Policies usually call for “immediate” or “prompt” notice or notice “as soon as practicable.” The test adopted by the courts is whether the notice is reasonable under the particular facts and circumstances. The Illinois Supreme Court in Country Mutual Insurance Co. v. Livorsi Marine, Inc., 222 Ill.2d 303, 856 N.E.2d 338, 343, 305 Ill.Dec. 533 (2006), affirmed the applicable notice requirements stating:
A policy condition requiring notice “[a]s soon as practicable” is interpreted to mean “within a reasonable time.” Whether notice has been given within a reasonable time depends on the facts and circumstances of each case. Breaching a policy’s notice clause by failing to give reasonable notice will defeat the right of the insured party to recover under the policy.
So even if an insured driver believes the accident was another party’s fault, the insured driver should still notify his insurance company so that if there is a later claim by the other driver, the insured can then rely on his insurance company to provide a defense and payment for any damages awarded. Furthermore, an insured should notify his insurance company immediately if he is served with a summons so that defense counsel can be appointed to appear and defend. If the insured fails to notify at this point, once again he may lose his coverage.
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