An amendment to 625 ILCS 5/1-164.5 increases the obligation for Illinois vehicle owners and operators to carry liability insurance.

Effective January 1, 2015, all new or renewed policies must include:

• $25,000 minimum liability coverage for bodily injury or death of one person (currently $20,000).
• $50,000 minimum liability coverage for bodily injury or death of two or more persons in one accident (currently $40,000).
• $20,000 minimum coverage for property damage (currently $15,000).

It is important to remember that these are minimums only.

Why Minimum Coverage Isn’t Enough

Modern healthcare costs can easily exceed these limits. For example, imagine:

• Car A rear-ends Car B, which has three injured passengers.
• Each person in Car B incurs damages of more than $20,000 (lost wages, hospital bills, pain and suffering).
• Under the new law, Car A’s $25,000 policy is all that’s available to cover all injuries combined.

This means all three injured passengers must split $25,000 — even in cases of severe injury or death.

Protecting Yourself and Your Loved Ones

We’ve said it before: the best way to protect yourself, your family, and your passengers is to carry additional coverage. This includes:

• Higher liability limits to protect your assets if you cause an accident.
• Underinsured/Uninsured Motorist coverage (UIM) to cover you if the other driver has too little (or no) insurance.
• Umbrella policies for broader protection of your home, business, and savings.

Consider this scenario: you’re driving with your spouse and child when you swerve to avoid an animal and crash into a guardrail. Your spouse suffers a head injury and your child breaks an arm. If you carry only the minimum, your loved ones may be left with far less than they need.

Why You Should Review Your Policy Now

Too many tragic cases involve catastrophic injuries or death where only the minimum policy limits applied. In those situations, families were left without adequate compensation — and drivers risked losing personal assets to lawsuits.

Speak with your insurance agent about increasing both your liability coverage and UIM protection. Doing so protects not just you, but also your passengers — often your spouse, children, or other loved ones.

At Harter & Schottland, we are not affiliated with any insurance company. Our concern is simply that you and your family are adequately protected.