Illinois Auto Insurance: Understanding The Minimum Requirements

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 for bodily injury, with a total maximum of $50,000 per incident, and $20,000 for damage to another person's property. Uninsured motorist coverage pays medical claims that are the fault of the other driver when they either have no insurance or in the case of a hit-and-run.

Liability coverage

The two components of liability insurance are bodily injury liability and property damage liability.

Bodily Injury Liability

Bodily injury liability covers the medical treatment and other expenses for people injured in an accident that you are found to be at fault for. This includes others' medical expenses, pain and suffering, and legal costs for related lawsuits filed against you. Illinois law requires bodily injury limits of at least $25,000 per person per accident and $50,000 total per accident.

Property Damage Liability

The property damage part of liability insurance covers the costs to repair damage to someone else's property caused by an accident that you are found at fault for. This includes damage to other cars, as well as damage to property such as fences, buildings, utility poles, signs, and trees. Illinois law requires property damage liability limits of at least $20,000 per 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 purchasing higher limits of liability insurance.

Bodily injury liability

In Illinois, liability car insurance coverage is mandatory for all drivers. Liability insurance covers only the other car and/or that car's driver and passengers when you are found at fault for the accident. It does not cover your own costs for personal injuries or property damage.

It is important to note that the state minimums for bodily injury liability insurance may not be sufficient to fully protect you from lawsuits. You may want to consider purchasing higher limits or additional coverage to ensure that you are adequately protected.

Property damage liability

It is important to note that property damage liability insurance does not cover damage to your own vehicle. If you want coverage for your own vehicle's repairs, you will need to purchase additional insurance, such as collision insurance or comprehensive insurance.

Additionally, it is worth noting that Illinois has a fault-based insurance system, meaning the driver who caused the accident is responsible for paying for the other party's damages. This is where property damage liability insurance comes into play, covering the costs of the other person's property damage up to the specified limit.

In summary, property damage liability insurance is a vital aspect of auto insurance in Illinois, providing financial protection and peace of mind in the event of an accident. While the minimum requirement is $20,000, purchasing higher limits can offer more comprehensive coverage and reduce the risk of financial strain in the event of a costly accident.

Uninsured motorist coverage

Illinois requires drivers to carry uninsured motorist coverage. This means that if you are in an accident caused by a driver who does not have auto insurance, uninsured motorist coverage will cover injuries to you and your passengers. This type of insurance also covers drivers colliding with hit-and-run or stolen vehicle drivers.

The minimum amount of uninsured motorist coverage required in Illinois is $25,000 per person and $50,000 per accident. This is also the minimum amount of car insurance required to register a car in Illinois. If you want less uninsured motorist coverage, you must communicate your desire to choose lower coverage in writing, although this is not recommended.

Insurers encourage drivers to get more uninsured motorist coverage, not less. Paying a few extra dollars for extra coverage will seem like a small amount compared to the thousands it may cost in medical bills later. If you choose uninsured motorist coverage in amounts more than the required minimum, underinsured motorist coverage will automatically be included. Underinsured motorist coverage kicks in when the at-fault driver has the legal minimum coverage, but it is not enough to cover the injured person's damages.

Underinsured motorist coverage

For example, if you have $75,000 in underinsured motorist coverage and are involved in an accident with a driver who only has the state minimum insurance of $25,000, your insurance company would pay the additional $25,000 on the underinsured claim after exhausting the at-fault driver's policy. This coverage applies to both bodily injury and property damage claims, although purchasing property damage coverage for underinsured motorist claims is less common.

It is worth noting that when you file an underinsured motorist claim, your insurance company may try to avoid paying or provide a lower amount than what you are owed. Therefore, it is recommended to seek assistance from a personal injury lawyer experienced in handling auto accident claims to ensure you receive the full compensation you deserve.

By including underinsured motorist coverage in your auto insurance policy, you can have peace of mind knowing that you are protected in the event of a crash with a driver who does not have sufficient insurance coverage.

Frequently asked questions