Driving in the Midwest? You Need Insurance

Just like the rest of the United States, you should never be on the road in Illinois if you don’t have the right auto insurance policy. Here are some of them:

1. Liability Insurance

This is the type of insurance coverage that protects you in case you meet an accident, and the other party suffers a property damage, an injury, or both. Based on the rules, the minimum limit is $20,000 bodily injury per person for every accident. It can also increase to $40,000 for all persons for each accident.

General liability insurance will also cover property damage, which is at least $15,000. You can also use the money to fund for expenses in case the other party decides to sue you. You can go higher but never below these amounts. Otherwise, the state considers you as an underinsured motorist.

You might be asking about SR-22 in Chicago, however. Contrary to what most people believe, this is not a kind of insurance coverage. Instead, it is a filing, which means it’s a document your insurance provider must give to the state.

What is it for? It’s to tell the state you have enough insurance coverage and that you’re ready to drive again. It’s a requirement in cases when you experience a revocation or suspension of your license. You can lose your license for a variety of reasons, including driving under the influence and without an auto insurance policy.

2. Underinsured and Uninsured Motorist Insurance

This is the kind of auto insurance policy that shelters you from possibly significant expenses if you meet an accident, and the other party doesn’t have sufficient coverage.

The Illinois auto insurance law has a minimum limit of $20,000 per person per accident or $40,000 for all persons per accident. Meanwhile, the underinsured motorist coverage is at least $25,000 per coverage. For uninsured coverage, your minimum limit is $15,000 for property damage with a deductible of $250. Like general liability insurance, this is also mandatory in Illinois.

3. Comprehensive and Collision Insurance

two cars collidedIn Illinois, these are optional types of insurance, but you can still consider them because of the benefits. Comprehensive insurance coverage allows you to claim money if you experience property damage due to non-collision events. These include fire, theft, glass breakage, and vandalism. Some even include situations due to acts of God, such as floods and earthquakes.

Collision coverage can include expenses that you incur if you have property damage after colliding with an object such as a pole or a fence, as well as another vehicle. This is different from the property damage coverage under general liability. This one is intended for the other party.

4. Insurance Bundles

The idea is bundling should drive your premiums for both down, but it’s always not the case. It’s even possible you pay less, but it’s still a waste of money since you might not need one of them. For example, you might already have a family health insurance plan from work.

When choosing your auto insurance in Illinois, focus on general liability and uninsured and underinsured policies first. These are, after all, mandatory. Then, you can assess whether the others are worth the spending.

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