The single most important thing to establish in a Kemper auto claim is the policy limit, and to do it early. Kemper exited the preferred home and auto market in 2023 and its remaining personal auto business, Kemper Auto, is a specialty carrier serving the non-standard market. In practice that means an Illinois Kemper policy is more likely than average to be written at or near the state minimum, and if it is, the coverage, not the injury, will decide what you can recover.
That is not a criticism of the company. It is a structural fact about the book it writes, and it should change the order in which you do things.
What a minimum-limits policy means in practice
Illinois requires only $25,000 per person and $50,000 per crash for bodily injury, plus $20,000 property damage, under 625 ILCS 5/7-203. A single ambulance ride, an emergency department visit and an MRI can approach $25,000 before anyone discusses lost income.
| If the policy is… | What follows |
|---|---|
| State minimum, 25/50/20 | The liability claim is capped quickly. Your own underinsured motorist coverage becomes the main event, not a footnote. |
| Higher limits | The liability claim carries the case and the usual valuation fight applies. |
| Unknown | Find out before you invest months in negotiation, see how to find the other driver’s policy limits. |
Where limits are thin and injuries are not, a well-made policy limits demand is often the fastest route to the whole available coverage. Under Haddick v. Valor Insurance, 198 Ill. 2d 409 (2001), the insurer’s duty to settle does not arise until someone demands settlement within the limits, so the demand is what creates the exposure. See policy limits demands.
Why Non-Standard Carriers Get More Litigation Scrutiny, Not Less
There is a common misconception that a non-standard, minimum-limits book of business means a carrier fights less hard on individual claims because there is less money at stake. The opposite is often true in practice: when the policy limit is small relative to a serious injury, the case is more likely to head toward a policy-limits demand and, if refused, litigation aimed at the driver’s personal assets and the claimant’s own UIM coverage, both of which raise the stakes for everyone involved beyond just the face value of the policy. Because a driver carrying only minimum coverage frequently has few personal assets to satisfy a judgment beyond that policy, the practical value of a documented, well-timed policy-limits demand, and a clean paper trail showing the insurer had a fair opportunity to settle within limits, matters more with a thin policy than a large one, not less.
Your own coverage is likely to matter more than usual
This is the practical consequence of a minimum-limits defendant, and it is where these claims are won or lost.
- Underinsured motorist coverage on your own policy fills the gap between what the at-fault driver carries and what your claim is worth. Illinois requires uninsured motorist coverage on every auto policy under 215 ILCS 5/143a.
- Notify your own UIM carrier before you settle with Kemper. Settling with the at-fault driver without giving your UIM insurer notice and the opportunity to consent can jeopardise the UIM claim entirely.
- Remember the setoff. UIM does not stack on top, your UIM limit is reduced by what you recover from the at-fault driver. See how UIM setoff works.
- Check every policy in the household, not only the one on the car you were driving.
Full guide: uninsured and underinsured motorist claims.
A Realistic Example
Hypothetical, for illustration only: A Chicago claimant is struck by a Kemper-insured driver carrying the Illinois minimum, 25/50/20. The claimant’s injuries, a fractured collarbone requiring outpatient surgery, generate roughly $60,000 in documented damages, well above the $25,000 available from Kemper. The claimant’s attorney sends a clean, well-documented policy-limits demand within a reasonable window. Kemper tenders its full $25,000 promptly, which resolves the liability side quickly since the carrier has every incentive to close out a policy it knows is inadequate before any Haddick-style exposure develops. The attorney then turns immediately to the claimant’s own UIM carrier, notifying it before accepting the Kemper tender, and pursues the remaining roughly $35,000 gap through the UIM claim. The case resolves in two coordinated tracks rather than one long negotiation, precisely because the thin liability policy was identified and dealt with early instead of being treated as the whole picture.
Practical steps in a Chicago claim
- Establish the limits first. Everything else follows from that number.
- Do not give a recorded statement without advice, see what it is really for.
- Put requests in writing and diary the Part 919 dates below.
- Preserve evidence early. Business and CTA video in Chicago is commonly overwritten within one to four weeks.
