A Woman Lost Her Life, and Her Family Lost Millions Because of One Coverage Decision
She was a high-earning executive. A mother of two. She was driving on a two-lane road when another driver crossed the center line and killed her.
Her family’s claim was worth millions. But her uninsured/underinsured motorist coverage maxed out at $500,000. That was it. There was no second chance, no appeals process, no way to go back and buy more coverage after the fact.
Five hundred thousand dollars for a life. For two children who would grow up without their mother.
Managing partner Steve Phillips, who has practiced personal injury law in Chicago for more than 41 years, shares this story not to frighten you, but because the insurance decisions you make before an accident, and the insurance calls you make after one, can be the difference between full compensation and financial devastation.
At Phillips Law Offices, founded in 1945, we’ve watched clients lose money they were rightfully owed, not because their case was weak, but because they made one of the critical insurance mistakes outlined below. Every single one of these mistakes is avoidable.
As discussed on our podcast, Navigating Negligence, here are the insurance traps you need to know about, and how to sidestep each one.
The #1 Mistake: Talking to the Wrong Insurance Company
After a car accident, your phone may ring within hours. The voice on the other end will sound concerned, professional, even sympathetic. They’ll say they just want to “get your side of the story” so they can “process the claim quickly.”
That caller works for the defendant’s insurance company. And their job is to pay you as little as possible.
Steve Phillips does not mince words on this point:
“Do NOT contact the defendant’s insurance company. N-O-T. They are trained to save the insurance company money. They know how to ask trick questions, unfair questions, incomplete questions.”
These adjusters are not neutral fact-finders. They are skilled professionals with one objective: reduce the company’s financial exposure. Every question they ask has a purpose, and that purpose is not to help you.
Here is what they are really doing when they call you:
- Looking for inconsistencies. If you describe the accident slightly differently than what the police report says, they will use that gap against you at trial.
- Getting you to minimize injuries. “How are you feeling today?” sounds caring. But if you say “I’m doing okay,” that statement becomes Exhibit A when they argue you weren’t really hurt.
- Establishing early contact before you have a lawyer. Once an attorney is involved, they can no longer speak to you directly. They want to lock in your statements before that happens.
The rule is simple: if the insurance company does not cover your vehicle, do not speak with them. Period. Refer them to your attorney.
Why You MUST Contact Your Own Insurance Company
Here’s where it gets counterintuitive. While you should avoid the defendant’s insurer at all costs, you absolutely must contact your own insurance company, and you need to do it fast.
Why? Because your own policy likely contains a clause requiring prompt notification of any accident. If you wait too long, your insurer can argue that you “prejudiced” their ability to investigate. That argument can lead to a complete denial of coverage.
Think about what that means. You’ve been paying premiums for years. You finally need your policy. And they deny your claim because you waited two weeks to call.
Here is what to do:
- Call your own insurance company within 24 hours of the accident, sooner if possible.
- Report the basic facts: date, time, location, other driver’s information, and that you were involved in a collision.
- Do not go into detail about your injuries, fault, or specifics. Keep it to the essential notification. Your lawyer will handle the rest.
- Document the call: Write down the date, time, the name of the person you spoke with, and the claim number they assign.
Notifying your insurer preserves your rights. But there is a critical distinction: notification is not the same as giving a full statement. You owe them notice. You do not owe them a detailed interview without legal counsel present.
Uninsured and Underinsured Motorist Coverage Explained
Most people assume that if someone hits them, that driver’s insurance will cover their damages. In theory, that’s true. In practice, it falls apart constantly.
Illinois requires drivers to carry a minimum of $25,000 in liability coverage. That sounds like a reasonable number until you consider that a single emergency room visit after a serious collision can easily exceed that amount, before you even factor in surgery, physical therapy, lost wages, or long-term care.
Many drivers on Illinois roads carry only the state minimum. Some carry nothing at all.
This is where uninsured motorist (UM) and underinsured motorist (UIM) coverage becomes essential. These coverages come from your own auto insurance policy and protect you when the at-fault driver either has no insurance or does not have enough to cover your damages.
- Uninsured Motorist (UM) Coverage: Pays when the at-fault driver has zero insurance. Also applies in hit-and-run scenarios where the other driver is never identified.
- Underinsured Motorist (UIM) Coverage: Kicks in when the at-fault driver’s coverage is insufficient to cover your full claim. If your damages are $200,000 and the other driver only has $25,000 in coverage, your UIM policy covers the gap.
If you don’t currently know your UM/UIM limits, stop reading this article, find your auto policy declarations page, and check. If your limits are at the state minimum, call your agent today and raise them. The cost difference is often modest, but the protection difference is enormous.
As we discuss in our guide on common mistakes after a motor vehicle accident, not carrying adequate UM/UIM coverage is one of the most costly oversights drivers make.
The Umbrella Policy: The Best $400 You’ll Ever Spend
Remember the executive who was killed on that two-lane road? Her family’s uninsured/underinsured motorist coverage was $500,000. Her claim was worth several times that. The gap between what her family received and what they deserved was staggering.
An umbrella insurance policy could have closed that gap.
