One of the most common questions after a Chicago car crash is whether you should use your own insurance or the other driver’s to handle your vehicle damage and related losses. The answer depends on several practical factors: how quickly you need your car repaired, whether liability is disputed, what your deductible is, and how much you want to interact with the at-fault driver’s insurer directly. Understanding those factors — and the Illinois law that governs both paths — helps you make the choice that fits your situation.
This article provides general legal information; consult a licensed Illinois attorney for advice specific to your situation.
The Two Paths: First-Party and Third-Party Claims
A first-party claim means you file against your own auto policy — specifically your collision coverage — to repair or replace your vehicle after a crash. A third-party claim means you file against the at-fault driver’s liability policy directly. Both options can ultimately result in your vehicle being repaired and your out-of-pocket costs being addressed, but they move through different processes on different timelines and with different friction points.
Collision coverage is optional under Illinois law; you only have it if you chose to purchase it. If you carry it, your own insurer handles the repair process directly and you pay your deductible. If you go through the at-fault driver’s insurer (the third-party path), you deal with a carrier that has no contractual relationship with you and no obligation to prioritize your convenience.
Speed: Why Your Own Insurer Is Often Faster
Speed is the most common reason to use your own collision coverage. Your insurer has a direct contractual relationship with you and regulatory obligations to handle your claim promptly. Under 50 Ill. Adm. Code 919.80, auto insurers must acknowledge physical damage claims and begin the inspection process within specific timeframes. Your own carrier has an incentive to move your claim efficiently — your premiums fund the relationship and your satisfaction matters to them contractually.
A third-party claim with an unfamiliar insurer can move more slowly. That insurer’s obligation is to its insured, not to you. It may take additional time to investigate liability before authorizing repairs — particularly if the at-fault driver has offered a conflicting account of what happened. If you need your vehicle repaired quickly to get to work or handle daily responsibilities, using your own collision coverage and letting your insurer pursue subrogation is often the faster path.
Your Deductible and Subrogation Recovery Under Illinois Law
The primary concern with using your own collision coverage is paying your deductible upfront. If you carry a $500 or $1,000 deductible, that is real money out of your pocket. Illinois law provides a mechanism for getting it back. Under 215 ILCS 5/143b, when your insurer pays your claim and then recovers money from the at-fault party through subrogation, your insurer must return your deductible to you on a pro-rata basis from what was recovered. Subrogation is the legal process by which your insurer steps into your shoes and pursues the at-fault driver or their insurer to recoup what it paid out.
This means that if liability is clear and the at-fault driver is insured, you are not necessarily losing your deductible permanently by using your own coverage. Your insurer will pursue the at-fault party’s insurer, and when it recovers, your deductible comes back to you under the pro-rata formula in 215 ILCS 5/143b. The timeline for that recovery depends on how quickly subrogation is resolved, which can range from weeks to several months depending on the complexity of the dispute.
Rate-Impact Concerns
Many drivers hesitate to use their own collision coverage because they worry about premium increases at renewal. Whether a not-at-fault claim affects your rates depends on your specific insurer and policy. Illinois does not prohibit insurers from considering claims history when calculating premiums, but many carriers distinguish between at-fault and not-at-fault claims in their underwriting guidelines. Reviewing your policy’s terms or calling your insurer’s customer service line before filing gives you a clearer picture of the risk before you make the decision.
If your insurer confirms that a not-at-fault claim will not affect your renewal rate — and many standard policies take that position — the rate concern largely disappears. If there is any risk of rate impact, weighing that risk against the speed and convenience advantages of using your own coverage is a personal financial decision that depends on your specific policy terms.
When the Third-Party Path Makes More Sense
Filing directly against the at-fault driver’s insurer avoids your deductible entirely if the claim is accepted — you pay nothing upfront and the third-party insurer pays for repairs directly. This path works well when liability is unambiguous, the other driver has admitted fault, there is a police report clearly placing fault on them, and the at-fault insurer is responsive. If all of those conditions are present, a third-party claim can resolve efficiently without you ever touching your own policy.
Third-party claims are more difficult when liability is contested. If the at-fault driver’s insurer is disputing fault or conducting a lengthy investigation, your vehicle sits unrepaired while you wait. In those situations, using your own collision coverage to get your vehicle fixed quickly and letting your insurer handle the subrogation dispute is often the more practical choice. For broader context on how to navigate these decisions, reviewing insurance claims after a car accident provides useful background on both first- and third-party processes in Illinois.
Bodily Injury Claims Are Separate From Property Damage
The first-party versus third-party decision described above applies primarily to your vehicle damage claim. Your bodily injury claim — compensation for medical expenses, lost wages, and pain and suffering — follows a different path and different rules. Bodily injury claims against the at-fault driver’s liability coverage are handled separately from property damage claims, and the timelines, documentation requirements, and valuation considerations are distinct. Even if you use your own collision coverage for your vehicle, you may still have a third-party bodily injury claim to pursue against the at-fault driver’s liability insurer simultaneously.
If your own medical payments (MedPay) coverage applies, that coverage pays your medical bills up to its limit regardless of fault, and your insurer may have subrogation rights against any bodily injury recovery you obtain. Understanding how your own coverages interact with your bodily injury claim is an important step before accepting any settlement offers.
Talk to a Chicago Attorney — Free Consultation
If you or a family member has been harmed in a crash and you have questions about which insurance path makes sense for your situation, the attorneys at Phillips Law Offices are ready to help. Call (312) 346-4262 or contact us online for a free, no-obligation consultation.