- Watch the medical liens. On a small policy the lien negotiation can determine whether you keep anything at all, see medical liens after a Chicago crash.
If the driver turns out to have no coverage at all, see claims involving non-standard insurers.
The rules that apply whoever the carrier is
Illinois regulates claim handling, and the deadlines run against the insurer rather than you. Under 50 Ill. Adm. Code 919:
- 15 working days to acknowledge a pertinent communication
- 21 working days for a bona fide effort to communicate with claimants where liability is reasonably clear
- 30 days to offer payment after liability is affirmed and the amount is not in dispute
- 45 days, if there is still no determination, you are owed a written explanation for the delay
- A denial must identify the policy provision it rests on and be accompanied by the Notice of Availability of the Department of Insurance
Illinois also defines improper claims practices at 215 ILCS 5/154.6, and 215 ILCS 5/155 provides a remedy, attorney’s fees, costs and a penalty, where an insurer’s conduct is vexatious and unreasonable. A complaint to the Illinois Department of Insurance is free and is recorded against the carrier.
Deadlines
| Claim | Deadline to file suit | Authority |
|---|---|---|
| Personal injury | Two years from the crash | 735 ILCS 5/13-202 |
| Vehicle damage | Five years | 735 ILCS 5/13-205 |
| Against a city, county or the CTA | One year | 745 ILCS 10/8-101 |
Frequently Asked Questions
Is Kemper a non-standard insurer?
Kemper announced its exit from the preferred home and auto market in 2023. Its continuing personal auto business, Kemper Auto, is a specialty carrier serving non-standard customers. That makes a minimum-limits policy more likely than average, which is why establishing the limit early matters.
How do I find out the policy limits?
Ask, and if that does not produce an answer there are other routes once suit is filed. Because the limit often decides the case where coverage is thin, it is worth pursuing before investing months in negotiation.
What if the Kemper policy is not enough to cover my injuries?
Your own underinsured motorist coverage is designed for exactly that. Notify your UIM carrier before settling with the at-fault insurer, and be aware that UIM limits are reduced by what you recover from the at-fault driver.
How long does Kemper have to respond to my claim?
The same rules apply to every carrier in Illinois. Under 50 Ill. Adm. Code 919 there are 15 working days to acknowledge a communication, and if there is no determination within 45 days you are owed a written explanation for the delay.
How long do I have to sue?
Two years from the crash for personal injury under 735 ILCS 5/13-202, five years for vehicle damage, and only one year if a city, county or the CTA is involved.
Should I worry that a minimum-limits driver has no money to pay a judgment beyond the policy?
This is a real, practical concern and one reason the UIM claim against your own carrier often matters more than the underlying judgment against a minimum-limits driver personally. A documented judgment can sometimes be collected against future wages or assets over time, but the realistic, faster path to full recovery on a serious injury is almost always the combination of the liability tender plus your own UIM coverage, not chasing a driver’s personal assets.
Does it matter if I was the passenger rather than the driver in a Kemper-insured vehicle?
As a passenger you are almost never at fault, which simplifies the liability side, but the same coverage-adequacy analysis still applies: you will want to know the Kemper policy’s limits and check whether your own auto policy (if you have one) or a household member’s policy provides UIM coverage that could apply to you as an injured occupant.
Related guides on dealing with the insurance company
- Start here: Dealing with Insurance Companies After a Chicago Car Accident: Tactics to Watch
- Dealing With Esurance Claims After a Chicago Car Crash
- Dealing With Liberty Mutual After a Chicago Car Crash
- Dealing With Nationwide Insurance After a Chicago Car Crash
- Dealing With Progressive After a Chicago Crash
- Dealing With State Farm After a Chicago Crash
Talk to a Chicago car accident lawyer. Phillips Law Offices offers a free case review, and there is no fee unless we recover for you. Call (312) 346-4262 or request a free case review.
This article is general information about Illinois law, not legal advice, and reading it does not create an attorney-client relationship. Illinois law changes; confirm anything you intend to rely on with a licensed Illinois attorney.