Illinois drivers are required by law to carry liability coverage. Liability insurance covers medical, legal, and property damage expenses caused by negligence. Often, family members and others given permission to drive your vehicle are covered by your liability insurance.

Bodily injury coverage is part of liability insurance. Drivers in the state of Illinois must have at least $20,000 of bodily injury (BI) coverage to cover the costs of injury or death to the driver or passengers in other vehicles. Sometimes BI coverage will pay for expenses related to the injury or death of someone in your own car, as long as they do not live with you.

Property damage (PD) is the other part of liability coverage. It pays for damage you or someone driving your car caused to another vehicle or structure. Illinois drivers must have $15,000 worth of this type of coverage per accident.

Uninsured Motorist Bodily Injury Coverage (UM) protects you from uninsured drivers or hit-and-run accidents. In Illinois, you will need $40,000 per accident and $20,000 per person.

Underinsured Motorist Bodily Injury Insurance (UIM) fills the gap between your uninsured motorist coverage and the other (at-fault) driver's liability coverage. This coverage is used when the other driver's liability limits are lower than your UM limits.

While these amounts are enough to keep you legal, you may want more coverage to protect yourself from major accidents.

Since Illinois is a large state with diverse rural and urban populations, rates vary widely. Coverage minimums apply statewide. However, you should analyze the actual amounts needed to protect yourself and others who drive your vehicle from financial liability.

Those living in cities have a higher statistical probability of being involved in an accident, which may affect the deductible you choose. However, rural dwellers have an increased likelihood of hitting deer and other animals, which can be costly as well. Talk with your agent about how much coverage is ideal for you. Whether you live in Chicagoland, the southern tip of the state, or somewhere in between, meeting Illinois auto insurance requirements is not only legally necessary, but will protect you from financial devastation in the event of an accident.