Steve Phillips is emphatic about this:
“I strongly recommend a one-million-dollar umbrella policy. It costs about $400 a year. That’s roughly a dollar a day to protect your family from a catastrophic situation where the other driver doesn’t have enough coverage.”
An umbrella policy sits on top of your existing auto and homeowner’s insurance. It provides an additional layer of liability protection, and critically, it can also extend your UM/UIM coverage depending on the policy.
For roughly $400 per year, you get $1 million in additional coverage. The math speaks for itself.
Ask your insurance agent about umbrella coverage this week. If you are a high wage earner, a parent, a business owner, or anyone who would face serious financial consequences from a catastrophic injury, this is not optional, it is essential.
The Recorded Statement Trap
Here’s something most accident victims don’t realize: when you file a claim against your own uninsured or underinsured motorist coverage, your own insurance company essentially becomes your adversary. They have all the same defenses available to them as the at-fault driver’s insurer would.
That means your own insurance company’s lawyer is trained to find weaknesses in your claim. And one of their most effective tools is the recorded statement.
Attorney Michael Phillips shared a case that perfectly illustrates this trap:
“We had a case where there was actual video of the crash. The insurance company asked our client questions as if the video didn’t even exist, they were trying to find inconsistencies. Their strategy was simple: ‘If your client’s lying about the accident, your client’s lying about his pain.’”
Read that again. The insurer had the video. They knew exactly what happened. But they still asked leading, deceptive questions designed to get the client to describe the accident in a way that didn’t perfectly match the footage. Any discrepancy, no matter how minor, becomes a credibility attack.
The logic the insurance company uses at trial is devastating: if the plaintiff got one detail of the accident wrong, why should the jury believe anything they say about their pain and suffering?
This is why you should never give a recorded statement to any insurance company, including your own, without your attorney present. You have an obligation to cooperate with your carrier. You do not have an obligation to walk into an interrogation unprepared.
Putting It All Together: What to Do After a Car Accident in Illinois
The days immediately following a car accident are when the most damage gets done, not to your car, but to your case. Here is your checklist:
- Do NOT speak with the defendant’s insurance company. Refer all calls to your attorney.
- Do contact your OWN insurance company immediately. Report the accident, get a claim number, but do not provide a detailed statement.
- Hire a personal injury attorney before giving any recorded statement. This applies to conversations with any insurer, including your own.
- Review your UM/UIM coverage limits today. If they are at the state minimum, raise them.
- Purchase an umbrella policy. A $1 million policy for roughly $400/year is among the smartest financial decisions you can make.
- Be cautious on social media. As we discuss in our post on social media and personal injury cases, what you post online can and will be used against you.
Frequently Asked Questions
Do I have to talk to the other driver’s insurance company after a car accident in Illinois?
No. You have absolutely no legal obligation to speak with the at-fault driver’s insurance company. They may call you, send letters, or imply that you need to cooperate with them to get your claim processed. That is not true. You only have obligations to your own insurance carrier. Direct all communications from the other driver’s insurer to your attorney.
What happens if I don’t notify my own insurance company quickly enough?
Your policy almost certainly requires timely notification of any accident. If you delay, your insurance company may argue that you “prejudiced” their ability to investigate the claim. In a worst-case scenario, they could deny your claim entirely, even for coverage you’ve been paying for. Contact your insurer within 24 hours of the accident.
What is the minimum car insurance required in Illinois?
Illinois requires minimum liability coverage of $25,000 per person and $50,000 per accident for bodily injury, plus $20,000 for property damage. These minimums are dangerously low. A serious injury can easily generate medical bills exceeding $25,000 before the victim even leaves the hospital. That is why adequate UM/UIM coverage on your own policy is so important.
What is an umbrella insurance policy and do I need one?
An umbrella policy provides additional liability coverage beyond the limits of your standard auto and homeowner’s policies. A $1 million umbrella policy typically costs around $400 per year. If you are seriously injured by a driver who carries only the state minimum coverage, an umbrella policy can be the difference between recovering a fraction of your damages and recovering fully. The attorneys at Phillips Law Offices strongly recommend umbrella coverage for every driver.
Can my own insurance company use my recorded statement against me?
Yes. When you file a claim under your uninsured or underinsured motorist coverage, your own insurer has the same defenses available as any opposing party. Their attorneys are trained to find inconsistencies in your recorded statement and use them to undermine your credibility. Always have your attorney present before providing any recorded or written statement, even to your own insurance company.
Talk to a Chicago Car Accident Attorney Today
The insurance landscape after a car accident is designed to confuse you, rush you, and get you to say the wrong thing to the wrong person. It doesn’t matter how smart or careful you are, these systems are built by professionals whose entire career is devoted to minimizing what you receive.
At Phillips Law Offices, we’ve spent more than 75 years protecting accident victims across Chicago and Illinois. Our attorneys, Steve Phillips, Steven J. Phillips, Michael Phillips, and Alec Mesrobian, have seen every insurance tactic there is, and we know how to fight back.
Call Phillips Law Offices today for a free consultation. We’ll review your insurance situation, protect you from recorded statement traps, and make sure the insurance companies don’t take advantage of you during the most vulnerable time of your life.
Listen to more from our attorneys on the Navigating Negligence podcast, where we break down the legal issues that matter most to injury victims in Illinois.
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