Umbrella Insurance After an Illinois Car Accident

When you are badly hurt in a car accident, one big worry is simple: will there be enough insurance to cover everything? Hospital bills, lost work, future care, and pain can add up to far more than you ever expected.

Maybe the other driver’s insurance company tells you, “The policy limits are $100,000 per person and $300,000 per accident.” You might assume that is the full amount of money available. Many people do.

But in some serious cases, that is not the whole story. There may be extra coverage called an umbrella policy that the insurance company does not mention unless someone knows how to ask. This article explains what umbrella insurance is, why it matters after an Illinois car accident, and how an experienced lawyer can help you find it.

What Is Umbrella Insurance?

Every auto policy has “limits.” That is the maximum amount the insurance company will pay on a claim. For example, a policy might have limits of $100,000 per person and $300,000 per accident. If your total damages are $30,000, that limit is plenty. If your damages are $200,000, that basic policy is not enough.

Umbrella insurance is extra liability coverage that sits on top of the regular auto policy. It does not replace the basic coverage. It kicks in when the regular policy is used up in a major case.

Drivers who have a higher net worth, support a family, or spend a lot of time on the road (for work or long commutes) are often advised to buy an umbrella policy. It can protect them if they cause a serious crash that leads to big claims, including possible wrongful death claims.

It is important to understand that umbrella coverage is a separate policy. It often has a different policy number and may even be handled by a different unit inside the same insurance company.

Why Would an Insurance Company Hide Umbrella Coverage?

Insurance companies are businesses. Their goal is to pay as little as they legally can on claims. Adjusters handle many files at once. They are trained, they use scripts, and they know the rules very well.

Illinois law requires insurance companies to disclose the limits on the basic liability policy when a claim is made the right way. But the law does not require them to volunteer information about any extra umbrella or excess policies in the same way.

Adjusters also know that most injured people have never heard the term “umbrella coverage.” Many cannot afford a lawyer or are unsure they need one. Some adjusters even hint that hiring a lawyer will “only slow things down” or “just take part of your money.”

If you do not know that umbrella coverage exists, you probably will not ask about it. If you do not ask, the adjuster may stay quiet. You end up negotiating only with the basic policy limits, even if there is another big layer of coverage sitting in the background.

What Happened in the Kim v. State Farm Case?

A recent Illinois case shows how serious this can be. In Kim v. State Farm Mutual Automobile Insurance Co., an injured person’s lawyer asked State Farm about the policy limits after a crash. State Farm said the liability coverage was $100,000 per person and $300,000 per accident. That sounded like the full amount.

Only later, after the lawyer pushed hard and even threatened court sanctions, did State Farm admit there was also a one-million-dollar umbrella policy on top of the basic coverage. That meant there was far more money available than the company first suggested.

The Illinois Appellate Court explained that, under the Illinois Insurance Code, an insurance company must disclose the limits of the basic liability policy if the injured person makes a proper demand. But the court also made clear that, under current law, the company is not required in the same way to disclose extra coverage in an umbrella or excess policy. They must tell you about the primary layer. They do not have to volunteer the rest.

That is a huge difference if you have life-changing injuries from a serious car accident.

How Hidden Umbrella Coverage Can Change Your Case

Imagine this simple example. You are hit by another driver and suffer serious injuries. Your medical bills, lost wages, and other damages total $500,000. The other driver’s insurer tells you the limits are $100,000 per person, and you believe that is all that exists.

You might feel forced to accept $100,000, even though your losses are much higher. You sign a settlement release. Months later, you learn the driver actually had a one-million-dollar umbrella policy. But the case is closed. The release likely cuts off your right to ever ask for that extra money.

This can be even more painful when the crash involves a death, a spinal cord injury, brain damage, or other permanent harm. In those cases, fair compensation can easily go well beyond the basic auto limits. Extra coverage may be the only way to pay for lifelong care, lost income, and the human loss your family has suffered.

Does This Really Happen in Real Cases?

