A personal injury victim comes to our office. He was crossing the road in a crosswalk when a driver failed to stop and plows into him. He has a fractured hip with surgery and has over $100,000 in medical bills alone. It sounds like a strong case. Expect there is one major problem. The driver only has $25,000.00 in liability coverage; the minimum coverage allowed in the state of Illinois. The victim does not drive a car so does not have under-insured motorist insurance coverage. Unfortunately, this is a scenario that the personal injury lawyers of Zneimer & Zneimer P.C. encounter quite often. Perhaps it is time that the mandatory minimums are raised to keep up with inflation.
Illinois’ current minimum liability coverage requires drivers to carry only $25,000 per person for bodily injury and $50,000 per accident. These limits were last adjusted in 2015, when they rose from $20,000, a figure that had been in place since 1990.
That means in over 30 years, the state has increased coverage by only $5,000—just a 25% increase. During the same period, the Consumer Price Index (CPI) has soared by over 169%, according to U.S. Bureau of Labor Statistics data. In other words, a $20,000 policy in 1990 would need to be over $53,000 today just to keep up with general inflation. And that doesn’t even account for skyrocketing medical costs.
Medical expenses have far outpaced inflation. Since 1990, medical care costs have increased by an average of 3.66% per year, compared to an overall CPI average of 2.58%. A hospital bill that cost $788 in 1990 now costs over $2,775—more than 3.5 times as much.
Nationally, healthcare spending grew from around $1.4 trillion in 2000 to nearly $4.9 trillion in 2023, highlighting the exponential growth in treatment costs. Meanwhile, ambulance rides can exceed $3,000, and a typical ER visit often ranges between $5,000 and $15,000.
Today, a serious injury can easily result in medical bills totaling $50,000–$100,000 or more. With Illinois’ current $25,000 minimum, victims often find themselves limited to a minuscule recovery and not even close to being made whole, which is the whole point of insurance in the first place.
There is, understandably, resistance from some corners. Insurers warn that increasing coverage could lead to higher premiums, particularly for lower-income drivers. Some lawmakers are wary of increasing costs for constituents already struggling to afford basic insurance and could lead to more drivers driving without insurance. These are legitimate concerns. However, if a person drives a car and causes damage to another person because of their own negligence, they should have insurance coverage that can provide meaningful compensation to the injured person.
If you have been in an accident and have been injured and there is an insurance coverage issue, you can call the Chicago personal injury lawyers of Zneimer & Zneimer P.C. for a free consultation.