Pursuing an Accident Claim Against Friends or Family Members in Illinois

When you’re injured in a car accident caused by a friend or relative, you’re stuck in a tough spot: you need help with medical bills and lost income, but you don’t want to “go after” someone you care about. The good news is that, in Illinois, most of these claims are handled and paid by insurance, not by your loved one personally. In this blog, we explain your rights after being injured in an accident caused by a friend or family member, common misconceptions, and the practical steps to protect your claim (and your relationships).

“Accountability and compassion can coexist. In most family or friend claims, you’re using the insurance you all paid for to cover medical bills and lost wages, not draining a loved one’s savings.” — John J. Malm, Naperville personal injury attorney

Who Actually Pays When You Sue a Friend or Family Member?

In standard auto cases, the at-fault driver’s liability insurer defends the claim and pays covered damages up to policy limits. Illinois requires minimum auto liability insurance of $25,000 per person / $50,000 per occurrence for bodily injury and $20,000 for property damage, so there is usually an insurance policy available even when the at-fault driver is a friend or relative.

• Your loved one’s insurer hires the defense lawyer and pays settlements/awards up to limits.
• If limits are too low, your underinsured motorist (UIM) coverage can sometimes help. (See UM/UIM section below.)
• Driving without insurance is illegal in Illinois and carries significant fines, another reason most claims involve insurance.

The “Household (Family) Exclusion”

Many Illinois auto policies contain a household/family exclusion that limits or bars liability coverage for injuries to people who live in the same household as the insured (for example, a spouse or child). Illinois courts have upheld these exclusions in many cases, including the tragic case of Schanowitz v. State Farm, though every case turns on the actual policy language and facts.

Illinois law also creates statutory exceptions where household exclusions cannot be used to deny coverage:

1. Third-party contribution: If a third party is sued and seeks contribution against a family member, the exclusion does not apply.
2. Non-household driver of insured vehicle: If someone outside the insured’s household was driving the insured vehicle in the crash, the exclusion does not apply.

These exceptions are codified at 215 ILCS 5/143.01.

What this means in real life: Even if you live with the at-fault family member, there may still be coverage avenues depending on the driver, the vehicles involved, and whether any third-party claims trigger the statute’s exceptions. Policy wording matters. Have an experienced Illinois car accident attorney review every potentially applicable policy (auto, umbrella, etc.).

What If You Are Partially At Fault?

Illinois uses modified comparative negligence to determine recovery if you are partially at fault in the accident. Under the rule, if you are more than 50% at fault, you recover nothing; if you are 50% or less at fault, your recovery is reduced by your percentage of fault. Example: if you’re 20% at fault, a $100,000 verdict becomes $80,000.

This rule often comes up when friends or family members disagree about shared fault (e.g., “You were speeding,” “You didn’t buckle up”). Thorough investigation and evidence collection make a big difference.

Preserving Relationships While Protecting Your Future

It’s understandable to worry about “suing” a friend or family member. Here’s how these cases usually work in practice:

• It’s a claim on an insurance policy. Your loved one’s insurer provides the defense and pays covered damages, settlements are often reached without your loved one writing a personal check.
• Open, empathetic communication helps. Explain that you’re using insurance to cover medical bills and lost wages, not attacking them personally.
• Confidential process. Most claims resolve without a public trial, and settlement negotiations are confidential.

Proving Fault

Even when everyone involved is on good terms, you still need to prove fault and damages. Consider:

• Scene evidence: Photos/video, skid marks, debris fields, 911 audio, surveillance.
• Documents: Police report, repair estimates, medical records, wage loss proofs.
• Witnesses & experts: Independent witnesses can resolve “he said, she said” disputes; accident reconstruction can address speed, visibility, and braking.

Special Scenarios That Change the Analysis

• You live with the at-fault driver. Household exclusions may limit liability coverage, but check the 215 ILCS 5/143.01 exceptions, any umbrella policy, and your UM/UIM coverage.
• Someone else was driving your friend’s car. If the driver doesn’t live with the insured, the household exclusion generally does not apply.
• Multiple at-fault drivers. Contribution claims can keep coverage available despite a family exclusion.
• No insurance / suspended plates. Illinois mandates insurance; uninsured driving triggers fines and plate suspensions, but you may still have UM coverage on your own policy.

Frequently Asked Questions about Suing a Friend or Family Member After an Accident

Will my relative’s premiums go up?
Possibly. Insurers may raise rates after a paid claim, but that’s an underwriting decision, not a legal bar to recovery. More importantly, insurance exists for exactly this situation.

Can I settle directly with the insurer?
Yes, but be careful. Adjusters represent the insurer’s interests. An attorney can evaluate policy limits, damages, lien issues (healthcare liens), and whether UM/UIM or umbrella coverage applies.

What if my minor child was hurt by a parent’s negligence?
Auto-negligence claims are generally allowed and the statute of limitations is tolled until the child turns 18 (then two more years). Court approval is typically required for minors’ settlements.

What if we were both partly at fault?
You can still recover if you are 50% or less at fault, but your recovery is reduced by that percentage.

Are there special forms or notices for UM/UIM claims?
Often, yes. Many policies require a prompt arbitration demand, sometimes within two years or less, so review your policy and act quickly.

Contact the 5-Star Rated Illinois Car Accident Lawyers at John J. Malm & Associates

Pursuing an accident claim against a friend or family member in Illinois can feel overwhelming, but you do not have to go through it alone. At John J. Malm & Associates, our team understands both the legal complexities and the sensitive family dynamics that often come with these cases. We have successfully helped injured clients recover compensation through insurance while maintaining important personal relationships. If you or someone you love has been injured in an accident, don’t wait until critical deadlines pass. Contact us today for a free consultation to discuss your options and learn how we can fight to protect your rights, your recovery, and your future.