NEW LAWS: Motor Vehicle Insurance Coverage

Two updated Insurance laws go into effect on January 1, 2015 in Illinois.

Changes to an existing law raises the minimum mandatory coverage for automobile liability insurance. Coverage amounts for bodily injury or death to any one person is increased from $20,000 to $25,000; bodily injury or death to more than one person from $40,000 to $50,000; and injury or destruction of property of others from $15,000 to $20,000.

Another law increases the amount of damages necessary for binding arbitration in uninsured motorist and hit-and-run motor vehicle cases.  Currently, arbitrator’s decisions are only binding for damages not exceeding $50,000 for bodily injury or death of any person and $100,000 for bodily injury or death of two more persons.  For damages not reaching that threshold, an insurance carrier can require an insured to reject the arbitration and file a complaint in circuit court for the same issues.  This legislation increased those limits to $75,000 for bodily injury/ death of one person and $150,000 for bodily injury/death of two persons.