Bodily Injury Liability Insurance in Chicago, Illinois: What You Need To Know

When getting behind the wheel of your car, it’s important to have the right insurance coverage. Bodily injury liability is a crucial part of your auto policy in Chicago. In this article, we explore what exactly it covers and how much you need.

How Does Bodily Injury Liability Insurance Work?

Bodily injury liability insurance coverage protects you when you’re at fault in a car accident that injures someone else. This coverage is compulsory in Illinois and helps pay for the other person’s medical bills, lost wages, and even legal fees if they decide to sue you.

Bodily injury liability covers the following:

• Medical expenses for the injured party
• Lost wages if they can’t work due to injury
• Pain and suffering compensation
• Legal fees if you’re taken to court

It’s important to note that this coverage doesn’t pay for your injuries or damage to your car. This is covered by other types of insurance. Bodily injury liability protects you financially if you hurt 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, for instance, 25/50/20. These numbers mean the following:

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

In this case, if you cause an accident that injures two people, your insurance will pay up to $25,000 for each person’s injuries, but no more than $50,000 total for the accident. These limits are important because if the costs exceed your coverage, you may be responsible for the difference. That’s why it’s recommended that you get more than the minimum required coverage if you can afford it.

Legal Requirements and Minimums in Chicago

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

• $25,000 per person injured in an accident
• $50,000 total per accident
• $20,000 for property damage

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

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

• Fines ranging from $500 to $1,000
• Suspension of your license plates
• Possible suspension of your driver’s license

It’s not worth the risk. Make sure you’re covered before you hit the road.

Choosing the Right Bodily Injury Liability Coverage for You

While the state minimums may seem sufficient, they might not provide adequate protection in all situations. When deciding on your coverage limits, consider the following factors:

• Your personal assets: If you own a home or have significant savings, you may want higher limits to protect your assets in case of a lawsuit.
• Your risk tolerance: Determine how comfortable you are with potential financial risk.
• Your driving habits: Consider your driving frequency and the areas you travel in.
• Your vehicle: More expensive cars often have higher insurance needs.

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 suggest limits of 250/500/100 for the best protection.

While higher limits cost more, the difference may be less 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.

Navigating Bodily Injury Liability Claims and Disputes in Chicago

The process after you’re in an accident where someone is injured typically include the following steps:

1. You report the accident to your insurance company.
2. An insurance adjuster investigates the claim.
3. There may be negotiations between insurance companies or with the injured party.
4. The claim is settled, or if an agreement can’t be reached, it may go to court.

Disputes can arise over who was at fault, how severe the injuries are, or whether pre-existing conditions are involved. Illinois follows a modified comparative negligence rule. This means that if you’re less than 50% at fault for an accident, you can still recover damages, but they’ll be reduced by your percentage of fault.

The Impact of Uninsured and Underinsured Motorist Coverage

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

Uninsured motorist coverage is mandatory in Illinois, with minimums matching the bodily injury liability requirements — 25/50. This protects you if you’re hit by a driver who doesn’t have insurance. Underinsured motorist coverage isn’t required, but it’s a good idea. It covers the gap between the at-fault driver’s coverage and your expenses if their insurance isn’t sufficient.

Chicago-Specific Considerations

The average annual premium in Chicago is $1,303, which is higher than the state average. This is due to factors such as:

• Higher population density
• More traffic congestion
• Higher crime rates in some areas

Illinois now accepts electronic proof of insurance, allowing you to keep your insurance card on your phone. If you’re pulled over, you have a seven-day grace period to provide proof of insurance.

Protect Yourself on Chicago’s Roads

Navigating Chicago’s busy streets can be challenging enough without worrying about insurance. Make sure you’re protected by reviewing your current coverage. At American Auto Insurance, we understand that 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 to provide peace of mind on the road.

Man Opening the Door of an Ambulance by Mikhail Nilov is licensed with Pexels License.