Yes. The Kim case is not the only example. In another real-world crash with multiple wrongful deaths and serious injuries, a major insurance company at first acted as if there was no coverage at all for one of the people involved. Only after lawyers pushed over and over for specific information about any umbrella or excess policies did the company finally admit there was an extra one-million-dollar layer of coverage.

That kind of delay is not an accident. It is a tactic. The longer an injured person or grieving family spends believing there is little or no coverage, the more pressure they feel to accept a small settlement or give up.

Can I Just Ask the Adjuster About Umbrella Insurance?

You can ask, and you should. The problem is how you ask, and what the law actually forces the company to say.

Many self-represented people say something like, “What are the policy limits?” The adjuster may give the limits on the basic auto policy but not mention an umbrella. From their point of view, they answered the question. They know you probably do not even realize there is a different kind of policy to ask about.

An experienced Illinois injury lawyer will send a detailed written demand that asks for all policies that might apply, including umbrella and excess coverage, and asks for the exact limits on each. If the company refuses to answer or gives a half-answer, a lawyer can use Illinois law, court rules, and even the threat of sanctions to push for full disclosure.

In serious cases, filing a lawsuit and using formal discovery tools may be the only way to force an insurance company to admit what coverage is out there.

How a Lawyer Looks for All Available Insurance

Good personal injury lawyers know that finding insurance coverage is one of the most important early steps in a serious case. Before they talk numbers, they want to know how many layers of coverage exist and where they might be.

That search can include:

• The at-fault driver’s auto policy
• Any umbrella or excess policies in the driver’s name
• Policies held by an employer, if the driver was on the job
• Household or family policies that might cover the driver
• Your own underinsured motorist coverage, if the other driver’s coverage is not enough

This is one reason the best settlements often come after a case has been fully prepared, not rushed. Careful lawyers treat every serious case as if it might go to trial. They build the evidence, work with experts when needed, and make sure every possible source of recovery is explored before talking about a final number.

Trying to handle a major claim alone, without knowing the rules, is like trying to take out your own appendix. It is risky, painful, and can end very badly.

Frequently Asked Questions About Umbrella Insurance in Car Accident Cases

What is an umbrella policy in a car accident case?

An umbrella policy is extra liability insurance that sits on top of regular auto coverage. It pays only after the basic policy is used up. For example, if the basic policy pays its full $100,000 limit and your damages are higher, an umbrella policy might provide another $500,000 or $1,000,000 on top of that, if one exists and applies.

Is an insurance company in Illinois required to tell me about umbrella coverage?

Under current Illinois law, when a proper demand is made, an insurance company must disclose the limits of the basic auto liability policy. But they are not required in the same way to volunteer information about separate umbrella or excess policies. That is why the exact wording of the request and the pressure behind it can matter so much.

How can my lawyer find out if there is an umbrella policy?

A lawyer can send a written demand that clearly asks for all policies and all layers of coverage, not just the basic auto policy. If the response is incomplete, the lawyer can follow up, involve supervisors, or file a lawsuit and use discovery tools such as interrogatories, document requests, and sworn testimony to force complete answers.

What if I already settled before I knew about an umbrella policy?

Once you sign a settlement release, it is very hard, and often impossible, to go back and ask for more money later, even if you later learn there was extra coverage. There are a few rare exceptions, but they are limited. This is one reason you should be very cautious about signing anything before you understand all available insurance.

Does my own insurance policy include umbrella or extra coverage?

Some people buy personal umbrella policies that sit on top of their auto and homeowner’s coverage. Others buy higher limits or strong underinsured motorist coverage on their auto policy. A lawyer can review your own policies and help you understand whether you have extra protection that might help if the at-fault driver is underinsured.

When should I call a lawyer about policy limits after a crash?

You should talk with a lawyer as soon as you know you have more than very minor injuries, especially if you needed ER care, imaging, or follow-up treatment. The more serious the case, the more important it is to find all available insurance early. A consultation with a personal injury lawyer can help you understand whether there may be hidden coverage and what to do next.