Total loss by formula
Car insurance claim rules in Illinois
The deadlines an Illinois insurer works under, what a total loss settlement must include, when to call the police, and how long you have to sue.
By Valoroath Editorial Team Updated 7 min read
In plain terms
Illinois sets its claim rules in Part 919 of the Department of Insurance's regulations. An insurer must respond to your communications within 15 working days, decide within a reasonable time, and offer payment within 30 days after it accepts liability. If a collision claim is still open 40 days after you report it, the insurer must explain why in writing and tell you the department is available to help. A total loss settlement must follow set valuation rules, and sales tax and fees are repaid if you buy another car within 30 days. Call the police after a crash with an injury or more than $1,500 of damage. You have two years to sue for injuries.
- Total loss rule
- Insurer's formula, no %
- Insurer must decide
- Reasonable time
- Deadline to sue
- 2 yrs injury, 5 property
- Fault system
- At-fault
Illinois claim rules on one sheet
- Total loss rule No percentage for insured cars; insurer's formula 625 ILCS 5/3-117.1: salvage title after a paid total loss; its 70% test applies only to self-insured owners.
- Insurer must acknowledge 15 working days to respond to a communication
- Insurer must decide A reasonable time; pay within 30 days of accepting liability Collision claims open over 40 days (60 for property damage liability) need a written explanation (50 Ill. Adm. Code 919.80).
- Deadline to sue 2 years for injury; 5 years for property damage
- Fault system At-fault; recovery barred above 50% fault
- Police report needed At once for injury, death or damage over $1,500 ($500 if a car is uninsured)
- State crash report None from drivers since 2021; police report the crash 625 ILCS 5/11-406 was repealed by P.A. 102-560 (effective August 20, 2021). Some cities require a local report.
A summary by Valoroath of the state's statutes and regulations, not an official document. The sources are listed at the end of this page.
The clock on an Illinois claim
Part 919 of Title 50 of the Illinois Administrative Code, Improper Claims Practices, puts days on the general duties in the Insurance Code. The rule asks for a decision within a reasonable time rather than a fixed count, but it sets firm points along the way.
| Step | Deadline | Section |
|---|---|---|
| Respond to your communications | 15 working days at most | 919.40 |
| Offer payment once liability is accepted and the amount is settled | 30 days | 919.50(a) |
| Explain a denial or reduced payment in writing (your own policy) | 30 days after the decision | 919.50(a)(1) |
| Explain an open collision claim, with notice of the department's help | When unresolved more than 40 days after it was reported | 919.80(b)(2) |
| Same for a property damage claim against another driver's insurer | When unresolved more than 60 days | 919.80(b)(3) |
The rule's definition of a prompt investigation also includes a real effort to communicate with you within 21 working days after notice of the loss. Keep dated copies of what you send. Our page on claims that drag on shows how to follow up.
Total loss settlements in Illinois
Section 3-117.1 of the Illinois Vehicle Code requires an insurer that pays a total loss claim to get a salvage certificate and send in the title within 20 days. It sets no repair percentage for insured cars: the 70% test in that section applies to companies that insure themselves. So the insurer's formula decides when your car is totaled. If the car is 9 model years old or older, you and the insurer can agree that you keep it.
- An explanation within 7 days. Section 919.80(c) requires the insurer to give you the information in the department's total loss notice within 7 days of deciding the car is a total loss.
- Valuation rules. A cash settlement must use a qualifying published or electronic source, or at least two written dealer quotes if the car isn't listed. No deductions for dealer prep or getting a car ready to go.
- Tax and fees. On a cash settlement, the insurer repays sales tax and title and transfer fees if you buy or lease a car within 30 days and send proof within 33 days of receiving the settlement.
- A way back in. If you can't buy a comparable car for the settlement within 30 days of getting the check, the insurer must reopen the file.
How to test the value is in our guide to total loss claims.
Repairs and estimates
Section 919.80(d) covers repairs. On request, the insurer must give you its estimate. If your shop's estimate is higher, it must respond promptly and name a shop that will do the work for its figure, or tell you in writing that it will pay reasonable costs above its estimate. It can't make you travel unreasonably for an estimate or a repair. Deductions for wear, missing parts or rust are limited to $500, and aftermarket parts must be at least equal in kind and quality to the originals.
