Jane Dotson
Illinois requires all vehicle owners to have a minimum amount of auto liability insurance. This includes bodily injury liability insurance coverage of at least $25,000 per person and $50,000 per accident, as well as property damage liability insurance coverage of at least $20,000 per accident. Uninsured motorist coverage is also mandatory and helps pay for damages due to bodily injury caused by a hit-and-run driver or a driver without insurance.
| Characteristics | Values |
|---|---|
| Bodily Injury Liability Insurance Coverage Per Person | $25,000 |
| Bodily Injury Liability Insurance Coverage Per Accident | $50,000 |
| Property Damage Liability Insurance Coverage Per Accident | $20,000 |
| Uninsured Motorist Bodily Injury Coverage Per Person | $25,000 |
| Uninsured Motorist Bodily Injury Coverage Per Accident | $50,000 |
| Underinsured Motorist Bodily Injury Coverage Per Person | $20,000 |
| Underinsured Motorist Bodily Injury Coverage Per Accident | $40,000 |
What You'll Learn
Bodily injury liability insurance
In Illinois, liability coverage is a requirement for all vehicle owners. This coverage is often split into two separate coverages: Bodily Injury (BI) and Property Damage (PD).
BI insurance covers the costs due to injury or death sustained by a pedestrian or a person in another car. It may also cover the injury costs of your passengers, as long as they are not members of your household. The state of Illinois requires BI limits of at least $25,000 per person per accident and $50,000 total per accident.
It is important to note that the state minimums may not be enough to fully protect you from lawsuits. You can purchase higher limits to pay for claims that exceed the minimum amounts. This is advisable if you want to ensure you are fully protected in the event of a serious accident.
Additionally, BI insurance can also protect you in the event of a hit-and-run or an accident caused by an uninsured driver. In Illinois, the minimum limits for uninsured motorist bodily injury coverage are the same as the BI coverage minimums: $25,000 per person and $50,000 per accident. You can also purchase higher limits for this type of coverage if desired.
Furthermore, BI insurance can provide coverage in the event that you are in an accident with an underinsured driver. Underinsured motorist coverage pays the difference between your policy limits and the liability limits of the at-fault driver, if their limits are lower. This type of coverage is required in Illinois if you purchase higher limits of uninsured motorist coverage.
In summary, BI liability coverage is an essential protection for Illinois drivers, providing financial security in the event of an accident causing injury or death to another person. It is important to review your coverage limits regularly and consider purchasing higher limits to ensure adequate protection.
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Property damage liability insurance
When considering how much property damage liability coverage to purchase, it is essential to remember that the state's minimum requirements might not be sufficient to cover all damages in an accident. As of May 2019, the average price of a new car was $36,718. If a policyholder with the state minimum of $20,000 in property damage liability coverage causes an accident totalling a new car valued at $30,000, they would be responsible for the remaining $10,000. If unable to pay this amount out of pocket, the affected party could sue for the difference, putting the policyholder's assets and savings at risk. Therefore, it is generally recommended to purchase the maximum amount of property damage coverage one can afford. Ideally, one should aim for at least $100,000 per person, $300,000 per accident, and $50,000 of property damage liability coverage.
The cost of property damage liability coverage depends on various factors, including driving history, age, and the state one lives in. Additionally, different insurance companies will offer varying rates. Using an online auto insurance calculator or comparing free quotes can help determine the expected costs. While purchasing higher coverage amounts will result in a higher insurance premium, it provides much-needed peace of mind and financial protection in the event of a costly accident.
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Uninsured motorist coverage
Illinois law requires drivers to have 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 provide coverage for injuries to you and your passengers. 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 liability coverage required in Illinois.
In addition to the required minimum of uninsured motorist coverage, Illinois drivers have the option to purchase higher limits of coverage. For drivers who choose to do so, underinsured motorist (UIM) coverage will automatically be included. UIM coverage comes into effect when the at-fault driver has the legal minimum coverage but it is insufficient to cover the injured person's damages.
When purchasing auto insurance in Illinois, it is important to consider your own financial situation and the potential costs of an accident. While the state minimums for uninsured and underinsured motorist coverage may be sufficient for some, others may benefit from higher coverage limits. By choosing higher coverage limits, you can increase your financial protection in the event of an accident with an uninsured or underinsured driver.
To make an informed decision about your auto insurance coverage, it is recommended to consult a reliable insurance agent or company. They can help you understand the different types of coverage available, the associated costs, and the level of protection that best suits your needs.
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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 carrier would pay the additional amount needed to cover your expenses after exhausting the at-fault driver's policy limits. This coverage provides valuable protection in the event that you are involved in a significant accident with an underinsured driver, as the minimum amounts required by law may not be sufficient to cover the cost of injuries and damages incurred.
To determine the amount of underinsured motorist coverage you need, it is important to review your insurance policy and understand the limits of your coverage. The coverage declarations page of your policy should indicate how much underinsured motorist coverage you have. Consulting with a knowledgeable attorney or insurance professional can also help you navigate the complexities of insurance claims and ensure that you receive the full compensation you are entitled to.
In summary, underinsured motorist coverage is a crucial aspect of auto insurance in Illinois. It provides financial protection and peace of mind by ensuring that you can receive fair compensation for your injuries and damages, even when the at-fault driver's insurance coverage falls short. By understanding your coverage limits and seeking expert guidance when needed, you can make informed decisions about your insurance choices and be better prepared in the event of an accident.
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Collision insurance coverage
Collision insurance covers the cost of repairing or replacing your vehicle after a collision with another vehicle or object, such as a tree or guardrail. This coverage is applicable regardless of who is at fault in the accident. If you are found at fault, collision insurance can save you from paying out-of-pocket for repairs or a replacement vehicle. In the case of a single-vehicle accident, collision coverage can be especially valuable as your liability coverage will not apply.
When deciding whether to opt for collision coverage, consider the value of your vehicle. If your vehicle is new, expensive, or leased/financed, collision coverage is recommended. Collision insurance can help protect your investment by covering the cost of repairs or replacement in the event of an accident. Additionally, if you cannot afford to pay for repairs or a new vehicle out of pocket, collision coverage can provide peace of mind.
However, if your vehicle is older and has a low market value, collision coverage may not be worth the added expense. In this case, you may choose to take the risk of paying for repairs or a replacement vehicle yourself. It's important to weigh the potential costs of repairs against the monthly premium you would pay for collision coverage.
In summary, collision insurance coverage can provide valuable financial protection in the event of a collision, particularly for those with newer, more expensive, or leased/financed vehicles. While it is not required by Illinois state law, it can offer peace of mind and help protect your investment. When deciding whether to opt for collision coverage, carefully consider your vehicle's value and your ability to pay for repairs or a replacement out of pocket.
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Frequently asked questions
The minimum amount of auto insurance coverage in Illinois is $25,000 per person for bodily injury liability, $50,000 per accident for bodily injury liability, and $20,000 per accident for property damage liability.
It is recommended that you carry more coverage than the minimum amount required by state law. Higher policy limits may cost more in premiums, but they could save you from financial ruin if you are the at-fault driver in a serious car accident.
In addition to the mandatory liability coverage, you can also get collision coverage, comprehensive coverage, medical payments coverage, and uninsured motorist property damage coverage.
