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An amendment to 625 ILCS 5/1-164.5 lays out the increased obligation for owners and operators […] The post The Load to Carry appeared first on Harter & Schottland.
An amendment to 625 ILCS 5/1-164.5 lays out the increased obligation for owners and operators of motor vehicles to carry liability insurance. The new law, affecting only policies issued or renewed after January 1, 2015, will require minimum liability coverage for bodily injury to or death of any person of $25,000 (it is currently $20,000) and minimum coverage of $50,000 for bodily injury to or death of 2 or more persons in any one accident (it is currently $40,000) and minimum property damage of $20,000 (it is currently $15,000). Remember, this law regards MINIMUM coverage. If you follow the costs of modern health care at all, you are aware that $25,000 for one individual simply does not go very far. Let’s say, for example, Car A rear ends Car B who is stopped at a red light. Car A has the minimum policy as required by law. Car B has three people in it and each person is injured and incurs more than $20,000 worth of damages, including lost wages, hospital and treatment bills, pain and suffering and loss of normal life. Under the laws required by the state of Illinois, Car A starting in 2015, only has to carry $25,000 in insurance to pay towards all the bodily injuries in Car B. This means that all the individuals in Car B have to split the $25,000 available. The applies even if there is a death in Car B. The law will only require a minimum of $25,000–and that is not until January 2015. It will remain $20,000 until that time.
We’ve discussed before in a prior blog posting that the best way to protect yourself, your family, and your passengers is to carry additional full coverage insurance. That way, if you are injured due to someone else’s negligence, you can pursue additional monies from your underinsured or uninsured motorist policy, often referred to UIM. Having the appropriate limits on your policies also protects you if you are responsible for an accident. If there are significant enough injuries and not enough insurance, an aggressive attorney can go after other assets, including your house, your business and your bank accounts. The policy that you carry also protects your passengers, which can include your spouse, your children or great-grandma. Let’s say that you are driving along a beautiful country road with your spouse and child and a cat darts out in front of you, causing you to swerve off the road and hit a guard rail. Your spouse suffers a head injury and needs to spend two nights in the hospital, and your child end up with a broken arm. These are damages that should be covered by your insurance policy. If you carry only the minimum, these two precious people have to split the $40,000 currently required under the law.
Speak with your insurance agent immediately regarding additional coverage, both in your liability limits, and UIM, and perhaps even a general umbrella policy. Harter & Schottland is not associated with any insurance company or agent. We are not trying to stir up new business for them. We have simply seen too many accidents where accidents resulted in severe injuries–or even death–for Car B (to continue to use that example above) where there was only the minimum policy limits of $20,000. It is heartbreaking.
The post The Load to Carry appeared first on Harter & Schottland.
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