Illinois Auto Insurance Basics


Car insurance can be a confusing issue, particularly in light of the fact that different states have different requirements. By understanding the requirements for Illinois, you will be better equipped to shop insurance companies for the best rates. This article will cover auto insurance basics, including the specific coverage amounts that are a must in this state. This important information will equip you to search for the lowest possible rates on the right auto insurance policy for you.

Bodily Injury Liability

Bodily injury liability covers anyone that is injured by your vehicle. This insurance pays the other person’s medical bills and reimburses them for any wages lost because of their injuries. If the person decides to sue for more damages, some bodily injury liability will also cover pain and suffering up to a particular maximum. While most states require this type of car insurance coverage, they vary in the amount needed. In Illinois, drivers must carry a minimum of $20,000 in bodily injury liability with a $40,000 limit.

Property Damage Liability

Property damage liability covers property that is damaged by your car. In most cases, this will involve the other driver’s car, but it could also entail a fence, house or other structure. Property damage liability can also provide you with legal defense if the party decides to sue you for more damages. This is another category of insurance coverage that is required by most states. In Illinois, the minimum amount of property damage liability required is $15,000. This amount ensures that an accident that causes significant damage to another’s property will not put you into a serious financial situation.

Uninsured Motorist Bodily Injury

Although car insurance is required by law in most states, not all drivers carry a current policy. If this is the driver who hits you, you might be out of luck in getting help to pay for your medical bills and lost wages. Uninsured motorist bodily injury coverage is used in this situation to cover you and your passengers who are injured in an accident. This coverage will pay for costs incurred that would usually be covered by the other driver’s insurance policy. The state of Illinois requires drivers to carry uninsured motorist bodily injury coverage with a minimum of $20,000 and a $40,000 limit.

Understanding the specific requirements in your state can help you shop smart for your insurance policy. While these are the minimum requirements for insurance coverage in Illinois, there are other types of coverage you can choose from as well to protect your vehicle more completely. It is best to start with the minimum required coverage and add to the policy from there to ensure you are only paying for the coverage you really need.