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What Illinois Requires

Illinois law requires all drivers to carry minimum liability insurance of $25,000 per person and $50,000 per accident for bodily injury, plus $20,000 for property damage. These minimums, set under 625 ILCS 5/7-317, have not kept pace with the rising cost of medical care.

For perspective, a single emergency room visit after a car accident can easily exceed $10,000. A broken bone requiring surgery may cost $30,000 to $50,000 or more. A traumatic brain injury or spinal cord injury can generate medical bills in the hundreds of thousands of dollars. The $25,000 minimum is simply inadequate for anything beyond the most minor injuries.

The Gap Between Minimum Coverage and Real Costs

According to data from the Insurance Research Council, roughly one in eight Illinois drivers is uninsured, and many more carry only the state minimum. When one of these drivers causes a serious accident, the victim is left with a massive gap between their actual losses and the available insurance.

Consider a common scenario: you are rear-ended at a stoplight in Peoria by a driver carrying the minimum $25,000 in liability coverage. You suffer a herniated disc that requires surgery, physical therapy, and six months off work. Your medical bills total $85,000 and your lost wages add another $30,000. The at-fault driver’s entire policy limit of $25,000 covers less than a quarter of your losses.

How UM/UIM Coverage Fills the Gap

Uninsured motorist (UM) coverage protects you when the at-fault driver has no insurance at all. Underinsured motorist (UIM) coverage applies when the at-fault driver’s insurance is insufficient to cover your damages. Both are available as part of your own auto insurance policy.

Illinois insurers are required to offer UM/UIM coverage, but you may have waived it when purchasing your policy. If you currently carry UM/UIM coverage, it acts as a safety net—bridging the gap between what the at-fault driver can pay and what your injuries actually cost.

In the scenario above, if you carried $100,000 in UIM coverage, you could recover the $25,000 from the at-fault driver’s policy and then claim up to $75,000 in additional compensation from your own UIM coverage.

Why You Should Carry More Than the Minimum

Carrying higher liability limits protects your own assets if you cause an accident. Carrying adequate UM/UIM coverage protects you when someone else causes one. Both are important, and both are relatively inexpensive compared to the protection they provide.

Increasing your UM/UIM coverage from $25,000 to $100,000 typically costs only a few dollars more per month. Given that a serious accident can result in six-figure medical bills, this is one of the most cost-effective forms of protection available to Illinois drivers.

Review Your Coverage Today

Pull out your auto insurance declarations page and check your UM/UIM limits. If they match the state minimum, consider increasing them. If you have been injured by an uninsured or underinsured driver and need help understanding your coverage options, the car accident attorneys at Parker & Parker can review your policy and help you recover the full compensation you deserve. Contact us for a free case review.

Injured? Get a Free Case Review.

The personal injury attorneys at Parker & Parker have been fighting for accident victims in Peoria and across Central Illinois for over 25 years. Call (309) 674-0044 or contact us online for a free, no-obligation consultation.

Frequently Asked Questions

What is the minimum auto insurance required in Illinois?

Illinois requires at least $25,000 per person and $50,000 per accident in bodily injury liability coverage, plus $20,000 in property damage coverage. These are among the lowest minimums in the country.

Why is Illinois minimum auto insurance not enough?

A single ER visit can exceed $10,000, and serious injuries like broken bones or herniated discs can generate medical bills of $50,000 or more. The $25,000 minimum cannot adequately cover most accident-related injuries.

How does UM/UIM coverage protect me?

UM/UIM coverage is part of your own auto policy. It pays for your injuries when the at-fault driver is uninsured (UM) or does not have enough insurance to cover your losses (UIM), up to your policy limits.

Dealing with injuries after a car crash can feel overwhelming. Our experienced Peoria personal injury attorneys can guide you through every step of the legal process.

Need a lawyer? This article is part of our Peoria Car Accident Lawyer practice area. Call Parker & Parker at 309-673-0069 for a free consultation.

Illinois Minimum Auto Insurance Requirements and Why They Are Not Enough