Auto insurance liability limits in Illinois have been set at a minimum of $20,000/ $40,000/ $15,000 for more that 25 years. Governor Pat Quinn on Thursday, Aug 22nd, signed a bill that increases the mandatory minimum auto liability insurance coverage’s to $25,000/$50,000/$20,000 on car insurance policies issued after Jan. 1, 2015
Liability coverage is mandatory in the state of Illinois and it is, in the simplest terms, it pays for damages you do to other peoples person, or property. It is divided into three parts. Bodily Injury Liability pays for damages to others caused by covered drivers on your auto insurance policy. In Illinois the minimum limits are increasing to $25,000 per person and $50,000 total Bodily Injury per accident if multiple people are injured. The third part involves damage done to others property. Property Damage Liability will be going up to $20,000.
The reason for the state of Illinois raising the required minimum limits of insurance is based on the realization that over the past 25 years the average cost of an accident has risen substantially. According to Truecar.com, the average new-car was $30,084, twice the current insurance requirement of $15,000 for property damage. Anyone that turns on the news, or has spent even a few days in a hospital can verify that the cost of medical care has sky-rocketed over the past two decades. With that in mind, the increase in limits are well over due.
Even with these new limits, it is still vital that you carry enough liability insurance, because if your the cause of a serious accident, you could be sued for a considerable amount of money. Medical bills arising from a serious accident, particularly if several people are hurt, will certainly exceed the basic mandatory limits. While obtaining the State required limits will allow you to be in compliance with Illinois laws, remember, you can be held responsible for damages in excess of your policy limits. Yes they can take your home or other assets. It is for this reason that people often opt to by higher limits.