At John J. Malm & Associates, we often hear from clients who say, “Don’t worry — the other driver had full coverage.” Unfortunately, “full coverage” is one of the most misunderstood terms in the world of auto insurance, and it can lead to serious confusion — especially after a car accident.
In this blog, we explain what “full coverage” really means (and doesn’t mean), how it affects your ability to recover damages after a crash, and what Illinois drivers need to know to protect themselves and their claims.
What Is “Full Coverage” Car Insurance?
Despite how it sounds, there is no such thing as truly “full” coverage in Illinois — or in any other state. “Full coverage” is not a specific policy or a legal term. Instead, it’s a common phrase used by drivers or insurance agents to describe a combination of legally required liability coverage and optional protections, including:
- Liability insurance (required in Illinois)
- Collision coverage (optional)
- Comprehensive coverage (optional)
- Uninsured/underinsured motorist coverage (required in part)
- Medical payments coverage (optional)
- Rental reimbursement (optional)
In most cases, when someone says they have “full coverage,” they mean they have liability, collision, and comprehensive coverage — but this doesn’t guarantee that your losses will be fully covered after a serious accident.
Illinois Minimum Car Insurance Requirements
Illinois law requires all drivers to carry liability insurance, which pays for injuries or property damage you cause to others in a crash. As of 2025, the minimum limits under the Illinois Vehicle Code (625 ILCS 5/7-601) are:
- $25,000 for injury or death of one person
- $50,000 for injury or death of two or more people
- $20,000 for damage to another person’s property
In addition, Illinois mandates uninsured motorist (UM) coverage in amounts equal to the bodily injury liability limits (625 ILCS 5/143a). This coverage protects you if you’re hit by a driver with no insurance.
However, these are just minimums. In many serious car accidents, these limits don’t come close to covering the total damages — which may include medical bills, lost income, vehicle damage, and pain and suffering.
What “Full Coverage” Often Misses
“Full coverage” may sound reassuring, but the term can be dangerously misleading. Here’s what it often doesn’t include:
- Adequate policy limits
Many “full coverage” policies still carry only minimum liability limits — which may not be enough to fully compensate an injured person after a crash. For example, if a negligent driver with $25,000 in bodily injury coverage causes a collision that results in $100,000 in damages, you may only recover a fraction of what you’re owed from their insurance.
- Underinsured Motorist (UIM) Coverage
Illinois requires uninsured motorist coverage, but underinsured motorist coverage (UIM) is only required if you purchase limits higher than the state minimum. UIM coverage steps in when the at-fault driver has insurance, but not enough to cover your losses — and many drivers don’t realize their UIM limits are insufficient until it’s too late.
- Medical Payments (“MedPay”) Coverage
MedPay is optional in Illinois and pays for your own medical bills, regardless of fault. Many “full coverage” policies do not include MedPay, which can help cover ER visits, ambulance bills, or co-pays while a liability claim is pending.
- Rental or Towing Reimbursement
You may assume “full coverage” means your rental car or towing costs are covered — but unless those coverages are added specifically, they’re often excluded.
- Gap Insurance
If your car is financed or leased and totaled in an accident, “full coverage” may still not pay off the full loan balance. Gap insurance, which pays the difference between the loan balance and the actual cash value of the car, is not included unless purchased separately.
Why This Matters in a Car Accident Claim
- The Other Driver’s Insurance May Be Inadequate
After a car accident, you’ll typically file a claim with the at-fault driver’s car insurance company. But if that driver only has minimum coverage, there may not be enough to pay for your medical expenses or property damage.
This is especially problematic in serious injury cases, which can involve:
- Hospitalization and surgery
- Physical therapy
- Lost wages from missed work
- Long-term disability or disfigurement
If the other driver has “full coverage” but only $25,000 in liability limits, you may need to turn to your UIM coverage (if you have it).
- You Might Be Stuck with Your Own Medical Bills
Unless you have MedPay, health insurance, or a strong UIM policy, you may be responsible for paying your own medical bills up front — even if the other driver was 100% at fault. Some victims wait months or even years for liability insurance to settle, leaving them in financial distress.
Example: When “Full Coverage” Isn’t Enough
Let’s say you’re hit by a driver who says, “Don’t worry, I have full coverage.”
Here’s what could happen:
- The driver’s policy has $25,000 bodily injury coverage.
- Your medical bills total $75,000.
- Your vehicle is totaled, but the driver only has $20,000 in property damage coverage.
- Your UIM coverage is also limited to $25,000.
In this scenario, even though both drivers have “full coverage,” you could be left with tens of thousands of dollars in unpaid damages and medical bills — unless you take legal action or have purchased additional coverage.
What Drivers Should Do to Protect Themselves in Case of a Serious Car Crash
To protect yourself, it’s essential to review your own auto policy and make sure it includes:
Higher Liability Limits
The minimums are not enough. We recommend at least $100,000/$300,000 in bodily injury coverage and $100,000 in property damage coverage.
Uninsured/Underinsured Motorist Coverage
UM and UIM coverage should match your liability limits. This ensures that if you’re hit by someone with little or no insurance, you can still recover for your injuries.
Medical Payments Coverage
MedPay can provide quick reimbursement for medical expenses while your claim is pending. Even a small MedPay policy (e.g., $5,000 or $10,000) can help.
Collision and Comprehensive
These cover your own vehicle in case of a crash, theft, fire, or storm damage — regardless of fault.
Rental and Towing Coverage
This is especially important if you rely on your vehicle daily and can’t afford to be without transportation after an accident.
Common Myths About “Full Coverage” Insurance
Let’s debunk a few common myths about “full coverage” car insurance:
“Full coverage means I’m fully protected.”
No — full coverage is a vague term and often doesn’t include UIM, MedPay, or enough liability limits.
“If I have full coverage, I don’t need to worry about the other driver’s insurance.”
Wrong — if the other driver is uninsured or underinsured, your own policy may be the only source of compensation.
“The insurance company will pay for everything.”
Insurers only pay up to the policy limits — and only if liability is clear. Coverage disputes and claim denials are common, especially in serious accidents.
How a Naperville Car Accident Lawyer Can Help
At John J. Malm & Associates, our Naperville personal injury attorneys understand the complexities of insurance coverage in Illinois. We help injured drivers navigate the maze of liability claims, uninsured motorist claims, health insurance liens, and policy exclusions.
Our firm can:
- Investigate the insurance policies involved
- Identify underinsured or uninsured motorists
- Handle claim denials and coverage disputes
- File lawsuits if necessary to recover full compensation
- Negotiate with health insurers and hospitals on lien reductions
Contact the Top-Rated Naperville Car Accident Lawyers at John J. Malm & Associates
“Full coverage” is a marketing term — not a guarantee of financial protection after a car crash. In Illinois, the limits of your policy and the other driver’s insurance will determine how much compensation you can recover.
If you’ve been in a car accident and are dealing with confusing insurance policies or low settlement offers, don’t go it alone. Our legal team is here to advocate for your rights and fight for the compensation you deserve.
At John J. Malm & Associates, we offer free consultations to injured drivers across Illinois. We’ll review your accident, examine the insurance coverage involved, and help you make an informed decision. Call us at (630) 527-4177 or visit www.malmlegal.com to get started.