Illinois’ car insurance laws, like most other states in the United States of America, have mandatory minimums. This rule is only applicable to three states: Mississippi, New Hampshire, and Virginia. Drivers in every other state must have the right type and amount of insurance to drive. According to the Insurance Information Institute, approximately 13% Illinois drivers were not insured in 2015.
Illinois law requires that a minimum amount of auto insurance coverage be in place for a vehicle to be legally driven. These minimums are required to make sure that drivers have enough insurance coverage to cover the financial consequences of an auto accident. Drivers who don’t have insurance can end up owing more than they can afford due to car accidents. Many states have minimum auto insurance requirements to address this risk.
Car insurance laws in Illinois
Illinois’s car insurance requirements include two main components. Each policy type must provide specific coverages. Minimums are set by the state. These laws require drivers to have at least these coverages.
The first, liability coverage, can be broken down into two categories: property damage and bodily injury. Uninsured motorist coverage Illinois is the second type. This insurance is required to cover the possibility of an accident involving a driver who is not insured.
Liability Coverage:
- Bodily Injury: $25,000 per Person and $50,000 per Accident
- Property damage: $20,000 per accident
Coverage for bodily injuries to uninsured motorists:
- $25,000 per person, $50,000 per accident
Illinois law also requires you to have underinsured bodily injury insurance if you buy higher limits of uninsured motorist bodily injury coverage. This insurance covers you in the event that another driver is at fault, but not enough to cover your damages.
Illinois liability insurance
Standard liability coverage is the main focus of Illinois’ car insurance laws. Although Illinois’ minimum liability coverage requirements are the minimum allowed, they may not be sufficient. Liability coverage covers damages to other people or vehicles. This coverage does not pay towards the person who is covered. If there is an accident, the liability coverage for an at-fault driver will cover the cost of the vehicle repairs and medical bills of the other driver.
These state minimums may not be sufficient to cover all costs associated with an accident. If the insurance coverage of an at-fault driver is not sufficient to cover accident expenses, they may be sued. Some people opt for higher limits than the minimum Illinois auto insurance.
For example, driver A may have the minimum state insurance and get into a collision. Driver B is at fault. Driver A totals driver B. Driver A’s insurance coverage doesn’t cover the $40,000 cost of driver B’s vehicle. Driver A could be in line to pay the difference between the amount they paid and the amount the other driver owes.
Is Illinois a state of no fault?
Illinois is a state at fault. Illinois, like most states holds the driver responsible for an accident that causes it financially and legally liable. This is a direct result of the problems many drivers have with state-mandated insurance requirements. Drivers in Illinois, which is an at-fault state can be held liable for additional costs beyond their insurance limits.
Driving without insurance in Illinois carries severe penalties
Driving without insurance in Illinois is a violation of four laws:
- A suspension of the driver’s license or vehicle registration could be possible.
- A fine up to $1,000 can be imposed.
- Reinstatement of license or registration requires payment of $100
- Repetition offenses could result in increased penalties and fines.
Additional options for Illinois auto insurance
There are many auto insurance coverage options beyond the minimum state requirements. Although averages are provided where possible, the actual prices of plans and add-ons may vary between companies and policies depending upon a variety of factors.
Collision
Collision insurance covers you if an accident happens while driving. Let’s say you’re driving your car when you get in an accident with another vehicle. Collision insurance will pay for damages to your vehicle even if you are at fault. The Insurance Information Institute (iii) estimates that collision insurance is $290 per annum.
Comprehensive
Comprehensive car insurance covers your vehicle in the event of an accident that occurs while you are not driving. This policy type, unlike collision, covers damage that occurs when the vehicle is not being used. Comprehensive auto insurance is $134 per annum, on average.
Gap coverage
This covers the difference between the amount owed and the amount paid off for a leased vehicle. If you have paid half the car off, and you end up totaling your vehicle, you can imagine that this is what you will pay. Gap coverage would cover the remainder of that car’s value. To supplement policies with comprehensive and collision coverage, gap coverage is available for as low as $20 per annum.
Custom equipment
Car insurance with custom equipment covers non-factory components in the event of an accident. This policy will not have much or any effect on many cars. This policy may cover repairs for custom parts on vehicles. The cost of this add-on is usually a small percentage of the part’s value.
Medical payments
The state minimum insurance does not cover medical expenses. A medical payments policy provides coverage for you and your passengers. These policies come in a variety of prices. These policies can cost as little as $1 per 1,000 in coverage, or as much as $8 per month for $1,000.
A frequently asked question
Which is the best auto insurance company?
It’s difficult to choose the best auto insurance company when there are so many factors at play. Bankrate’s guide to the Best Car Insurance Companies in 2020 is a better choice.
Is standard liability coverage sufficient?
Standard liability is sufficient for some accidents. For others, however, standard liability is too little. The minimum amount of $20,000 in property damage or $50,000 in bodily injury if you are at fault for an accident will not suffice.
How can I get car insurance at a lower rate?
Discounts are offered by many car insurance companies. Your insurer may offer discounts for safe driving, vehicle safety features and automated online payments. To find out which discounts may be available, contact your insurer or visit the discount section on their website.
