Illinois requires drivers of motor vehicles to possess liability insurance to cover them in the event of an accident. This requirement is not just sound public policy – it also helps provide for your own financial security in the event of an accident. When purchasing liability coverage, please be mindful that if you are driving with low limits of coverage, you may inadvertently be placing your assets at risk in the event of an adverse judgment entered against you. Another important requirement in Illinois is that drivers must possess uninsured motorist (UM) and underinsured motorist (UIM) coverage. These types of policies protect you in the event that a driver that hits you either has no insurance coverage or has low limits of coverage insufficient to compensate you and/or your family members for injuries and damages. When purchasing UM and UIM coverage, it is important to realize that in the event of an accident whatever coverage the underlying driver carries is deducted from the limits of your UIM coverage. For example, if a driver who hits you possesses the minimum limits of $20,000 per person/$40,000 per occurrence, and you only have $25,000 in UIM coverage, that means that after the underlying driver’s $20,000 policy is paid, you only have an additional $5,000 of coverage to obtain from your own insurance carrier. One of the best ways to obtain peace of mind under these circumstances is to purchase an umbrella liability policy. Typically, $1 million of coverage can be purchased for under $200 a year. If the umbrella coverage is tied to your UM/UIM coverage, you would have the potential of an additional $980,000 coverage in the above example to help to protect you and your family in the event that you are it by a driver who was underinsured.
If you or any member of your family are involved in a motor vehicle accident, please contact me at 847.956.0000 to discuss the opportunity to receive full and fair compensation.