Chicago Accident Lawyer Blog
Written and Reviewed by Peter Zneimer, Zneimer & Zneimer P.C.
You are stopped at a red light when out of the blue you are rear-ended by an SUV. Your car is badly damaged and you are injured and taken to the the emergency room in an ambulance. The liability is clear that it is the other drivers fault. However, there is one big problem. The other driver is uninsured. The Chicago personal injury lawyers of Zneimer & Zneimer P.C. unfortunately run into this situation quite often. With the cost of auto insurance rising, more people have trouble paying for auto insurance and are choosing to drive with out protection. According to Insurance Research Council (IRC) in 2022, 14 percent of drivers in the USA did not have insurance coverage. In Illinois the number of people driving without insurance is slightly higher, at 16.3%.
In Illinois, driving without insurance is against the law and if you are caught, could lead to a ticket. The fines a Judge can levy may be substantial.
- For a first offense a Judge may rule that the driver:
- Pay a fine ranging from $500 to $1,000.
- May order a license plate suspension until proof of insurance is provided and a reinstatement fee is paid (typically $100).
- Upon subsequent offenses a judge may order the following:
- A fine of at least $1,000.
- A longer suspension periods for your license plate.
- Higher reinstatement fees.
- For driving with suspended plates for lack of insurance:
- A Judge may fine you $1,000 minimum.
When you buy an auto insurance policy from Allstate, State Farm, Progressive, Liberty Mutual or any other auto insurance company, you can pick the policy limit and coverage options that you want. If you own a house and have considerable assets then you want to consider high policy limits to protect your assets in case you badly injure another person while driving. The higher the policy limit, the higher the cost. If you don’t have any assets and are on a tight budget, then you might be limited to getting the minimum policy to comply with Illinois law. The minimum policy to comply with Illinois law has the following coverage:
- Liability Insurance:
- Bodily Injury (BI):
- $25,000 per person for bodily injury.
- $50,000 per accident for bodily injury.
- Property Damage (PD):
- $20,000 per accident for other driver.
- Bodily Injury (BI):
- Uninsured Motorist (UM) (UIM) Coverage:
- Bodily Injury (BI):
- $25,000 per person for uninsured motorist bodily injury.
- $50,000 per accident for uninsured motorist bodily injury.
- Bodily Injury (BI):
Going back to the scenario where you are rear-ended at a stop light and you are badly injured and your car is a total loss and the other driver is uninsured. How will I be compensated for my losses? Under these facts, you will be making a claim against your own uninsured motorist policy. If you only had the minimum coverage required by law, then you would be limited to $25,000. coverage. If your medical bills are other damages are higher than $25,000. you are out of luck. That’s why it is wise to pay for the higher policy limits such as $100,000 or $250,000 if you are able given that there are so may uninsured and under insured drivers in Illinois.
What about the property damage to your car? Will that be covered by the minimum policy? The answer is no. The auto accident lawyers of Zneimer & Zneimer P.C. encounter this situation often. Not only do accident victims have no coverage for property damage with the minimum policy, they may still be making payments on a car that is a total loss. That is why it is a good idea to have coverage for the property damage to your car, especially if your car is expensive or you depend on your car for your livelihood, such as working in the ride-share industry. There are three additional coverage that can be purchased that ride-share lawyers Zneimer & Zneimer P.C. recommend for peace of mind.
Uninsured Property Damage Insurance Coverage
Uninsured property damage (PD) coverage is is for situations as described above to pay for damage to your vehicle if you are hit by a driver who does not have insurance. While Illinois law requires drivers to carry uninsured motorist coverage to cover bodily injury, uninsured property damage coverage is not a mandatory requirement. This coverage is only for cases where an uninsured driver caused the damage. This coverage is relatively inexpensive and should be included when buying a policy.
Comprehensive Insurance Coverage
What if you wake up one morning, get ready to go to work, walk out your front door to your car which you left parked in the front of your house and your car is gone. What coverage do I need to be protected in case of this scenario? Comprehensive insurance coverage protects your vehicle against non-collision-related damage. This coverage will pay for your loss if your car is stolen, damaged by a tree falling, damaged by vandalism, or by a storm. If you live in Chicago, this might be coverage to consider given the large number of cars that are stolen in Chicago, also the number of cars that are broken into or have their catalytic converters stolen. Again, this coverage is more important if you have a high value car or SUV or if your livelihood depends on your vehicle, such as Lyft or Uber drivers.
Collision Insurance Coverage
What if you are driving down an icy road one night and you hit a patch of black ice and you side off the road into a tree? Collision insurance coverage pays for damage to your vehicle resulting from this kind of accident. Collision coverage will cover your loss regardless of who is at fault. If you crash into a telephone pole or are in a crash with another driver and the crash is your fault this coverage will cover the car damage loss. This coverage tends to be expensive since a vehicle owner is highly likely to make a claim against their insurance company for property damage to their car at sometime or other. One way to reduce the premium for this coverage is to have a high deductible, such as $500. If you have a high value car or SUV and/or depend on your car for your livelihood, it is wise to spend the extra for collision insurance. The ride-share lawyers of Zneimer & Zneimer P.C. have had clients who are Uber drivers or Lyft drivers who have lost significant income because their cars where damaged in an accident and they did not have money or collision insurance to fix it or replace it.
If your are in an accident and you have a question about your insurance coverage, call the personal injury lawyers of Zneimer & Zneimer P.C. for a free consultation and we will answer any questions you may have.