Who Pays Medical Bills After a Car Accident in Illinois?

Last Updated: April 2, 2026

Medical bills after a car accident are paid through the at-fault driver’s liability insurance if you win your claim or settle; if the driver is uninsured, your UM/UIM coverage or medical payment coverage pays bills. You are not personally responsible for these bills.

One of the most stressful parts of being in a car accident is the flood of medical bills that starts arriving — sometimes within days of the crash. Emergency room visits, ambulance rides, imaging scans, follow-up appointments, physical therapy, and prescription medications can add up to tens or even hundreds of thousands of dollars. If someone else caused the accident, you should not have to shoulder that financial burden alone.

At Parker & Parker Attorneys at Law, we help Peoria-area car accident victims navigate the complicated process of getting their medical bills paid. Understanding who is responsible — and when — is essential for protecting your finances and your legal claim.

Illinois Is a Fault-Based State

Unlike no-fault states where your own insurance pays your medical bills regardless of who caused the accident, Illinois is a fault-based (tort) state. This means the driver who caused the accident — or more specifically, their insurance company — is ultimately responsible for paying your medical expenses and other damages.

However, “ultimately responsible” is the key phrase. The at-fault driver’s insurance company will not start writing checks to your doctors the day after the crash. The claims process and potential lawsuit can take months or even years to resolve. In the meantime, your medical providers still expect to be paid.

Your Health Insurance Pays First

In most cases, your own health insurance is the first line of defense for paying medical bills after a car accident. Whether you have coverage through your employer, the ACA marketplace, Medicare, or Medicaid, your health insurance will generally cover accident-related treatment just like any other medical care — subject to your deductible, copays, and coinsurance.

Many people are surprised to learn this, and some worry that using their health insurance will somehow hurt their legal case. The opposite is actually true. Using health insurance provides two major benefits: it keeps your bills manageable while your case is pending, and health insurers typically negotiate lower rates with providers than you would pay out of pocket, which can actually benefit your case.

Your health insurer may have a right of subrogation, meaning they can seek reimbursement from any settlement or verdict you receive. An experienced attorney can often negotiate this lien down significantly, putting more money in your pocket.

Medical Payments Coverage (MedPay)

If you have Medical Payments coverage (MedPay) on your own auto insurance policy, this is another excellent resource. MedPay covers medical expenses resulting from a car accident regardless of who was at fault. Common MedPay limits in Illinois range from $5,000 to $25,000.

MedPay is particularly valuable because it pays quickly, covers deductibles and copays that your health insurance does not, and in many cases does not have a subrogation right — meaning you may not need to repay it from your settlement. Check your auto policy or ask your agent whether your MedPay has a subrogation clause.

The At-Fault Driver’s Liability Insurance

The at-fault driver’s bodily injury liability insurance is the primary source for compensating you for your medical bills, lost wages, pain and suffering, and other damages. However, this compensation typically comes in a lump sum at the end of the claims process — either through a settlement or a court verdict.

Understanding the insurance settlement timeline in Illinois helps you plan financially. Most car accident claims settle within several months to two years, depending on the complexity of the case and the severity of the injuries. During this time, you need other resources to keep your medical bills current.

Letters of Protection and Medical Liens

If you do not have health insurance or your coverage is limited, your attorney may arrange for treatment under a letter of protection (LOP). This is an agreement between your attorney and the medical provider stating that the provider will be paid from your eventual settlement or verdict.

Many doctors, chiropractors, physical therapists, and imaging centers in the Peoria area accept letters of protection. This allows you to get the treatment you need without paying out of pocket, which is critical for documenting the full extent of your car accident injuries.

The downside of LOPs is that providers often charge their full, undiscounted rates, and these amounts come directly from your settlement. Your attorney should carefully manage medical liens to ensure they do not consume an unreasonable portion of your recovery.

What If the At-Fault Driver Has No Insurance?

Unfortunately, a significant percentage of Illinois drivers are uninsured. If the at-fault driver has no insurance, you may be able to file a claim under your own uninsured motorist (UM) coverage. Illinois law requires insurance companies to offer UM coverage, and it can be a financial lifeline when the other driver cannot pay.

If the at-fault driver has insurance but their limits are not enough to cover your damages, your underinsured motorist (UIM) coverage can make up the difference. These coverages are important to understand from the very first steps after your accident.

Protecting Your Right to Full Compensation

Insurance companies — both yours and the at-fault driver’s — are businesses focused on minimizing payouts. They may pressure you to settle quickly, before you understand the full extent of your injuries and future medical needs. Accepting an early settlement can leave you paying for ongoing treatment out of your own pocket.

An attorney helps you calculate the true value of your medical expenses, including anticipated future treatment, and ensures that any settlement or verdict fully accounts for these costs. Learn more about how car accident case values are determined.

If you are dealing with mounting medical bills after a car accident in the Peoria area, contact Parker & Parker Attorneys at Law for a free consultation. We will help you understand your options and develop a plan to get your bills paid while pursuing full compensation from the responsible party.

Frequently Asked Questions

Should I use my health insurance for car accident injuries even if the other driver was at fault?

Yes, absolutely. Using your health insurance keeps your bills manageable during the claims process, gives you access to your existing doctors, and often results in lower overall medical costs due to negotiated insurance rates. Your attorney can handle any subrogation claims from your health insurer when your case resolves.

What if I cannot afford my health insurance deductible after a car accident?

Your MedPay coverage (if you have it) can help cover deductibles and copays. Additionally, your attorney may be able to arrange treatment under a letter of protection so you can receive care without upfront costs. Many medical providers in the Peoria area work with accident victims on payment arrangements.

Can the at-fault driver’s insurance company pay my medical bills directly as they come in?

This is extremely rare. Liability insurance typically pays in a lump sum at the conclusion of the claim, not on a rolling basis. The insurance company needs to evaluate the full extent of your damages before making payment, which is why having other payment sources (health insurance, MedPay, LOPs) during the claims process is so important.

Dealing with injuries after a car crash can feel overwhelming. Our experienced Peoria personal injury attorneys can guide you through every step of the legal process.

Need a lawyer? This article is part of our Peoria Car Accident Lawyer practice area. Call Parker & Parker at 309-673-0069 for a free consultation.