Jane Dotson
Auto insurance is a requirement for vehicle owners in Illinois. The state has specific minimum insurance requirements, and drivers must carry proof of insurance at all times. This proof is also necessary for registering a vehicle with the state. Illinois law sets out the minimum liability coverage, which includes bodily injury and property damage.
| Characteristics | Values |
|---|---|
| Is auto insurance coverage required in Illinois? | Yes |
| What is the minimum amount of Illinois auto insurance coverage? | $25,000/$50,000/$20,000 |
| What does the minimum amount cover? | $25,000 per person, $50,000 total per accident for bodily injury, and $20,000 per accident for damage to another person's property |
| What are the two types of liability coverage required? | Property damage and bodily injury |
| What does property damage liability cover? | Damage to another person's property or vehicle |
| What does bodily injury liability cover? | Bodily harm sustained by other parties |
| What is uninsured motorist coverage? | Covers medical claims that are the fault of another driver who is uninsured or in a hit-and-run |
| What is the minimum coverage for uninsured motorist bodily injury? | $25,000 per person and $50,000 per accident |
| What is underinsured motorist coverage? | Covers personal injuries caused by a driver with inadequate insurance |
| What is the minimum coverage for underinsured motorist bodily injury? | Equal to the amount of uninsured motorist coverage |
What You'll Learn
Minimum liability insurance requirements
Illinois law requires all vehicle owners to have a minimum amount of auto liability insurance. This includes liability coverage for bodily injury (BI) and property damage (PD). The minimum requirements for liability insurance in Illinois are:
Bodily Injury Liability Insurance
Bodily injury liability insurance covers the costs of injury or death to pedestrians, people in another car, or your passengers in an accident caused by you or a member of your family living with you. The minimum requirement for bodily injury liability insurance in Illinois is $25,000 per person per accident and $50,000 total per accident. This means that the insurance will cover up to $25,000 of costs for each person injured in an accident, and up to a total of $50,000 for all injuries caused in the accident.
Property Damage Liability Insurance
Property damage liability insurance covers the cost of damage to another person's car or property, such as fences, buildings, utility poles, signs, and trees, in an accident caused by you or a member of your family living with you. The minimum requirement for property damage liability insurance in Illinois is $20,000 per accident. This means that the insurance will cover up to $20,000 of damage to another person's property in an accident.
It is important to note that the state minimums may not be enough to fully protect you from lawsuits, and you may want to consider buying higher limits of liability insurance. Additionally, while the minimum requirements for liability insurance in Illinois are predefined, you may opt for more coverage to better protect yourself, your financial assets, your vehicle, and your passengers.
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Uninsured motorist coverage
Illinois law requires all vehicle owners to have a minimum amount of auto liability insurance. This includes uninsured motorist coverage, which provides protection for injuries to you and your passengers if you are in an accident caused by a driver without auto insurance. The minimum limit for uninsured motorist coverage in Illinois is $25,000 per person and $50,000 per accident. This means that if you are in an accident with an uninsured driver, your insurance will cover up to $25,000 of medical expenses for each injured person in your vehicle, up to a total of $50,000 for all injuries resulting from the accident.
While the minimum coverage limits are $25,000 per person and $50,000 per accident, it is advisable to purchase higher limits. This additional coverage will provide greater financial protection in the event of a serious accident with an uninsured driver. For example, if your injuries result in extensive medical bills exceeding the minimum coverage, higher limits can help ensure you are not left with overwhelming out-of-pocket expenses.
In Illinois, underinsured motorist coverage is included when you purchase higher limits of uninsured motorist coverage. Underinsured motorist coverage comes into effect when the at-fault driver has the legal minimum coverage but it is insufficient to cover the full extent of the injured person's damages. This type of coverage ensures that your insurance company will cover the expenses that exceed the limits of the other driver's policy.
Uninsured motorist property damage coverage is also available, although it is purchased less frequently. This type of coverage pays for damage to your vehicle caused by an identified, at-fault, uninsured driver. If you do not have collision coverage, this coverage is typically subject to a deductible.
It is important to note that there are specific rules and time limits associated with filing a claim under your uninsured motorist coverage. In Illinois, you must bring a claim within a certain period after the accident, as outlined in your insurance policy. The Illinois Supreme Court has ruled that these policy-specific time limits take precedence over the state statute of limitations for filing an uninsured motorist lawsuit.
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Underinsured motorist coverage
Illinois law requires all vehicle owners to have a minimum amount of auto liability insurance. The minimum amount of Illinois auto insurance coverage is $25,000 per person, with a total maximum of $50,000 per incident, and up to $20,000 for damage to another person's property. This liability coverage is split into two types: property damage and bodily injury.
For example, let's say you have UIM coverage with limits of $50,000 per person and $100,000 per accident. If you are in an accident caused by another driver and your total expenses amount to $75,000, but the at-fault driver only has liability limits of $50,000, your UIM coverage will kick in. It will pay the difference between your UIM limit and the at-fault driver's liability limit, up to your UIM limit. In this case, your UIM coverage would pay $25,000, ensuring that your expenses are fully covered.
It is important to note that underinsured motorist coverage only applies when the at-fault driver's insurance is insufficient to cover your expenses. If their liability limits are equal to or higher than your UIM limits, your underinsured motorist coverage would not be applicable in that situation.
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Collision coverage
The cost of collision coverage can vary depending on factors such as the value of your vehicle, the deductible you choose, and your accident risk. When deciding whether to purchase collision coverage, consider the value of your vehicle as collision coverage will never pay out more than its value. If you have an old vehicle with high mileage, the payout may not be worth the cost of the insurance. On the other hand, if you have a new or luxury vehicle with expensive parts, collision coverage can provide valuable protection.
Another factor to consider is the deductible. The maximum payout for a collision claim is the current value of your car minus your deductible and insurance premium. For example, if you pay a premium of $200 every six months and choose a $1,000 deductible, the coverage on a $4,000 vehicle will only pay out a maximum of $2,800. In this case, purchasing collision insurance may not be beneficial.
Finally, evaluating your driving history can help you assess the likelihood of making a collision claim in the future. If you drive frequently or have been involved in multiple accidents, you may want to consider collision coverage for added peace of mind. While it is not required by law, collision coverage can provide financial protection and help you avoid significant expenses in the event of an accident.
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Comprehensive coverage
The amount that your insurance will pay out for covered damage depends on the coverage limit and deductible. Your deductible is the amount you must pay out of pocket before your auto insurance kicks in. For instance, if you have a $500 deductible and get into an accident that causes $2,000 worth of damage, your insurance will only pay $1,500.
The limit for comprehensive physical damage coverage is generally the cash value of your vehicle, accounting for its depreciation over time.
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Frequently asked questions
Yes, Illinois law requires a minimum amount of liability coverage.
The minimum liability coverage in Illinois is $25,000 in bodily injury coverage for each injured person and $50,000 in bodily injury coverage total per accident. Additionally, there must be $20,000 in property damage coverage per accident.
Driving without insurance in Illinois is against the law and can result in penalties such as fines, license suspension, and having your vehicle impounded. If you are involved in an accident without insurance, you will be responsible for paying for any damages and medical costs out of pocket.
