How Much Insurance Do I Need? A Guide to Protecting Yourself and How VanDerGinst Law’s Attorneys Can Help
Deciding how much car insurance coverage to buy can be a tricky decision. While the law requires certain minimums, these may not be enough to protect you fully in the event of an accident. With the potential for medical bills, vehicle repairs, and legal claims, having the right amount of insurance is essential for your financial security. At VanDerGinst Law, our experienced auto insurance lawyers can help you understand your coverage needs and assist you if you’ve been involved in an accident.
Here’s a guide to how much insurance you need, the different types of coverage available, and how a personal injury attorney at VanDerGinst Law can help you navigate insurance claims after an accident.
Minimum Liability Insurance Requirements
In most states, including Illinois and Iowa, drivers are required to carry liability insurance to cover damages or injuries they cause to others. While each state sets its own minimums, these minimum requirements may not be enough to cover the full cost of an accident. In Illinois, for example, the minimum liability coverage required is:
- $25,000 for bodily injury per person
- $50,000 for bodily injury per accident
- $20,000 for property damage
While this satisfies legal requirements, it may not fully protect you if you’re involved in a serious accident. If the damages exceed your coverage limits, you could be held personally responsible for the remaining costs. 
How Much Liability Insurance Should You Carry?
The minimum coverage is often insufficient in serious accidents. Here’s why you may want to consider purchasing higher liability limits:
- Medical Costs Can Add Up Quickly: In a serious accident, medical bills for injuries can easily exceed $25,000 per person. If you only carry the minimum, you could end up paying out of pocket.
- Property Damage is Expensive: Repairing or replacing a new or luxury vehicle can quickly surpass the $20,000 minimum for property damage. Higher coverage ensures you don’t have to cover these costs yourself.
- Legal Costs: If you’re sued after an accident, your liability insurance will cover your legal defense. However, with low coverage limits, you might be left vulnerable to lawsuits that exceed your policy.
At VanDerGinst Law, our auto insurance lawyers recommend carrying higher liability limits to ensure full protection. This way, you safeguard your assets and future income against claims that might exceed the minimum requirements.
Uninsured and Underinsured Motorist Coverage
Uninsured motorist (UM) coverage and underinsured motorist (UIM) coverage protect you if you’re hit by a driver who doesn’t have insurance or whose coverage isn’t enough to pay for your damages. In Illinois and Iowa, these coverages are required, but the minimums may not be enough.
Here’s why you might want to carry more than the minimum UM/UIM coverage:
- Many Drivers are Uninsured or Underinsured: According to the Insurance Research Council, 1 in 8 drivers on the road is uninsured. Even if the at-fault driver has insurance, their coverage may be too low to cover your medical expenses and vehicle repairs.
- Medical and Vehicle Costs Can Be Substantial: If you’re seriously injured or your vehicle is totaled, the minimum UM/UIM coverage may not be enough to compensate you. Higher limits provide extra security.
Our uninsured motorist attorneys at VanDerGinst Law can help you understand how much UM/UIM coverage is appropriate based on your risk and financial situation.
Comprehensive and Collision Insurance
While liability insurance protects others from damages you cause, comprehensive and collision coverage protect your own vehicle. These coverages are especially important if you drive a newer or more expensive car or if you rely heavily on your vehicle for work or personal needs.
- Comprehensive Insurance: Covers damages to your car from theft, vandalism, natural disasters, or other non-collision incidents.
- Collision Insurance: Covers damages to your car from collisions with other vehicles or objects.
If you lease or finance your car, your lender may require you to carry both comprehensive and collision insurance. Even if you own your car outright, these coverages provide valuable protection, especially if you don’t want to pay out of pocket for repairs or replacement after an accident.
Medical Payments and Personal Injury Protection (PIP) Coverage
Medical Payments (MedPay) and Personal Injury Protection (PIP) coverage help pay for medical expenses after an accident, regardless of who is at fault. These coverages are optional in some states but are highly recommended.
- Medical Payments Coverage: Helps cover medical bills for you and your passengers after an accident.
- PIP Coverage: Provides broader protection, covering medical expenses, lost wages, and other related costs.
If you’re injured in an accident, these coverages can be crucial in helping you avoid out-of-pocket expenses for medical care. A personal injury attorney at VanDerGinst Law can help you understand how MedPay and PIP coverage can protect you and ensure you receive compensation if you’re injured.
How Much Insurance Do You Really Need?
The amount of insurance you need depends on several factors, including your assets, income, and driving habits. Here are a few guidelines:
- Consider Your Assets: If you own a home, have significant savings, or have other valuable assets, higher liability limits are essential to protect you from lawsuits.
- Factor in Your Vehicle’s Value: If your car is expensive to repair or replace, comprehensive and collision coverage with higher limits is a good investment.
- Think About Your Health Coverage: If your health insurance doesn’t fully cover injuries from a car accident, higher PIP or MedPay limits can help cover medical bills.
- Evaluate Your Risk: If you drive frequently, in high-traffic areas, or in regions with a high rate of uninsured drivers, additional UM/UIM coverage is a smart move.
How VanDerGinst Law’s Auto Insurance Attorneys Can Help
At VanDerGinst Law, we understand that navigating insurance policies and deciding how much coverage you need can be overwhelming. Our skilled auto insurance lawyers can help you:
- Evaluate Your Insurance Needs: We’ll review your current policy and recommend the appropriate coverage levels based on your situation.
- Assist with Claims: If you’ve been in an accident, we’ll handle the claims process and negotiate with the insurance company to ensure you get the compensation you deserve.
- Protect Your Rights: If an insurance company denies your claim or offers a low settlement, we’ll fight to protect your rights and maximize your recovery.
Contact VanDerGinst Law’s Auto Insurance Attorneys Today
If you’re unsure about how much insurance you need or if you’ve been in an accident and need help with an insurance claim, contact the experienced auto insurance attorneys at VanDerGinst Law today for a free consultation. We’ll review your policy, help you understand your options, and guide you through the claims process.
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