Illinois Auto Insurance: Understanding The State's Minimum Requirements

Illinois state law requires all vehicle owners to have a minimum amount of auto liability insurance. The minimum coverage auto insurance liability limits are 25/50/20. This means drivers must have liability coverage of $25,000 for bodily injury per person, $50,000 per accident, and $20,000 for property damage per accident. They also need uninsured/underinsured motorist coverage matching the bodily injury limits.

Liability coverage

Minimum Requirements for Liability Coverage in Illinois:

• Bodily Injury Liability Coverage: In Illinois, the minimum requirement for bodily injury liability coverage is $25,000 per person and $50,000 per accident. This means that if you are at fault in an accident, your insurance will cover the medical bills and, in some cases, funeral expenses of the other party, up to these limits.
• Property Damage Liability Coverage: The state mandates a minimum of $20,000 per accident for property damage liability coverage. This coverage will pay for any damage you cause to another person's property, such as their vehicle, fences, buildings, or other structures.
• Uninsured Motorist Bodily Injury Coverage: Illinois also requires drivers to have uninsured motorist bodily injury coverage. The minimum limits are $25,000 per person and $50,000 per accident. This coverage protects you if you are in an accident with an uninsured driver and covers your injuries up to these limits.

Understanding the Importance of Liability Coverage:

Considerations for Liability Coverage:

While the state minimums are the legal requirements, it's important to consider purchasing higher limits. The minimum coverage may not be sufficient to cover all expenses in a serious accident. If the medical bills or property damage exceed your policy limits, you will be responsible for paying the difference out of pocket. Therefore, it's recommended to evaluate your financial situation and choose liability coverage limits that provide adequate protection.

Additionally, keep in mind that liability coverage only pays for the other party's expenses and does not cover any damage to your own vehicle or injuries you sustain. If you want protection for yourself and your car, you will need to consider adding optional coverages, such as collision and comprehensive insurance, to your policy.

Bodily injury liability

In Illinois, the minimum coverage for bodily injury liability insurance is $25,000 per person and $50,000 per accident. This means that if you are found to be at fault in a car accident, your insurance will cover the medical expenses of others, up to $25,000 per person, and $50,000 in total per accident. This coverage also includes the other driver's loss of income and your legal fees if you are sued due to the accident.

The minimum coverage required by law in Illinois is set at $25,000 per person and $50,000 per accident. However, it is important to consider that medical expenses can quickly exceed these limits, especially in accidents with multiple injuries. As such, it is recommended to carry more coverage than the state-mandated minimum to ensure you are fully protected.

The cost of bodily injury liability insurance varies depending on factors such as your driving history, the coverage limits you choose, and the type of car you drive. The national average cost for liability insurance, which includes both bodily injury and property damage coverage, is $650.35 per year.

In Illinois, liability insurance policies automatically include uninsured motorist coverage at the legal minimum requirements. This means that if you are in an accident with an uninsured at-fault driver, your insurance will cover your accident-related losses.

Property damage liability

In Illinois, the minimum property damage liability coverage required by law is $20,000 per accident. This means that if you cause an accident and the damage to another person's property is less than $20,000, your insurance company will cover the full cost of the repairs. However, if the damage exceeds $20,000, you will be responsible for paying the remaining amount out of pocket.

It is important to note that property damage liability insurance does not cover damage to your own vehicle. If you want insurance for damage to or theft of your car, you will need to purchase comprehensive and collision coverage.

While the state minimum coverage is $20,000, it is recommended that you buy higher limits to fully protect yourself from lawsuits. The average cost of damage from a crash involving only property damage is $5,700 per vehicle, but this can quickly escalate in major crashes, especially if you collide with a newer, expensive vehicle.

In addition to property damage liability insurance, Illinois also requires drivers to have bodily injury liability coverage of at least $25,000 per person and $50,000 per accident. These coverages are essential to meet the state's requirements and ensure you are legally insured to drive.

Uninsured motorist coverage

Illinois law requires drivers to carry uninsured motorist coverage as part of their auto insurance. Uninsured motorist coverage is a type of insurance that pays for medical expenses and other costs if you or your passengers are injured in an accident caused by a driver without insurance or with insufficient insurance. This coverage typically includes uninsured motorist bodily injury (UMBI) and may also include uninsured motorist property damage (UMPD).

In Illinois, the minimum coverage limits for UMBI are $25,000 per person and $50,000 per accident. These limits match the state's minimum requirements for bodily injury liability coverage. While UMPD is not required in Illinois, it can be purchased as optional coverage. This coverage pays for damage to your vehicle caused by an uninsured driver.

It's worth noting that Illinois also requires underinsured motorist coverage. This coverage kicks in when the at-fault driver's insurance is insufficient to cover all your medical bills and other expenses. Underinsured motorist coverage is typically offered alongside uninsured motorist coverage and provides valuable protection in the event of an accident.

Collision and comprehensive coverage

When you purchase an auto insurance policy, you and your agent determine the deductible, which is the amount you must pay out of pocket in the event of an accident. For example, if your deductible is $500 and you are in an accident that causes $5,000 in damage to your vehicle, you pay $500, and the insurance company pays the remaining $4,500. Your insurance policy will only cover repairs up to the actual cash value of your vehicle before the accident. If the damage exceeds the value of your car, the insurance company will declare it a total loss and pay you the cash value of your car to help you replace it.

While collision and comprehensive coverage are not required by law in Illinois, they can provide valuable financial protection in the event of an accident or damage to your vehicle. It is important to consider the value of your vehicle, the deductible, and your accident risk when deciding whether to purchase this coverage.

Frequently asked questions