what you need to know

When driving a car, it is important to have the right insurance. Bodily injury liability is an important component of a Chicago auto insurance policy. In this article, we’ll explore exactly what it covers and how much you need.

How does personal injury liability insurance work?

Bodily injury liability insurance can protect you when you injure someone else in a car accident. This coverage is mandatory in Illinois and can help pay for other people’s medical bills, lost wages, and even legal fees if they decide to sue you.

Personal injury liability includes the following:

• Medical expenses for the injured
• Lost wages if you are unable to work due to injury
• Pain and Suffering Compensation
• If you are taken to court, you will need to pay attorney fees

It’s important to note that this coverage does not cover your injuries or damage to your car. This is covered by other types of insurance. Personal injury liability can protect you financially if you injure someone else in an accident.

Coverage Details: What Does Bodily Injury Liability Include?

When you look at your insurance policy, you’ll see bodily injury liability limits expressed as three numbers, such as 25/50/20. The meaning of these numbers is as follows:

• The first number is the maximum amount the insurance will pay per person injured in the accident, which is $25,000.
• The second number is the maximum total payout for all injuries in an accident, which is $50,000.
• The third number is the property damage liability limit, which is $20,000.

In this case, if you cause an accident in which two people are injured, your insurance will pay up to $25,000 for each person’s injuries, but the total compensation for the accident will not exceed $50,000. These limits are important because if the cost exceeds your coverage, you may be responsible for the difference. Therefore, if you can afford it, it is recommended that you purchase more than the minimum coverage.

Chicago Legal Requirements and Minimum Requirements

In Illinois, bodily injury liability insurance is mandatory. Required minimum coverage includes the following:

• $25,000 for each person injured in the accident
• Total $50,000 per incident
• Property damage $20,000

These are just the minimum requirements. Depending on your situation, you may want to consider a higher limit.

If you are caught driving without insurance in Chicago, you may face some serious consequences, including the following:

• Fines range from $500 to $1,000
• Suspend your license plate
• Your driver’s license may be revoked

Not worth the risk. Make sure you’re prepared before hitting the road.

Choose the personal injury liability insurance that’s right for you

Although state minimum standards appear adequate, they may not provide adequate protection in all circumstances. When deciding on coverage limits, consider the following factors:

• Your personal assets: If you own a home or have significant savings, you may need higher limits to protect your assets in the event of a lawsuit.
• Your risk tolerance: Determine your tolerance for potential financial risk.
• Your driving habits: Consider how often you drive and the areas you travel.
• Your vehicle: More expensive cars generally have higher insurance requirements.

Many insurance experts recommend coverage of at least 100/300/100, which is $100,000 per person, $300,000 per accident, and $100,000 for property damage. Some even recommend setting the limits to 250/500/100 for optimal protection.

While higher limits cost more, the difference may be smaller than you think. The average annual car insurance rate in Illinois is $1,120, but your actual rate will depend on factors such as your age, driving record and the type of car you drive.

Handling Personal Injury Liability Claims and Disputes in Chicago

The process after an accident in which someone has been injured typically includes the following steps:

1. You report the accident to your insurance company.
2. Insurance adjusters investigate claims.
3. Negotiations may occur between insurance companies or with the injured party.
4. The claim is settled or, if no agreement can be reached, it may go to court.

Disputes may arise over who is at fault, the severity of the injury, or whether preexisting medical conditions are involved. Illinois follows a modified comparative negligence rule. This means that if you were less than 50% at fault for the accident, you can still recover damages, but the damages will be reduced based on your percentage of fault.

Impact of Uninsured and Underinsured Motorist Coverage

While personal injury liability can protect others from your mistakes, uninsured and underinsured motorist coverage can protect you when someone else is at fault.

In Illinois, uninsured motorist coverage is mandatory, with minimum limits meeting bodily injury liability requirements – 25/50. This protects you if you are hit by an uninsured driver. Underinsured motorist coverage is not required, but it is a good idea. If the at-fault driver is underinsured, it can bridge the gap between your coverage and your costs.

Chicago-specific considerations

Chicago’s average annual premium is $1,303, which is higher than the state average. This is due to the following factors:

• higher population density
• Traffic is more congested
• Crime rates are high in some areas

Illinois now accepts electronic proof of insurance, allowing you to save your insurance card on your phone. If you are pulled over, you have a 7-day grace period to provide proof of insurance.

Protect Yourself on Chicago Roads

Navigating Chicago’s busy streets is challenging enough without having to worry about insurance. Review your current coverage to make sure you’re protected. At American Auto Insurance, we understand you have unique needs. We can help you find the right coverage at a price that fits your budget. Contact us today at 773-286-3500 and get a quote that will give you peace of mind on your trip.

Man Opens Ambulance Door by Mikhail Nilov is licensed from Pexels.