Reporting an Illinois crash
Section 11-407 of the Vehicle Code requires the driver to notify the police right away, by the fastest means available, after a crash that injures or kills someone or causes property damage over $1,500. The limit is $500 if any car involved has no liability insurance. Inside a city, call the local police; elsewhere, the county sheriff or the Illinois State Police.
Section 11-406, which required drivers to file their own written crash report with the state, was repealed in 2021. Some cities require a local report by ordinance, so ask the officer or the city.
Fault, deadlines to sue and complaints
Illinois is an at-fault state. Under Section 2-1116 of the Code of Civil Procedure, you recover nothing if your fault is more than 50% of the cause, and otherwise your award drops by your share. Section 13-202 gives two years to sue for injuries, and Section 13-205 gives five years for damage to property.
- Ask the insurer in writing for the reason for a denial or a low offer and the policy language it relies on.
- Use the notice you received. The 40-day and 60-day letters must tell you that the Department of Insurance is available to help.
- File a complaint online through the department's Help Center, or by mail or email; our guide to insurance department complaints shows what to include.
Questions people ask
How long does an Illinois insurer have to settle a car insurance claim?
It must decide within a reasonable time, offer payment within 30 days after accepting liability, and send a written explanation if a collision claim is still open more than 40 days after you reported it (60 days for a property damage claim against another driver's insurer).
Does an Illinois total loss settlement include sales tax?
On a cash settlement, the insurer repays sales tax and title and transfer fees if you buy or lease a car within 30 days and send proof within 33 days of receiving the settlement, under Section 919.80(c)(3).
Do I have to file a crash report with the state in Illinois?
The statewide driver report in Section 11-406 was repealed in 2021. You must still call the police right away after a crash with an injury, a death or more than $1,500 of damage ($500 if a car is uninsured), and some cities require a local report.
How long do I have to sue after a car accident in Illinois?
Two years for injuries (Section 13-202 of the Code of Civil Procedure) and five years for damage to property (Section 13-205).
Sources on record
- Illinois General Assembly — Public Act 104-0767 (HB 4160), right to appraisal
- 50 Ill. Adm. Code 919.40 — Definitions (reasonable promptness, prompt investigation)
- 50 Ill. Adm. Code 919.50 — Required practices for all insurance companies
- 50 Ill. Adm. Code 919.80 — Automobile claims, total losses and repairs
- 625 ILCS 5/3-117.1 — Salvage certificates after a total loss
- 625 ILCS 5, Chapter 11 (2025) — Sections 11-406 (repealed) and 11-407, crash notice
- 735 ILCS 5, Article XIII (2025) — Limitations, Sections 13-202 and 13-205
- 735 ILCS 5, Article II (2025) — Section 2-1116, comparative fault
- Illinois Department of Insurance — File a complaint
Facts on this page were checked against these sources on November 11, 2026. Statute text is from the 2025 edition of the Illinois Compiled Statutes.
Ask a licensed agent to review your coverage
After a claim, the policy you had is the one you can still change. Describe your situation and Valoroath passes it to licensed insurance agents and insurers who can review your coverage and quote, if you want them to. Valoroath itself does not sell insurance or handle claims.
- 1 Five questions about your car, your record and your policy.
- 2 Who to ask for, and your consent to be contacted.
- 3 A licensed insurance agent or insurer reviews what you have. You change nothing unless you choose to.
Sending this request shares your answers and contact details with the licensed insurance agents and insurers who receive it, which some state privacy laws treat as a sale; see your privacy choices. An agent reviews your coverage; they can't take on your claim or a dispute with your insurer. You pay Valoroath nothing. The licensed insurance agents and insurers who contact you pay Valoroath for requests and set their own prices and terms; your claim stays with your insurer. How we make money.
Next in the file
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How claims work
Total loss claims
When a car is totaled, what actual cash value should include, and what happens to the loan and the title.
-
Claim dispute
Disputing a total loss value
How to check the valuation report, the comparable car rules, the 35-day reopener, and what comes next.
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After a crash
When to call the police
The cases for 911, state damage thresholds from $50 to $4,000, and why a report helps after a small crash.