply: If your health insurance pays for your accident-related treatment and you later win a settlement from the at-fault driver, your health insurer may ask to be repaid (this process is called subrogation).
MedPay and repayment: In some cases, your MedPay insurer may also seek reimbursement from your settlement, but most policies are structured to benefit you directly. It’s important to check your policy and ask your lawyer if repayment is expected.

What If You Have PIP from Another State?

If you’re visiting Illinois from a no-fault state and carry Personal Injury Protection (PIP), those benefits may also be available for your injuries. However, your own MedPay will pay first, followed by your PIP coverage, if it applies. Each policy will have its own rules and limits.

MedPay Does Not Cover Everything

Lost wages, pain and suffering, and other non-medical damages are not covered by MedPay. You’ll need to pursue the at-fault driver’s liability insurance for those losses.
MedPay only pays up to your policy limit. Once you reach that cap, you’re responsible for any further bills until another coverage (like health insurance or the at-fault driver’s insurance) steps in.

How to Use These Coverages Effectively

Notify your MedPay carrier of the accident promptly and provide copies of your medical bills.
Keep all Explanation of Benefits (EOBs) and receipts for your records.
Ask your lawyer to coordinate between MedPay, health insurance, and any other policies to maximize your benefits and reduce out-of-pocket expenses.

Frequently Asked Questions About Illinois Car Accident Claims

What if the other driver’s insurance company says Illinois is a “comparative negligence” state? What does that mean?

It’s a legal rule that means you can still recover damages even if you were partially at fault, as long as you were not 51% or more at fault. Your compensation is simply reduced by your percentage of fault. This is based on Illinois’s modified comparative negligence statute, 735 ILCS 5/2-1116.

How long do I have to file a car accident lawsuit in Illinois?

In most cases, the Illinois statute of limitations for personal injury claims is two years from the date of the accident. For property damage, it’s five years. There are some exceptions, so it is important to act promptly to protect your rights.

Why do some states have no-fault laws and others don’t?

States with no-fault laws implemented them with the goal of reducing lawsuits and providing faster medical payments. However, these systems have faced criticism for potentially increasing costs, which is why states like Illinois have stuck with the traditional at-fault model that holds negligent parties directly accountable.

Let Vito & Dollenmaier Law Bring Clarity to Your Claim

When you’re dealing with an injury, the last thing you need is a lecture on comparative tort law. You just need to know how your family will be taken care of.

At Vito & Dollenmaier Law, an experienced personal injury attorney in Palatine, Illinois will handle the legal hassles so you can focus on your recovery. We understand Illinois’s at-fault system inside and out, and we know how to manage claims that cross state lines.

Don’t let insurance confusion stand in the way of your physical and financial well-being.

Call us for a straightforward conversation about your accident. We are here to help. Contact us at (224)539-8821.