Illinois vehicle insurance
Overview: Having a minimum motor vehicle insurance coverage is mandatory in Illinois which is no surprise considering the increasing number of accidents and injuries and loss of life and property associated with them. In fact, even having bare minimum auto coverage will not make you feel safe and hence you should have as much auto insurance as you can afford and feel safe with. As per the law prevailing in Illinois, all motor vehicle that are driven and must carry license plates should carry enough liability insurance. This holds good for cars, vans, motorcycles, recreational vehicles, trucks and buses. Trailers are excluded from the list of vehicles that require liability insurance.
The minimum motor vehicle insurance required in Illinois
Liability coverage
Bodily injury liability & property damage liability: Bodily damage liability coverage provides protection to your assets in the event if you are held responsible for an accident in which other people get hurt or lose their lives. Property damage liability coverage pays for the damage and loss of property of other people if the insured person happens to be the guilty party.
A driver in Illinois is required to have at least $25,000 worth bodily injury cover for a single injured person, $50,000 for injuries occurring to 2 or more persons and $25,000 worth property damage liability coverage for damages resulting from a single accident. However, as mentioned earlier, you may purchase for more according to your need and affordability.
Exclusions:
In certain situations the above coverages may not apply. These include the following.
If injury or damage to property occurs when your vehicle is carrying people or property in return for a charge.
If injury or damage is caused intentionally.
If the damage or injury is caused to a vehicle that is not listed on your policy, though the owner of the vehicle may be covered by your auto insurance policy.
If either yourself or your family member gets killed or hurt.
If the property is either owned or controlled by the insured.
Uninsured / under insured motorist coverage: According to the Illinois auto law, the limits for this coverage would be the same as that for your bodily injury coverage.
Uninsured motorist coverage : This is the maximum amount that an auto insurance provider pays in case of bodily injury or death to the insured or his/her family members and the passengers in the vehicle in a accident caused by a driver who is at fault but not having an insurance.
Under insured motorist coverage: This is the maximum amount that an auto insurance provider pays in case of bodily injury or death to the insured or his/her family members and the passengers in the vehicle in an accident caused by a driver who is at fault but not having enough insurance.
Penalties and fines
Lack of proof of enough auto insurance while driving may invite suspension of your vehicles' license plates, until you produce the evidence of you having proper coverage. The fee for reinstating your license is $100. For a second time offense though, the license will be suspended for a minimum of four months.
To get your license reinstated, you may either visit the secretary of state facility in your area or you may get it processed by sending the fee and proof of your vehicle insurance to the following address:
Office of the secretary of state
Mandatory Insurance Division
501 S. 2nd St. room no. 429
Springfield, Illinois 62756-7000
Exceptions:
If your vehicle transports people or property in return for a fee.
If the vehicle is used without the consent of you or your relative.
If you drive a vehicle that is owned by someone else without his/her permission.
Factors affecting auto insurance rates in Illinois:
In Illinois, your credit history may be used to determine how much you have to pay for your auto insurance. It may also be used to decide your mode of payment, whether one time, monthly or quarterly, as well. The auto insurance providers in Illinois may also check your credit history and calculate what is called an insurance risk score', which could be used as a guideline in deciding your auto insurance costs.
Making your bill payments in time helps to improve your credit score which in turn help you pay less on your auto insurance.
Generally, auto insurance providers increase your auto insurance rate, in case an accident occurs, by up to 40 %. Therefore, being a driver free of any traffic violation or accident will go a long way in helping you cut down your auto insurance expenses. Also, choosing an auto insurance provider who offers to relax the rate hike for the first accident that your vehicle is involved, may also help in reducing you auto insurance rate in Illinois.
The premium of your auto insurance in Illinois may also depend on the type of your vehicle. The auto insurance premium for cars is based on the ratings on a scale from 3 to 27. This means that higher the number of your vehicle, higher will be your auto premium. So, it won't be a bad idea if you contact an insurance company to get an idea of how much insurance will be needed for a vehicle that you intend to purchase.
For further information, you may contact the consumer services division of the Illinois department of insurance in the following address.
Illinois department of insurance
Consumer Services Division
320 W. Washington Street
4th Floor
Spring field, IL 62767
Phone: (217) 782-4515
Other Articles
