There are seven key types of auto insurance coverage: liability, collision, comprehensive, medical payments (MedPay), uninsured/underinsured motorist, personal injury protection (PIP), and gap coverage. Each offers protection for different situations, from accidents to theft or medical bills. In Illinois, drivers must carry liability insurance and uninsured motorist coverage by law.
To get a quote or review your coverage options in Chicago, call Insure on the Spot at 773-202-5060 today.
Why It’s Crucial to Understand Your Auto Insurance Options
Auto insurance does more than meet legal requirements—it protects your finances when things go wrong. Illinois law mandates a minimum liability policy, but minimum limits often fall short in real-world crashes. For example, the average bodily injury claim in Illinois is over $26,000—higher than the state’s required per-person minimum. Knowing what each type of coverage does helps you avoid gaps that could leave you paying out of pocket after an accident.
What Are the 7 Main Types of Car Insurance Coverage?
Here’s a clear breakdown of each essential auto insurance option:
1. Liability Insurance (Bodily Injury and Property Damage)
Liability insurance pays for injuries or damage you cause to others in an accident you’re legally responsible for.
- Bodily Injury Liability: Covers the medical costs, lost wages, and legal claims for people injured in a crash you caused.
- Property Damage Liability: Pays for damage to vehicles, fences, mailboxes, or other property.
Illinois requires a minimum of 25/50/20 coverage:
- $25,000 per person injured
- $50,000 total per accident
- $20,000 for property damage
Edge case: If someone else drives your car with permission and causes a crash, your liability insurance usually applies.
2. Collision Coverage
Collision coverage pays to repair or replace your own vehicle after a crash—regardless of who was at fault. It’s optional unless required by your lender.
It applies if you:
- Hit another car
- Hit a fixed object like a pole or guardrail
- Suffer damage from a pothole
Edge case: Yes, damage from potholes is covered under collision—not comprehensive.
3. Comprehensive Coverage
Comprehensive insurance protects your car from non-collision events like:
- Theft
- Vandalism
- Weather damage (hail, flood, or fire)
- Falling objects
- Hitting an animal
Comprehensive coverage is optional but often bundled with collision for full protection.
Edge case: If you hit a deer, that’s a comprehensive claim—not collision.
4. Personal Injury Protection (PIP)
PIP pays for your medical expenses, lost wages, and other personal costs after an accident—no matter who was at fault. It’s mandatory in some states, but not available in Illinois. Illinois drivers can instead choose MedPay for basic medical coverage.
5. Uninsured/Underinsured Motorist Coverage (UM/UIM)
This coverage protects you if you’re hit by:
- A driver with no insurance (uninsured)
- A driver with too little insurance (underinsured)
- A hit-and-run driver
Illinois requires uninsured motorist bodily injury coverage with limits of at least 25/50.
Edge case: Hit-and-run incidents are treated like uninsured motorist claims in Illinois.
6. Medical Payments (MedPay) Coverage
MedPay covers medical costs after an accident, regardless of who caused it. It helps pay for:
- ER visits
- Surgery or hospital bills
- Ambulance transportation
MedPay is optional in Illinois but provides a useful layer of medical coverage if you have high-deductible health insurance.
7. Gap Insurance
Gap coverage pays the difference between what you owe on a car loan or lease and the car’s value if it’s totaled or stolen. It’s especially useful for newer vehicles that depreciate quickly.
Use case: If you owe $25,000 on a car worth $20,000, gap insurance covers the $5,000 shortfall if the car is totaled.
What Coverage Do You Really Need?
Your exact needs will depend on your vehicle, financial situation, and risk tolerance. Here are a few guidelines:
- Start with the required minimums: In Illinois, that means 25/50/20 liability and uninsured motorist coverage.
- Add collision and comprehensive if you drive a newer car or one that’s leased or financed.
- Increase your liability limits to at least 100/300 for better asset protection.
- Consider MedPay if your health insurance has high deductibles.
- Add gap insurance if you owe more on your car than it’s worth.
What Are the Illinois Minimum Auto Insurance Requirements?
To drive legally in Illinois, you must carry:
- Liability insurance: 25/50/20 minimum
- Uninsured motorist coverage: 25/50 minimum for bodily injury
Collision, comprehensive, MedPay, and gap insurance are not legally required, but they can offer critical financial protection depending on your situation.
How to Choose the Right Coverage for You
Follow these steps to build a policy that fits your needs:
- Start with the legal minimums
- Assess your ability to cover out-of-pocket repairs
- Evaluate your car’s age, value, and financing status
- Factor in your health coverage and driving habits
- Compare quotes across different coverage levels
Need help? Our team at Insure on the Spot can guide you through every option.
Frequently Asked Questions
Q: What are the main types of auto insurance coverage?
A: The seven types are liability, collision, comprehensive, personal injury protection (PIP), uninsured/underinsured motorist, medical payments (MedPay), and gap coverage.
Q: How do I know which coverage I need?
A: Start by meeting Illinois requirements, then consider your vehicle’s value, financial risk, and whether you need extra protection like MedPay or gap insurance.
Q: What is the minimum required insurance in Illinois?
A: You must carry 25/50/20 liability coverage and uninsured motorist bodily injury coverage of at least 25/50.
Get a Free Insurance Quote That Fits Your Coverage Needs
Still unsure which auto insurance coverage is right for you? The team at Insure on the Spot is here to help. Call 773-202-5060 or get a free online quote today—we’ll help you build a custom policy that gives you the right protection at the right price.