Illinois Car Insurance Minimums
If you live in the state of Illinois and own a vehicle, you need to have the correct insurance in order to remain legal on the roadways. Bodily insurance and property damage liability coverage, along with uninsured motorist coverage, are mandatory in Illinois. Here, we want to discuss these types of coverages as well as other forms of insurance you may want to consider to completely protect yourself and your loved ones.
What Are the Minimum Car Insurance Requirements in Illinois?
In Illinois, drivers must carry liability insurance to cover losses caused to others in an accident. The state’s minimum insurance requirements are:
- Bodily injury liability: $25,000 per person and $50,000 per accident for injuries to others.
- Property damage liability: $20,000 per accident for damage to another person’s property.
Liability insurance is crucial because it helps cover expenses like medical bills and vehicle repairs for other drivers involved in the accident.
Is Uninsured and Underinsured Motorist Coverage Required?
Yes, Illinois requires drivers to carry uninsured motorist coverage (UM). This coverage helps protect you if you are involved in a collision with a driver without insurance of their own. The minimum UM coverage required in Illinois mirrors the bodily injury liability limits:
- $25,000 per person.
- $50,000 per accident.
While underinsured motorist coverage (UIM) is not required, it is highly recommended. UIM helps cover costs when the at-fault driver’s insurance is insufficient to pay for your injuries or damages. Both UM and UIM coverage provide vital financial protection against drivers who lack adequate insurance.
Benefits of Additional Coverage
In addition to the mandatory liability and uninsured motorist coverage, you may want to consider adding other types of car insurance to your policy.
Collision Coverage
Collision coverage helps pay for repairs to your vehicle if you are involved in an accident, regardless of who is at fault. This coverage can be invaluable in cases of significant vehicle damage. Without it, you may have to pay out-of-pocket for repairs or replacement if your car is totaled in a crash.
Comprehensive Coverage
Comprehensive coverage protects your vehicle from non-collision-related damage, such as theft, intentional actions, weather-related incidents, or hitting an animal. This type of coverage is particularly important if you want to safeguard your vehicle against a variety of risks not directly related to driving.
Medical Payments Coverage
Medical payments coverage (MedPay) is optional in Illinois but provides essential coverage for medical bills resulting from a collision, regardless of who is at fault. This can help pay for expenses like ambulance fees, hospital visits, and follow-up medical care, reducing the financial burden of an accident.
Personal Injury Protection (PIP)
Although not required in Illinois, personal injury protection (PIP) covers medical costs, lost income, and other related costs if you or your passengers are injured in an accident. PIP offers more extensive coverage than MedPay, making it a valuable addition to your insurance policy if you want broader protection.
Why Consider Higher Liability Limits?
While Illinois mandates minimum coverage, it is often wise to purchase higher liability limits. The costs of medical care and vehicle repairs can easily exceed the state-mandated minimums in a serious accident. If your insurance policy does not cover the full amount of damages, you could be personally responsible for the difference.
For example, if you are involved in an accident that results in $100,000 worth of medical bills and you only have the $50,000 per accident bodily injury limit, you could be on the hook for the remaining $50,000. Increasing your liability limits offers peace of mind and better financial protection.
What Happens if You Do Not Carry the Required Insurance?
Driving without the required car insurance in Illinois can result in severe penalties. If you are caught without insurance, you could face fines, license suspension, and the impoundment of your vehicle. Additionally, if you cause an accident while uninsured, you will be personally responsible for covering all damages, which can lead to financial devastation.
City of Chicago Insurance Considerations
While Illinois mandates state-wide insurance minimums, the city of Chicago has additional considerations that drivers should be aware of. Chicago is densely populated, and accidents can be more frequent due to traffic congestion. Because of this, drivers in Chicago may benefit from higher coverage limits and additional types of insurance, such as gap coverage for leased cars.
Having the right car insurance is essential to protecting yourself and others on Illinois roadways. While the state requires a minimum level of coverage, opting for higher limits and additional coverage types can provide much-needed protection in the event of an accident. Be sure to review your policy and discuss your options with an insurance provider to ensure you are adequately covered.