As you are likely aware insurance laws differ with regard to first and third party claims, so it is important that you understand your rights and duties in both cases. In a first party claim, you have a direct contract that requires your insurance company to fulfill all the conditions stated in your policy. In a third party claim, you do not have a direct contract with the insurance company and their primary obligation is to their own policyholder.

Since you were rear ended in the accident and thus the other party was found at fault in your accident, it would appear that you have placed your claim with their insurance company then the other driver's insurer will investigate the claim and will offer a settlement if they determine their insured is legally responsible for your injuries or damages.

In most cases, the insurance company will not settle your claim until you sign a "release for damages." A release means you agree that the amount offered is the only amount you will ever receive from the other driver and the insurance company. Be sure you are ready to accept a final amount before you cash the check or sign the release.

In some cases, you and the insurance company may readily agree on the amount of property damage, but you may not be ready to settle the bodily injury claim because of ongoing medical bills. An insurance company may not refuse to pay your agreed-upon property damage claim because the bodily injury claim is still outstanding.

Illinois has a "comparative negligence" law (735 ILCS 5/2-1116) which means that more than one person can be at fault in an accident. Under this law, you can collect damages only if you are less than 50% at fault for the accident. The settlement can then be reduced by your percentage of fault.

For example, if the other driver is 80% at-fault and you are 20% at fault, you can collect for your damages because you were less than 50% at fault. However, the other driver's insurance company might only offer to pay for 80% of your damages.

Illinois insurance laws 215 ILCS 5/143.23a require a company to communicate with you within 21 working days after they are notified of the loss.

Auto insurance claims for bodily injury and/or property damage do need to be settled within a certain period of time. The Illinois Division of Insurance stated that one must either accept a final settlement offer, or file a lawsuit, within the time periods required by the appropriate IL statutes of limitations:

For bodily injury claims:

• Within 2 years from the date of the accident; or
• Within 2 years from the date of your 18th birthday if you were under age 18 when the accident occurred.

For property damage claims:

• Within 5 years from the date of the accident, regardless of your age at the time the accident occurred.

For bodily injury or property damage caused by an accident with a government entity:

• Within the appropriate time period imposed by the statute of limitation for that particular entity of government.

If you fail to accept a final settlement offer or file a suit before the statute of limitations ends, you may jeopardize your right to receive any settlement at all.

If you have more questions about the insurance company can take to settle or about your specific claims situation discuss it with the insurance adjuster working on your claim and then for consumer advice you can contact the IL Division of Insurance Toll Free at (866) 445-5364.