Liability Insurance — Illinois
Liability insurance pays for injuries and property damage you cause to others in an accident — it does not cover your own vehicle or medical bills.
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What Is Liability Insurance Insurance?
Liability insurance is the foundation of every auto policy in Illinois. It covers bodily injury and property damage you cause to other people when you're at fault in an accident. Bodily injury liability pays for medical expenses, lost wages, and legal fees if you injure someone. Property damage liability covers repairs to another driver's vehicle, fence, building, or other property you damage.
Who Needs Liability Insurance Insurance?
Every driver in Illinois is required by law to carry liability insurance, and it's the first coverage you should secure before registering a vehicle or renewing your license. If you own a home, have significant savings, or could be sued for assets, carry limits well above the state minimum — 100/300/100 or higher — to protect what you've built.
If you have assets worth protecting or earn a steady income, carry liability limits high enough that a lawsuit won't wipe you out. If you're judgment-proof with no assets and minimum income, state minimums meet the legal requirement, but you're exposed to wage garnishment and financial ruin if you cause a serious crash.
How Much Does Liability Insurance Insurance Cost?
- Your driving record — one at-fault accident can raise liability premiums 20 to 40 percent for three years.
- Where you live in Illinois — Chicago drivers pay 30 to 50 percent more than rural county drivers due to accident frequency and claim costs.
- Your age and experience — drivers under 25 and over 70 face higher liability rates due to statistically higher at-fault accident rates.
- Your credit-based insurance score — Illinois allows insurers to use credit history, and a poor score can double your liability premium.
