Why You Should Avoid Substandard Insurance in Illinois: Protecting Your Future

You’ve seen the ads on TV: catchy jingles and promises of low, low prices. Promises of coverage and great service. When it comes to auto insurance, opting for the cheapest policy may seem like a good idea at the time. However, substandard insurance can leave you financially vulnerable and inadequately protected in the event of an accident. As a trusted personal injury law firm in Chicago, we’re here to explain why avoiding substandard insurance is crucial for your financial security and peace of mind.

What is Substandard Insurance?

Substandard insurance refers to auto insurance policies that offer minimal coverage at a low cost. These policies often meet only the bare minimum legal requirements and may exclude important protections such as comprehensive, collision, uninsured motorist (UM), and underinsured motorist (UIM) coverage. While the initial premiums may be lower, the long-term consequences of inadequate coverage can be costly.

Key Reasons to Avoid Substandard Insurance

1. Insufficient Liability Coverage: In Illinois, the minimum liability coverage limits are $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $20,000 for property damage. These amounts may not be sufficient to cover the costs of a serious accident, leaving you personally responsible for the remaining expenses. Opting for higher liability limits provides better protection against significant financial loss.
2. Lack of Comprehensive and Collision Coverage: Substandard policies often exclude comprehensive and collision coverage, which pay for damages to your own vehicle. Without these coverages, you could be left paying out-of-pocket for repairs or replacement of your vehicle after an accident, theft, or natural disaster.
3. No Uninsured/Underinsured Motorist Coverage: Illinois requires insurance companies to offer UM and UIM coverage, but substandard policies may not provide adequate limits. These coverages protect you if you’re hit by an uninsured or underinsured driver. Without sufficient UM/UIM coverage, you could struggle to cover medical expenses, lost wages, and other damages if the at-fault driver lacks adequate insurance.
4. Higher Out-of-Pocket Costs: Substandard insurance policies often come with high deductibles and limited coverage options, resulting in higher out-of-pocket costs when you file a claim. In the long run, the money saved on lower premiums may not offset the financial burden of these higher expenses.
5. Poor Claims Handling: This is probably the most important reason to avoid substandard Insurance. Insurance companies offering substandard policies may have a reputation for poor customer service and claims handling. Delays, denied claims, and insufficient settlements can add stress and frustration during an already difficult time. Choosing a reputable insurance provider with a solid track record ensures better support and a smoother claims process. We have dealt with hundreds of claims against substandard carriers, which have created numerous unnecessary headaches for our clients.
6. Legal and Financial Risks: Driving with substandard insurance increases your risk of facing legal and financial consequences. If your coverage is insufficient to pay for the damages you cause in an accident, you could be sued for the remaining costs. This can result in wage garnishment, asset seizure, and long-term financial hardship. If you don’t want to get served with a summons and complaint, avoid substandard insurance carriers.
7. Peace of Mind: Comprehensive and adequate insurance coverage provides peace of mind, knowing that you’re protected against unforeseen events. Investing in a higher-quality policy ensures that you and your loved ones are financially secure, allowing you to focus on recovery and well-being after an accident.

Conclusion

While substandard insurance may seem like a cost-effective choice, the potential risks and financial consequences far outweigh the short-term savings. Adequate insurance coverage is essential for protecting your financial future and ensuring that you receive the support you need in the event of an accident. If you have questions about your insurance coverage or need assistance with a claim, our experienced personal injury lawyers in Chicago are here to help. Contact us today for a free consultation and let us guide you toward the best path for securing your financial and legal well-being.