In Illinois, all drivers are legally required to carry liability car insurance. This coverage protects you financially in the event that you cause injury or property damage to others in an accident. Liability insurance covers medical expenses, lost wages, and vehicle repairs for the other party, up to the limits of your policy.
However, it does not cover your own injuries or vehicle damage. Carrying liability insurance is essential for avoiding hefty financial burdens and lawsuits after an accident.
For a quick, affordable liability insurance quote, call Insure on the Spot at 773-202-5060.
What Does Liability Car Insurance Cover?
Liability car insurance provides coverage for third-party bodily injuries and property damage caused by your vehicle in an accident. In practical terms, if you are at fault in a crash, your liability insurance will pay for the damages sustained by the other driver and passengers, as well as any property damage you cause.
Bodily Injury Liability (BI)
Bodily injury liability covers medical expenses, lost wages, pain and suffering, and legal costs for people injured in an accident you caused. For example, if you rear-end another car and the driver sustains neck injuries, your bodily injury coverage would pay for their medical bills and rehabilitation. Illinois requires a minimum of $25,000 per person and $50,000 per accident in bodily injury liability coverage on every auto policy.
Property Damage Liability (PD)
Property damage liability covers the repair or replacement costs for other people’s property damaged by your vehicle. This can include other cars, fences, buildings, or utility poles. Illinois law requires at least $20,000 in property damage liability coverage per accident. If you cause significant damage, it’s essential to consider higher limits to ensure full coverage.
What Is Bodily Injury Liability Insurance?
Bodily injury liability insurance is designed to pay for the injuries or deaths of others when you’re at fault in an accident. This coverage includes medical treatment, hospital bills, rehabilitation costs, and lost wages for the injured party. It can also cover legal defense costs if the injured party sues you for damages.
In Illinois, bodily injury liability insurance must provide at least $25,000 per person and $50,000 per accident for injuries. While this is the state’s minimum, it may not be sufficient in serious accidents. Consider increasing your limits if you have significant assets, as costs can exceed these minimums. Higher limits can protect your finances from lawsuits and medical expenses that go beyond your coverage.
What Is Property Damage Liability Insurance?
Property damage liability insurance pays for the repair or replacement of other people’s property damaged by your car. This could include vehicles, fences, or even buildings. Illinois requires a minimum of $20,000 in property damage liability per accident. However, this limit may not be enough for more severe accidents. For example, if you total a $30,000 SUV, you would be personally responsible for the $10,000 shortfall if you only carry the state minimum.
Property damage liability does not cover your own vehicle’s damage. If your car is damaged in an accident you caused, it will only be covered if you have collision coverage on your policy.
What Is Uninsured/Underinsured Motorist Coverage?
In Illinois, uninsured/underinsured motorist (UM/UIM) coverage is required to protect you if you’re involved in an accident with a driver who has no insurance or insufficient insurance. Uninsured motorist coverage helps cover your medical bills, lost wages, and pain and suffering if the at-fault driver is uninsured or involved in a hit-and-run.
Underinsured motorist coverage steps in if the at-fault driver’s insurance is insufficient to cover your injuries. For instance, if the other driver has a $25,000 liability policy but your medical bills total $50,000, UIM coverage can pay the difference, up to your policy’s limit. Illinois law requires insurers to offer UIM coverage when you carry higher-than-minimum UM limits.
How Much Liability Insurance Do I Need in Illinois?
The minimum liability coverage in Illinois is 25/50/20, but this may not be enough in the event of a serious accident. Higher limits, such as 50/100/50 or 100/300/100, offer better financial protection and can prevent you from being personally liable for costs exceeding your policy limits. If you own assets like a home or savings, it’s essential to carry sufficient liability coverage to protect yourself from lawsuits. An umbrella insurance policy, which provides additional coverage beyond your auto policy limits, is another option for greater financial protection.
What Happens If I Drive Without Insurance in Illinois?
Driving without insurance in Illinois carries severe penalties. If caught, you’ll face a minimum fine of $500, and your vehicle’s registration (license plates) will be suspended. To reinstate your registration, you’ll need to provide proof of insurance and pay a $100 reinstatement fee. Repeat offenders may face a four-month suspension and fines up to $1,000. Additionally, you may be required to file an SR-22 certificate, which can increase your insurance premiums and label you as a high-risk driver.
The bottom line is that driving without insurance is not worth the risk of fines, registration suspension, and potentially losing your driving privileges. Liability insurance is required by law and provides essential financial protection in case of an accident.
Is Liability-Only Insurance the Same as Full Coverage?
No, liability-only insurance is different from full coverage auto insurance. Liability-only insurance covers damages to others when you’re at fault, but it doesn’t cover your own injuries or vehicle damage. Full coverage insurance includes liability coverage plus protection for your own car through collision and comprehensive coverage.
If you only carry liability insurance, you will have to pay out of pocket for damage to your own car and injuries you sustain in an accident. Full coverage is essential if you have a newer vehicle or want comprehensive protection.
Frequently Asked Questions about Liability Insurance
Q: What does liability insurance cover?
A: Liability insurance covers third-party injuries and property damage that you cause in an accident. It pays for medical expenses, lost wages, and vehicle repairs for the other party, as well as legal defense costs if you’re sued. It does not cover your own injuries or vehicle damage.
Q: What are the types of liability insurance?
A: The main types of liability insurance include auto liability (covering vehicle accidents), general liability (for businesses), professional liability (for professionals), product liability (for manufacturers), and umbrella liability (providing extra coverage beyond other policies).
Q: Why is liability insurance important?
A: Liability insurance protects you financially by covering damages to others when you’re at fault in an accident. It ensures victims receive compensation and shields you from paying for those costs out of pocket. It’s also a legal requirement in Illinois.
Q: What key factors should I consider when choosing liability insurance?
A: Consider the coverage limits (higher limits are recommended), exclusions (understand what’s not covered), and state laws (ensure your policy meets Illinois requirements). Make sure your policy aligns with your assets and risk level.
Get a Quote Today!
For a personalized liability insurance quote, call Insure on the Spot at 773-202-5060. Our team will help you choose the right coverage to meet your needs and keep you legally protected on the road. Get your quote now and drive with confidence!