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Choosing the Right Auto Insurance: Protecting Yourself Before the Accident Happens
In Illinois, many people believe that once an auto accident occurs, their ability to recover from damages will hinge on the actions they take after the fact—filing claims, dealing with adjusters, or possibly pursuing a lawsuit. However, the reality is that you often lose your ability to recover in an auto accident long before the accident even happens. How? By failing to secure the right type and amount of insurance coverage beforehand.
Understanding Illinois Minimum Coverage
Illinois law requires drivers to carry at least $25,000 in bodily injury liability coverage and an equivalent $25,000 in uninsured motorist (UM) coverage. This is a minimum legal requirement, meant to ensure that you have some protection if you’re injured by another driver’s negligence or an uninsured driver. However, this minimum is often inadequate, especially when you consider the actual costs involved in medical care and lost wages following a serious accident.
To compound the problem, Illinois does not mandate underinsured motorist (UIM) coverage where uninsured motorist coverage is only $25,000. In other words, if you have only the minimum required insurance, you will not be protected in the event you’re injured by an underinsured driver—someone who carries the same $25,000 coverage or less.
The Best Coverage Upgrade You Can Make
One of the most cost-effective ways to protect yourself is to increase your uninsured motorist (UM) and underinsured motorist (UIM) coverage to at least $50,000. This upgrade is often available for less than $100 more on your insurance premium per year, and it can make a world of difference if you’re in a serious accident. With this higher coverage, you’ll have access to $50,000 in both UM and UIM protection. This means if you’re hit by an uninsured driver or a driver who only carries the $25,000 minimum, you’ve effectively doubled your available coverage—providing much-needed security in the aftermath of an accident.
This relatively inexpensive upgrade ensures that you’re not left to cover the majority of your medical bills or lost wages if the other driver has inadequate insurance. It’s a simple step you can take to safeguard your financial future before you ever get behind the wheel.
The Pitfalls of Non-Standard Insurance Companies
When shopping for insurance, it’s also crucial to understand the difference between non-standard and standard automobile insurance companies. Non-standard insurers typically target high-risk drivers and offer cheaper policies. However, these policies often come with significant downsides, including reluctance to pay claims. In fact, non-standard insurance companies are notorious for refusing to pay until a lawsuit is filed. This delay in payment not only exposes the at-fault driver to the stress and financial risk of litigation but also causes delays in compensation for the injured party.
Moreover, non-standard insurers are often reluctant to help their own insureds with repairs to their vehicles, regardless of fault. This leaves policyholders in a bind, adding further frustration to what is already a stressful situation. Lastly, many non-standard companies in Illinois do not offer coverage higher than $25,000, which means no access to underinsured motorist coverage, further limiting your ability to recover if you are hit by a driver with insufficient insurance.
Conclusion
When choosing auto insurance, it’s essential to think beyond the legal minimums and consider the real-world costs and risks involved in an accident. The best coverage decision you can make is to increase your UM and UIM coverage to at least $50,000, ensuring you’re better protected if you’re hit by an uninsured or underinsured driver. Additionally, avoid non-standard insurance companies if possible, as their reluctance to pay claims can leave you in a difficult position when you need help the most.
By making informed choices about your coverage, you can protect yourself financially and emotionally long before you ever face an accident. Please contact us if you would like to have your current automobile policy coverage reviewed.
About the Author: Jeff Bier is the managing partner of Carlson Bier Associates (www.carlsonbier.com) His practice is focused on assisting victims who have experienced personal injury. Jeff’s previous practice focused on insurance coverage where he has secured several appellate court victories, shaping Illinois law on numerous areas of insurance coverage, including uninsured and underinsured motorist coverage.
