Are you insured correctly?
Illinois state minimum auto insurance requires you to carry 25/50/20 BI/PD limits. BI/PD stands for Bodily injury and Property damage..
The first number, 25, stands for $25,000 for bodily injury liability in case you get into an at fault accident and there is ONE person in the car. $25,000 seems like a lot right? Not really.. If you think about it the average cost of any ambulance ride is $400 – $2,500 depending on the level of care you are provided. Let’s say this person has broken bones and needs surgery, X-rays can cost up to $13,000 depending what part of the body it is or if said person needs multiple X-rays. And let’s not forget about the recovery process, how long can that take – so many follow ups, physical therapy, etc. $25k can be gone in the blink of an eye and then you would be legally responsible to pay out of pocket for this person to get back to good health. I wouldn’t want to be in those shoes, would you?
The second number, 50, is $50,000 – bodily injury for an at fault accident in case there is more than one person in the car. Can you imagine if the accident involved a van with 6 people in it? That wouldn’t be close to enough in case they all got injured somehow.
The last number, 20, is for $20,000 for property damage. So, if you hit someone’s $50,000 brand new BMW.. Well I think you get the point. I wouldn’t want to have to pay someone $30,000 out of MY pocket over the years. This $20,000 also insures if you drive into a fence, someone’s home or even a city lamp post.
There are higher limits you can purchase for as little as $5 per month more than what you’re currently paying to have some peace of mind.
That’s the first section of your policy coverage, the next is your deductible. Usually $500 – This is the portion you are responsible for in case of an at fault accident. The higher your deductible the lower your premium and the lower your deductible the higher your premium.
There is a collision deductible – in case you collide with a car or another object, and a comprehensive deductible for things that happen out of your control (hail, fire, theft, vandalism, etc.)
You should also have medical coverage on your policy and usually the limit is $5,000. This covers you and your passengers in case of an at fault accident. This is a per person limit.
UM/UIM – Underinsured motorist and uninsured motorist. If someone hits you and they have low limits on their policy or they don’t have insurance, your policy can help you.
Another type of coverage you will find on your policy would be UMPD, uninsured motorist property damage. The limit here is usually $15,000 with a $250 deductible. This coverage is only added on a liability policy and kicks in when someone hits your vehicle and they are uninsured or in case of a hit and run. You’re policy would pay for your vehicle to be fixed even though it’s not insured for full coverage.