Why is insurance necessary for Illinois drivers? It’s a law that Illinois drivers must have insurance. To protect the public and those who are in an accident, all car owners must have at least the minimum liability coverage. All Chicago area drivers can obtain the recommended coverage at a reasonable price.
What happens if you don’t have insurance? What can the State do?
You have 3 options to get caught in Illinois
1. If you are stopped by police because of a moving violation.
2. You may be involved in an accident with another vehicle or cause damage to property of someone else.
3. The state maintains a database of driver licenses. A computer randomly sends notices by mail to Illinois vehicle owners, asking for proof of insurance.
The renewal form will ask for information about your auto insurance. The state could send you a notice by mail asking for proof of insurance, as stated in #3. You will need the name and policy number of your insurance company. Your license plates may be suspended if you fail to provide proof of insurance when requested by the random selection. If you are pulled over by the police for violating a law, they will first run your plates through the state database. The police will find the plates have been suspended and will fine you $500. You will also be required to pay $100 to reinstate your vehicle registration. If you fail to produce proof, they may seize your vehicle.
What happens if you are caught?
The fine is $500. You must also pay $100 to restore your vehicle registration. An SR-22 policy, which is financial responsibility insurance, allows you to show proof of insurance. Safety Responsibility is spelled SR. Illinois law requires that you have minimum liability insurance.
What happens if you are caught twice?
You will also have to pay a $100 reinstatement fee and show proof of purchase. Your vehicle registration will be suspended for four months. The suspension of your license plates will result in you being unable to drive your vehicle.
What happens if you are not insured and cause an accident?
The other insurance company or the attorney for the other person can sue you. The other person will receive a portion of your wages until you have paid all damages. This is called a wage garnishment. What happens if you have insurance but cause an accident?
Your insurance company will pay for damages caused to another person within the limits of your coverage. Your life circumstances will determine whether you are eligible for a minimum or a maximum amount.
What happens if you are not at fault in an accident?
It depends on whether you have liability coverage only (the state’s minimum limits) and full coverage. Your insurance company will cover damages to your vehicle up to the policy limits. The insurance company will then try to collect your deductible from the other insurance company.
You may also be able to collect directly from another insurance company, provided that the loss was covered by the insurance company and the party admits fault to it.
Chicago driver TIP: Only purchase what you really need. State-required auto insurance is inexpensive.
Insurance coverage will ensure that you aren’t nervous when you drive by or come in contact with a police car, or when you’re pulled over at random checkpoints that take place on holidays weekends.
It’s cheaper to obey the law than paying fines or being at fault for an accident.
These are the minimum Illinois auto coverage requirements: To operate a motor car, you must have these coverage amounts:
$20,000 – Injury or death of one person in an auto accident
$40,000 – Injury or death of more people in an accident
$15,000 – Damage to property of another individual
$20,000 – Injury or death to the named insured, if the other driver is not insure
$40,000 – Injury or death of more people than one driver if the other driver has no insurance
What minimum coverages are legal in Chicago?
Here’s a breakdown
Bodily injury coverage
For injury or death to one person in an accident, the maximum amount is $20,000
For injuries or deaths involving more than one person, the accident insurance policy covers $40,000
Bodily Injury Insurance: Covers bodily injuries to other people caused by an insured driver.
Uninsured motorist coverage
For injury or death to one person in an accident, the maximum amount is $20,000
For injuries or deaths involving more than one person, the accident insurance policy covers $40,000
Uninsured Motorist Insurance: Provides coverage for you and your passengers up to your policy’s limits for injuries, if another driver is at fault and does not have auto insurance.
Property damage coverage
Damage to property owned by another person – o$15,000
Property Damage Insurance: Coverage for damage to property caused by the insured
STOP! The above coverages are sufficient to make you legal. If you do not feel the need, you don’t have to buy the coverages listed below.
Underinsured Motorist Coverage: Provides coverage for you and your family up to your policy limits if another driver is at fault and has auto coverage that is lower than your policy coverage limits.
Medical payments coverage: Covers you and your family for any supplementary medical expenses that arise from an accident. This coverage is usually used to cover injuries sustained by passengers in an auto.
These coverages are typically purchased when you own a newer vehicle and pay monthly car payments. You will need to have Comprehensive and Collision coverage.
Collision insurance: This covers any physical damage to your vehicle that results from contact with another object, such as a car or light pole.
Comprehensive insurance: This coverage protects you in the event that your car is damaged or stolen. Comprehensive insurance would cover damage such as fire or cracked windshields.
Deductible: This is the amount you have to pay before your insurance company starts paying. If your vehicle sustains damage of $1,000, you will need to pay $500. The company will then pay $500. Your premium will drop if your deductible is higher.
Rental Reimbursement is a reimbursement that covers the cost of renting a car for repairs or replacements, or if your car is damaged or destroyed by a covered loss.
Towing: If your vehicle is involved in an accident, you can pay for towing.
The minimum liability insurance coverage in Illinois isn’t too expensive when compared to the consequences of being fined or forced to pay out-of-pocket for an accident that you caused.
Chicago drivers need to make sure they have the right coverage that suits their social and economic needs.
