What to Know About Underinsured Motorist Coverage in Illinois
Underinsured motorist coverage is an essential aspect of auto insurance that protects drivers in Illinois when they are involved in an accident with a driver who has insufficient insurance coverage to pay for damages. Understanding this type of coverage can significantly affect your financial safety in the event of a collision.
In Illinois, underinsured motorist coverage is not mandatory. However, it can be highly beneficial, as it provides additional financial protection beyond the at-fault driver’s insurance limits. This is particularly important in serious accidents where medical bills, lost wages, and vehicle repair costs can exceed the other driver’s liability coverage.
Underinsured motorist coverage kicks in when the other driver’s liability insurance is not enough to cover the total damages incurred. For example, if you are in an accident and suffer $100,000 in damages but the at-fault driver only has $50,000 in coverage, your underinsured motorist policy can help cover the remaining costs.
There are a few key points that you should keep in mind regarding underinsured motorist coverage in Illinois:
- Coverage Limits: When selecting your underinsured motorist limits, consider your potential expenses in the event of a serious accident. It is advisable to match these limits to your liability coverage for optimal protection.
- Cost of Coverage: The cost of adding underinsured motorist coverage varies by insurance provider and your specific driving history. However, the relatively low expense for added protection can be worth it in case of an accident.
- Stacking Options: Illinois allows for stacking of underinsured motorist coverage if you have multiple vehicles insured under the same policy. This means you can combine the limits of coverage across all your vehicles to increase overall protection.
- Choosing a Deductible: Depending on your insurance policy, you may need to consider a deductible for your underinsured motorist coverage. A higher deductible can lower your premiums but will require you to pay more out of pocket in the event of a claim.
When purchasing or reviewing your auto insurance policy, it is crucial to discuss underinsured motorist coverage with your insurance agent. They can help you understand your options and determine the right amount of coverage for your needs.
In conclusion, underinsured motorist coverage is a wise choice for Illinois drivers seeking financial protection in the event of an accident with an underinsured driver. By being informed and prepared, you can make educated decisions regarding your auto insurance and ensure that you have the necessary coverage to protect yourself and your family.