Why is Liability Insurance so Important?
For over 50 years, United Auto Insurance has helped drivers in Illinois and Indiana stay legal and protected with affordable liability coverage. Liability insurance is one of the most important types of coverage. If you are asking, “Why do I need liability insurance?” This guide covers the reasons, benefits, and details of coverage to help you make an informed decision.
What Is Liability Insurance?
Liability car insurance protects you financially if you are at fault in a car accident. It covers the cost of injuries to others and damage to their property. Every Illinois and Indiana driver must carry liability coverage to operate a vehicle legally.
There are two parts to this coverage:
- Bodily injury liability: Pays for medical bills, pain and suffering, and lost wages of others involved in an accident you caused.
- Property damage liability: Pays for damage to another person’s property, such as their vehicle, fence, or mailbox
Get A Free Quote Now!
Understanding Liability vs. Full Coverage Insurance
Liability insurance only pays for damage and injuries you cause to others, not for your vehicle or your medical costs. In contrast, full coverage typically includes comprehensive and collision protection for your car. Not sure which option fits your situation? Learn the differences between liability and full coverage, including what each protects and when each makes sense, in our complete guide on liability vs full coverage insurance.
What Are the Illinois and Indiana Minimum Liability Requirements?
You must meet the state minimum auto liability insurance requirements to drive legally. These include:
- $25,000 for injury or death of one person
- $50,000 for injury or death of two or more people
- $20,000 for property damage per accident
While these minimums meet legal requirements, they may not fully protect your finances. Many drivers choose higher limits for more peace of mind. If unsure, get a free car insurance quote to compare coverage options that fit your budget and risk tolerance.
Get A Free Quote Now!
Why is Liability Insurance So Important
Liability insurance is required by law, but its importance goes beyond compliance. Accidents happen every day. Without coverage, you’re personally responsible for the full cost of injuries, vehicle repairs, or property damage you cause. This could lead to lawsuits, garnished wages, or financial ruin.
If you're pulled over or involved in a collision without proof of insurance, you risk:
- Fines and penalties
- License suspension or revocation
- Vehicle impoundment
SR-22 insurance may be required to reinstate driving privileges for drivers who have had lapses in coverage or license issues
Benefits of Liability Insurance
Liability coverage offers protection for drivers of all ages and situations. Here’s why it’s worth having:
- Prevents personal financial loss from accidents you cause.
- Helps cover medical expenses for others.
- Pays for repairs to damaged vehicles or property.
- Demonstrates financial responsibility to the state.
- Keeps you compliant with state law.
Need cheap auto insurance that includes state-compliant liability? Our team makes it easy to find coverage that works for you.
Get A Free Quote Now!
What Is Not Covered by Liability Insurance?
However, liability insurance does not cover your expenses if you're in an accident. It won't pay for:
- Damage to your vehicle.
- Your medical bills.
- Theft, vandalism, or weather-related damage.
If you want protection for your car or medical costs, consider full coverage that includes collision and comprehensive coverage.
How Much Liability Coverage Should I Have?
State minimums are the legal starting point, but they might not be enough to cover a serious accident fully. You must pay the rest out of pocket if damages exceed your coverage limits. Many financial experts recommend higher liability limits, especially if you own assets or drive frequently.
Who Needs Liability Insurance?
Liability insurance is necessary for:
- Drivers of any age operating a registered vehicle.
- Car owners in Illinois or Indiana.
- Individuals required to show proof of insurance for legal or employment reasons.
Even drivers with minimal driving history or a tight budget can find affordable policies. Speak with our licensed representatives at United Auto Insurance for help selecting a plan. Call us today at 773-202-5000.
Get A Free Quote Now!
Get a Free Liability Insurance Quote from United Auto Insurance
United Auto Insurance provides trusted, affordable coverage for drivers throughout Illinois and Indiana. Whether you're looking for basic liability or enhanced protection, we’re here to help.
Need help deciding what coverage best suits your needs? Call or click today: 773-202-5000.
Get Liabiliity Coverage Today!