When it comes to car insurance, understanding your coverage limits is crucial for making sure you’re adequately protected in the event of an accident. If you’re driving in Illinois or the Chicago area, knowing what your policy covers and what it doesn’t could save you from facing significant out-of-pocket expenses.
Insure on the Spot at 773-202-5060 can help you understand your coverage options and adjust your limits to provide maximum protection.
What Are Car Insurance Coverage Limits?
Car insurance coverage limits refer to the maximum amount your insurer will pay for a covered claim. These limits are typically divided into three categories: bodily injury per person, bodily injury per accident, and property damage per accident. For instance, a 100/300/100 policy provides up to $100,000 for one person’s injuries, up to $300,000 total for all injuries in a single accident, and up to $100,000 for property damage.
Illinois law requires drivers to carry a minimum of 25/50/20 coverage: $25,000 per person for injuries, $50,000 total for injuries per accident, and $20,000 for property damage. While these limits meet the state’s legal requirements, many drivers opt for higher limits, such as 100/300/100, to protect themselves financially in more serious accidents.
What Is the Minimum Car Insurance Coverage in Illinois?
In Illinois, the minimum legal requirement for liability insurance is 25/50/20. This ensures that drivers can cover basic costs in the event of an accident. However, these limits may not fully protect you in a serious accident. For example, medical bills alone can easily exceed the state’s per-person minimum.
It’s recommended that Illinois drivers consider higher limits, like 100/300/100, especially if you drive in the city or on busy highways. This higher coverage offers much better protection, ensuring you won’t have to pay large out-of-pocket expenses if an accident exceeds your limits.
What Happens If a Car Accident Claim Exceeds Your Insurance Limits?
If you’re involved in an accident where the damages exceed your coverage limits, you will be responsible for the remaining balance. This can lead to significant financial consequences, including potential lawsuits to recover the unpaid amount.
For example, if you carry Illinois’ minimum 25/50/20 coverage and cause an accident with $100,000 in medical costs and $40,000 in property damage, you would be personally liable for any amount exceeding your policy’s limits—leaving you with a $70,000 bill.
To avoid these situations, increasing your coverage limits—such as opting for 100/300/100 or higher—can protect your assets and prevent you from being personally liable for excess damages.
How Do I Choose the Right Car Insurance Coverage Limits?
When selecting your coverage limits, consider these factors:
- State Requirements: Ensure you meet Illinois’ minimum requirements but consider higher limits for better protection.
- Assets and Net Worth: If you own property or have savings, you should choose higher limits to protect those assets from being at risk in an accident.
- Driving Habits: If you drive frequently, especially in busy areas like downtown Chicago, higher coverage limits are essential.
- Budget: While higher coverage may slightly increase your premium, it often provides excellent value by safeguarding you from high out-of-pocket expenses.
By choosing higher limits, such as 100/300/100, you can ensure you’re adequately protected, even in severe accidents. It’s always better to be over-insured than underinsured, particularly when your financial security is on the line.
Frequently Asked Questions About Car Insurance Limits
Q: What does 50k/100k/50k insurance mean?
A: This notation represents liability coverage limits: $50,000 for bodily injury per person, $100,000 total for all injuries per accident, and $50,000 for property damage per accident.
Q: Are my insurance limits per person or per accident?
A: Both. The first number in a split limit represents the per-person limit for injuries, the second number is the total limit for all injuries in an accident, and the third number covers property damage per accident.
Q: What if my accident damages cost more than my insurance limits?
A: If the costs exceed your insurance limits, you will be responsible for the remaining balance. This can lead to out-of-pocket costs or legal action to recover the remaining damages.
Q: Do higher insurance coverage limits increase my premium a lot?
A: Higher coverage limits typically result in a modest increase in premium, but the added protection is often worth the extra cost. For many drivers, upgrading to 100/300/100 coverage may not significantly increase premiums, but it provides much better financial security.
Q: What is the difference between split limits and a single limit in car insurance?
A: Split limits (e.g., 100/300/100) divide the coverage into separate amounts for bodily injury per person, bodily injury per accident, and property damage. A single limit policy (also known as a combined single limit) applies one lump sum to cover all liabilities in an accident.
Get a Quote Today!
Choosing the right car insurance limits is essential to ensuring you’re adequately protected on the road. Insure on the Spot at 773-202-5060 can help you find the perfect coverage for your needs and budget. Whether you’re looking for the state minimum or opting for a higher limit like 100/300/100, we can customize your policy for maximum protection. Call us today for a free quote!