Who Pays for Injuries After a Car Crash?
Updated: 7 hours ago
When it comes to deciding how an injured party will be compensated after a car collision, the at-fault party, the insurance coverages available, and the state laws that govern such situations should be considered. Generally, the at-fault driver’s bodily injury liability insurance can pay the injured person’s costs up to the policy limits.
In no-fault states, an injured individual can look into their personal injury protection insurance policy first before seeking compensation. Other insurance policies, like health insurance and uninsured motorist coverages, among others, might be used depending on the situation.
According to the Insurance Information Institute, the average paid bodily injury liability claim in the United States stood at $28,278 in 2024.
According to Illinois car accident lawyer Jack D. Franks, you need an experienced personal injury attorney to assist you with filing a car accident claim to ensure that you receive the maximum compensation allowed by law for your damages.
Understanding which insurance policy may apply can help injured drivers and passengers determine how to pursue compensation after a collision. Let’s take a closer look.
Fault States and No-Fault States
As per the Insurance Information Institute, there are twelve states along with Puerto Rico that have compulsory no-fault auto insurance. In such cases, one's personal injury protection insurance covers expenses up to the policy limits, regardless of who caused the accident.
It is possible for the injured party to take legal action against the other driver in case his injury exceeds a certain threshold. Either the injury could be death or disfigurement, or a certain dollar figure could be reached through the medical expense incurred.
In other places, liability insurance of the at-fault party is considered primary.
Illinois Sets a Low Floor
Northern Illinois is one such place where car accident cases may differ from community to community, such as McHenry, Boone, DeKalb, DuPage, Kane, Lake, and Winnebago counties as well as Rockford and Belvidere.
A collision might result in some sort of injuries, which will then necessitate proper medical care and recovery. If the negligent driver happens to be uninsured, then uninsured motorist coverage comes in handy.
This is important considering that the state minimums are very low. As a matter of fact, the state minimum limits for bodily injury liability and property damage liability insurance are set at $25,000 and $50,000 per person/per accident and $20,000, respectively.
The minimum limits for uninsured motorist bodily injury coverage are $25,000 and $50,000. If a driver buys the minimum limit, they might not even cover a hospital visit.
North Carolina Raised Its Minimums
North Carolina makes a useful contrast. In the Statesville area, the legal firm at https://www.cleaveslawfirm.com/ handles personal injury cases arising from motor vehicle crashes. This also includes criminal defenses and workers’ compensation matters across the state.
For policies issued or renewed on or after July 1, 2025, North Carolina requires at least $50,000 for injury to one person and $100,000 for injury to two or more people. For property damage, it’s $50,000.
Earlier, it was $30,000, $60,000, and $25,000, respectively. Uninsured motorist coverage is mandatory by law.
When the Other Driver's Policy Runs Out
Serious accidents usually exceed liability limits. In this case, victims will have no choice but turn to alternative sources of compensation. In cases like this, underinsured motorist insurance available on an insured person’s car insurance policy would kick in.
An individual’s medical payments insurance would provide quick compensation without having to wait for a fault finding. Private medical insurance would also pay for treatments, although these policies generally expect reimbursement of all payments from any eventual settlements.
The personal property of the driver at fault is a potential source, but in reality, most motorists rarely have anything more than their policy.
This is why it is important to get adequate coverage on an individual’s own policy, as it is to have the other party covered.
Why Timing and Paperwork Matter
Insurers pay based on documentation. Police reports, photos, witness information, medical records, and proof of lost wages provide important evidence that are useful to strengthen a claim.
That’s why gaps in treatment or missing paperwork can be disadvantageous. Adjusters use this reason to question how much of an injury came from the crash.
There are also cases when drivers don’t check their insurance coverage until after the accident. In this case, reviewing the policy's declarations page can help them understand their liability limits and uninsured or underinsured motorist coverage. Having enough coverage may help protect them from major expenses after a serious crash.