Can You Sue Your Own Insurance Company After a Personal Injury?

 Posted on November 03, 2026 in Personal Injury

Suing your own insurance company after an injury is possible in Illinois, but only in certain situations. Your policy is a contract. If your insurer refuses to pay a claim the policy covers, you may be able to hold it to that contract. For some types of coverage, though, a dispute goes to arbitration rather than a courtroom.

Most injury claims after something like a car accident are made against the at-fault driver’s insurer, not your own. Your own policy comes into play in specific cases, such as when the other driver has little or no insurance. Health and other insurance that you pay for are also contractually obligated to honor their terms.

If your insurer is refusing to pay in 2026, a Schaumburg, IL personal injury attorney at Newland & Newland, LLP can help you understand your options.

When Would You Make an Injury Claim With Your Own Insurance Company?

Your own policy may cover you after an accident in a few situations. These include:

• An at-fault driver had no insurance, or their coverage isn’t enough to pay for your injuries.
• You were hit by a driver who fled the scene.
• Your insurance policy specifies medical treatment coverage.

Illinois auto policies must include uninsured motorist coverage under 215 ILCS 5/143a. This coverage protects you if you’re injured by an uninsured driver or a hit-and-run driver. Underinsured motorist coverage works in a similar way when the other driver’s policy limits are too low. In these claims, your insurer steps into the at-fault driver’s shoes, and you still have to prove fault and damages.

Auto coverage isn’t the only policy that may pay after an injury. Health insurance can cover treatment after a fall, a dog bite, or a sports injury. A disability policy may replace part of your income while you can’t work.

Why Might Your Insurance Company Refuse to Pay Your Injury Claim?

Your insurer has a financial incentive to pay as little as possible, even when you’re its own customer. It can dispute how you were hurt or argue your injuries came from a condition you already had. It may also claim the policy doesn’t cover your situation.

Delays are also common. Insurers sometimes ask for more records, schedule more reviews, or stop responding.

Your policy also places duties on you. It may require you to report the injury promptly, cooperate with the investigation, and provide medical records. Missing one of these duties gives the insurer a reason to deny the claim.

Can You Take Your Own Insurer to Court in Illinois?

You can often sue your insurer for breach of contract if it refuses to pay what the policy owes you. Uninsured or underinsured motorist coverage, on the other hand, usually goes to arbitration. An arbitrator, or a panel of three arbitrators, hears the case instead of a judge or jury. Check your policy to see how it handles underinsured motorist disputes.

Coverage through your employer, such as group health or disability insurance, is often governed by a federal law called ERISA. These plans typically require an internal appeal before you can sue, and ERISA may limit what you can recover. Policies also set their own deadlines, so read them closely.

What if Your Insurance Company Is Acting Unreasonably After You File an Injury Claim in Illinois?

Illinois law allows a court to add extra compensation to your award if it finds the insurer’s conduct was "vexatious and unreasonable." This might include your reasonable attorney fees, other costs, and an additional penalty amount. The penalty doesn’t apply to employer plans governed by ERISA.

To protect a possible claim, keep a record of every call, letter, and email with your insurer. Write down who you spoke to and what they said. Save copies of everything you send, including medical bills and records. If your claim is denied, ask the insurer to explain the reason in writing and point to the policy language it’s relying on.

Call a Palatine, IL Personal Injury Attorney Today

You shouldn’t have to take the hit when your insurance is being unreasonable about making a payout they're contractually obligated to cover.

Our Schaumburg, IL personal injury lawyers are local attorneys who value the communities and clients we serve. Our team has many decades of combined experience and has recovered millions of dollars in successful verdicts for injured clients.

We offer free consultations. Call Newland & Newland, LLP at 847-797-8000 today.