Car wrecks can happen in the blink of any eye. When these collisions happen, your life can be turned upside down. The type of auto insurance coverage you have can make all the difference in protecting you and your family. Unfortunately, many drivers don’t fully understand what their policies actually cover—or what types of protection they should have. As an Illinois car accident lawyer, I often see clients who could have avoided major financial stress simply by knowing the basics of their coverage. Here’s a simple breakdown of four key types of auto insurance in Illinois: bodily injury liability, uninsured motorist, underinsured motorist, and medical payments coverage.
Bodily Injury Liability Coverage
This type of coverage protects the driver who causes a car crash. It sets out the extent of the protection the insurance company provides. Put another way, it sets the amount of money that the at fault (negligent) driver’s insurance company will pay. Illinois law requires all drivers to carry bodily injury liability insurance. The minimum required coverage is $25,000 per person and $50,000 per accident, often written on your policy as 25/50.
Those two numbers represent what’s known as “per person / per occurrence” limits. The per person limit is the maximum amount your insurance company will pay for injuries to any one person in a single accident. The per occurrence (or “per accident”) limit is the total amount your insurer will pay for all injuries in that one crash, no matter how many people are hurt. This is true for all types of coverages discussed here.
Example: If three people are injured in a car crash and the driver who is at fault has a policy limit of 25,000 per person/50,000 per occurrence, the most the insurance company will have to pay to one person is $25,000. Since in our example, three people were injured, the insurance company would only have to pay out a maximum of $50,000, to be split between the three injured people. This is the case despite how badly injured each person is or regardless of the amount of the medical bills or lost wages. Any remaining costs could come out of your pocket.
Uninsured Motorist (UM) Coverage
Even though insurance is required by Illinois law, many people still drive without it. If you’re hit by someone who has no insurance—or if you’re the victim of a hit-and-run—uninsured motorist (UM) coverage steps in. The purpose of this type of insurance is to protect you under your insurance policy when you are hurt by a driver who did not have insurance. The amount of protection you have under your insurance policy is listed on the declarations page of your policy.
Example: Imagine you’re driving home when another driver runs a red light and hits you, causing serious injuries. If that driver has no insurance, your UM coverage can pay for your medical bills, lost wages, and pain and suffering—expenses that otherwise might never be recovered.
Underinsured Motorist (UIM) Coverage
Underinsured motorist (UIM) coverage protects you when the at-fault driver has insurance but not enough. This is a common situation because Illinois’ minimum bodily injury coverage limits are relatively low. This coverage allows you to set how much protection you want. As long as your insurance coverage for UIM is greater than the at fault driver’s bodily injury limit of coverage, then you can make a claim under your policy for the difference between your UIM coverage and the at fault driver’s bodily injury coverage.
Example: Suppose the driver who caused your accident has only $25,000 in coverage, but you have UIM coverage for $100,000. After the at fault driver pays out its $25,000, then you can make a claim against your insurance carrier for an extra $75,000 (the difference between the at fault driver’s coverage and your UIM coverage). This type of coverage ensures you aren’t left paying for someone else’s negligence.
Medical Payments (Med Pay) Coverage
Medical payments (Med Pay) coverage is optional but can be extremely helpful. It pays for reasonable medical expenses for you and your passengers after an accident—regardless of who was at fault.
Example: If you’re rear-ended and need emergency care or physical therapy, Med Pay can cover those costs right away, even before the other driver’s insurance accepts responsibility. It can also help cover deductibles or co-pays if you have health insurance.
The Bottom Line
Understanding your auto insurance coverage in Illinois before an accident happens is one of the best ways to protect yourself and your family. Knowing what “per person / per occurrence” means—and how your coverage limits actually work—can prevent costly surprises later. Uninsured and underinsured motorist coverage, in particular, can be lifesavers when another driver doesn’t carry enough insurance. That’s why we at Prince Law Firm recommend carrying higher coverage limits to better protect yourself and your assets.
At Prince Law Firm, we’ve seen firsthand how the right coverage can make a world of difference after a crash. If you’ve been injured in a car accident or have questions about your insurance policy, contact our team today at 618-967-8839 or princelawfirm.net. We’ll review your situation, explain your options, and help you fight for the compensation you deserve.
Prince Law Firm – Dedicated to protecting the rights of injured people across Southern Illinois.
