Why buy auto insurance?
First of all, Illinois requires that all drivers carry minimum liability and uninsured motorist coverage. Liability covers the damages and bodily injury that you may be responsible for while uninsured motorist covers injuries, lost wages, and permanent and lasting disablement or disfigurement. The coverage that Illinois requires is $25,000 person bodily injury, $50,000 per occurrence or if multiple individuals are injured, and $20,000 of property damage coverage.
What are the chances that if you cause a serious accident that your claim my exceed $20,000 for the other persons injuries? Almost certain!
Do you have the assets to pay the difference plus the additional legal fees to settle the claim? Do you want to pay the balance over 5-10 years?
I want to help you determine the amount of liability that you should carry. How much do you have to lose? All of your assets and part of your paycheck till age 65. Yes, age 65. I helped settle a payback for an accident that required that the person pay about $100/mo until age 65. At that rate he would not even pay the interest that would be due on the settlement.