Thanks for the feedback, Adrock. There's a local off-road park around here, but I live in the Chicago suburbs. It's mostly flat out here. I'm just concerned about running a lift with 35s with the 3:21 gears and my ex-husband says I might wear down mud tires with the commute. I work 17 miles from home, but as of June 2, I'll be unemployed until I find something else, so I'm not too concerned about that.
Last year the shop quoted me the budget boost which isn't coils, I don't believe. They have another 2.5" lift that is coils for about $200 more. I put an email into the shop to see if I can get factory take offs from him for free or cheap to repair the damage from the accident and then do a lift with wheels and tires with the insurance money instead.
You're welcome. I have been in your boat before when the wife had the Jeep and now I'm on the far other end of the spectrum (axle swap - 1 tons, hydro, coilovers, etc. - major off-road performance gear).
If you drive snow in Chicago area and don't plan to do much off-roading, why would you want mud terrains? I would advise against that. Get some AT or in-between tires (like the Toyo RTs - between the ATs and the MTs). You'll be slippers on big tread blocks with MTs unless you buy them or have them siped. Plus non-MT tires will have better tread life and a warranty (like the Toyo RTs have 40k mile guarantee).
Here's the lift I'd recommend for just street use clearing 35s. You can off-road with it safely, with slightly better than stock performance (given the 35s), but from your description I doubt you need much more right now (or want to break the budget to get there).
If you need new shocks, you can get that same lift above with longer, new shocks instead for an additional cost.
I would advise coils over just extensions. I think you get a touch more lift, a bit better ride, and slight better off-road performance for the small cost.
We did 35s on 3.73 gears for a long time without any drama. 3.21 is def pushing it for 35s and will feel a bit sluggish, but that part is totally up to you the driver. Depends how many hills, how much highway, your needs to move quick from a stop, etc. Off-road will also not be as effective in 4 low with this tire/gear combo.
I know they don't look nearly as nice of an overall package, but 33's will certainly fit easier, less risk to rub or contact the pinch seam, and drive a lot nicer on 3.21 gears...
It's an expensive and never-ending rabbit hole if you get dragged in...enjoy the ride!