Auto Insurance: Beyond the State Minimum

Illinois requires drivers to carry minimum liability limits of 25/50/20 — $25,000 per person, $50,000 per accident in bodily injury liability, and $20,000 in property damage liability. These numbers were set decades ago and have not kept pace with the reality of modern accident costs. A single hospitalization after a serious crash can exceed $25,000 before the victim leaves the ICU.

What the Minimums Actually Cover

Liability coverage pays for other people's injuries and property damage when you are at fault. The minimums mean: if you injure one person and their medical bills reach $80,000, your policy pays $25,000. The remaining $55,000 is your personal responsibility. In Illinois, judgment creditors can pursue your wages, bank accounts, and non-exempt assets.

The property damage minimum of $20,000 sounds more substantial but covers only the other vehicle. New vehicles regularly cost $35,000 to $60,000 or more. A single collision with a newer car can exhaust that limit entirely.

Recommended Coverage Levels

Most insurance professionals recommend at minimum 100/300/100 — $100,000 per person, $300,000 per accident in bodily injury, and $100,000 in property damage. For those with significant assets, 250/500/100 paired with a personal umbrella policy provides much more meaningful protection. The premium difference between minimum and 100/300/100 is often only $200 to $400 per year.

Uninsured and Underinsured Motorist Coverage

Illinois requires insurers to offer uninsured motorist (UM) coverage, but drivers can reject it in writing. Roughly 12% of Illinois drivers are uninsured — one of the higher rates in the Midwest. Underinsured motorist (UIM) coverage protects you when the at-fault driver has insurance but their limits are insufficient for your injuries. Both coverages are inexpensive relative to their value and should be carried at limits matching your liability limits.

Collision and Comprehensive Coverage

Collision covers damage to your vehicle from an accident regardless of fault. Comprehensive covers theft, weather damage, animal strikes, and other non-collision events. Whether these coverages make financial sense depends on the vehicle's value — carrying a $500 deductible on a $4,000 vehicle may not pencil out. For newer or financed vehicles, both are typically required by lenders and worthwhile to maintain.

Medical Payments Coverage

Medical payments (MedPay) coverage pays for you and your passengers' medical expenses regardless of fault — a no-fault medical benefit within your auto policy. With high-deductible health plans increasingly common, a modest MedPay limit of $5,000 to $10,000 can bridge the gap between an accident and your health insurance kicks in.