Not every driver on Illinois roads is insured through a major national carrier. Some motorists carry policies from nonstandard insurers — companies that specialize in high-risk drivers or minimum-limits coverage. If you were injured in a car accident and the at-fault driver was insured through a company like The General, Bristol West, or Direct Auto, understanding the specific dynamics of a nonstandard insurer accident claim in Illinois can help you approach your case with realistic expectations.
This article provides general legal information; consult a licensed Illinois attorney for advice specific to your situation.
What Makes an Insurer “Nonstandard”?
The term “nonstandard” refers to carriers that primarily issue policies to drivers who have difficulty obtaining coverage through standard markets — often because of prior accidents, traffic violations, gaps in coverage history, or other risk factors. The General, Bristol West, and Direct Auto are among the most commonly encountered nonstandard carriers in Illinois. These companies operate lawfully and are subject to the same Illinois insurance statutes and regulations as any other licensed carrier. The distinction is not about legality — it is about the risk profile of their customer base and the typical policy limits those customers carry.
Illinois Minimum Liability Limits — Updated in 2025
Illinois law requires all motorists to carry liability insurance. Under 625 ILCS 5/7-203, the mandatory minimum limits were raised effective January 1, 2025, by Public Act 103-0514. The new minimums are $30,000 per person / $60,000 per occurrence for bodily injury, and $25,000 for property damage — often written as 30/60/25. This is an increase from the prior 25/50/20 structure. Nonstandard carriers frequently write policies at exactly these minimum limits. That means if your medical bills and lost wages exceed $30,000, the at-fault driver’s policy may not be enough to cover your full loss.
Implications for Underinsured Motorist Claims
When the at-fault driver’s policy limits are exhausted before your damages are fully compensated, your own underinsured motorist (UIM) coverage may fill part of the gap. Illinois law permits — but does not mandate — UIM coverage, so whether it is available depends on your own policy. If the at-fault driver carries only the 30/60/25 minimum and your losses are substantially higher, consulting with an attorney early helps you understand what combination of the at-fault driver’s policy and your own UIM coverage may apply. Documenting all medical treatment and economic loss from the outset is essential to preserving a UIM claim.
Claims Handling Rules Apply Equally to Nonstandard Carriers
Illinois law does not create a separate tier of claims handling obligations for nonstandard carriers. Under 215 ILCS 5/154.6, unfair claims practices — including unreasonable delays, misrepresentation of policy terms, and failure to act promptly on claims — are prohibited for all licensed insurers. Additionally, 50 Ill. Adm. Code Part 919 establishes time standards for acknowledging claims, initiating investigations, and responding to submissions. These standards apply to nonstandard carriers just as they do to major national insurers. If a carrier fails to meet these obligations, that conduct can be relevant to how the claim is handled and may warrant regulatory complaint. Navigating insurance claims after a car accident is always complex, but the regulatory framework provides a consistent baseline regardless of which carrier is involved.
Practical Considerations When Dealing With a Nonstandard Carrier
Nonstandard carriers — like all carriers — have a financial interest in resolving claims for as little as possible. The fact that minimum-limits policies may be involved can create practical pressure to settle quickly and for lower amounts. Before accepting any settlement offer, it is important to have a complete picture of your medical treatment, recovery trajectory, and total economic losses. Accepting a settlement that releases all claims forfeits your right to seek additional compensation later, even if your condition worsens. An attorney can evaluate whether a settlement offer reflects the full value of your claim and whether additional coverage sources — such as your own UIM policy — should be pursued first.
Talk to a Chicago Attorney — Free Consultation
If the at-fault driver in your accident was insured through a nonstandard carrier, Phillips Law Offices can review the policy limits, evaluate your own coverage, and help you pursue full compensation under Illinois law. Call us at (312) 346-4262 or visit our contact page to schedule a free consultation. We represent injured people throughout Chicago and Cook County.
