How Much Auto Insurance Do You Really Need in Illinois?

The Minimum Requirements in Illinois

If you're registering a vehicle in Illinois, state law mandates that you carry a minimum amount of liability insurance. Currently, the minimum limits are $25,000 for injury or death of one person, $50,000 for injury or death of multiple people in a single accident, and $20,000 for property damage (often written as 25/50/20). You are also required to carry matching limits for Uninsured Motorist coverage.

While purchasing the state minimum is the cheapest way to get legally on the road, it is rarely the smartest financial decision.

Why Minimum Coverage is a Financial Trap

Imagine causing an accident on the Tri-State Tollway that totals the other driver's new SUV. The average cost of a new car today is well over $40,000. If you only have the state minimum of $20,000 for property damage, your insurance will pay the first $20,000, and you will be personally responsible for the rest. That means the other driver's insurance company can sue you, garnish your wages, and go after your assets for the remaining balance.

Liability Coverage: Protecting Your Assets

Liability coverage pays for the damage you cause to others. Because medical bills and vehicle costs have skyrocketed, we strongly recommend carrying significantly higher liability limits than the state minimum.

• Good: 50/100/50
• Better: 100/300/100
• Best: 250/500/100 (often required if you want a personal umbrella policy)

The cost difference between state minimum and 100/300/100 is often much smaller than people expect—sometimes just a few dollars a month.

Uninsured and Underinsured Motorist Coverage

Did you know that an estimated 1 in 8 drivers on the road are uninsured? Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage protects you if you are hit by someone who either doesn't have insurance or doesn't have enough to cover your medical bills. In Illinois, your UM/UIM limits automatically match your liability limits unless you specifically request lower amounts (which we rarely advise).

Collision and Comprehensive: Protecting Your Vehicle

If you want your own car repaired or replaced after an accident, you need Collision and Comprehensive coverage.

• Collision: Pays to repair your car if you hit another vehicle or an object (like a fence or a pole).
• Comprehensive: Covers damage from events outside your control, such as hitting a deer, hail damage, theft, or vandalism.

If you have a loan or a lease on your vehicle, your lender will require you to carry both. If your car is older and fully paid off, you might consider dropping these coverages, but only if you have the cash on hand to replace the vehicle if it's totaled.

Getting the Right Coverage for Your Budget

Determining the right amount of auto insurance isn't a guessing game. It depends on your net worth, your vehicle, and your budget. As a local auto insurance agency, we can help you find the sweet spot between protecting your assets and keeping your monthly premiums affordable.

Don't wait until after an accident to find out you're underinsured. Request a free auto insurance quote today and let us help you build a policy that truly protects you.

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