Illinois Car Insurance Laws

Auto insurance companies make a lot of money each year because people want to protect themselves from potential financial hardship. Many people get assistance from insurance companies that help them stay out of bankruptcy by paying for expensive claims due to accidents they are found to be at fault for. Also, driving legally in the state of Illinois means that drivers must carry certain minimum limits of insurance coverage.

Car insurance plans not only protect you, but they also protect other drivers. Illinois is a no-fault state. This means whoever is deemed responsible for the accident is also responsible for covering the damages. The state requires that all drivers have valid proof of insurance to prove they are carrying the required amount of car insurance coverage. Drivers who cannot provide proof of insurance can face harsh penalties.

Auto Insurance Requirements In Illinois

Illinois requires that people have both minimum amounts of liability coverage as well as minimum amounts of uninsured/underinsured motorist coverage. The minimum amount of coverage required for liability coverage is $25,000 bodily injury per person, $50,000 bodily injury per accident, and $20,000 property damage per accident. For uninsured and underinsured motorist coverage, bodily injury, the minimum limits required are $25,000 per person and $50,000 per accident. Other insurance types are also available for purchase in the state, sometimes leaving people even more protection if they are involved in an accident or other situations.

Minimum Liability In The State Of Illinois

Liability coverage helps pay for expenses another person has if you are found at fault in a car crash for those expenses. Liability insurance coverage can help pay for expenses related to the damage of another person’s property or if the other driver or their passengers sustained bodily injury.

Bodily injury liability coverage helps pay for medical bills, and in some cases, funeral expenses, associated with a car crash in which you are deemed to be at fault. Property damage liability coverage goes towards paying for damage inflicted on another party’s property by an accident that you are deemed to be at fault for.

What Is Uninsured/Underinsured Motorist Coverage?

Uninsured motorist coverage and underinsured motorist coverage are also required in the state of Illinois. Unfortunately, even though it is the law, not every driver carries a car insurance plan. Due to this, drivers are required to carry uninsured motorist coverage. This type of insurance policy covers bodily injury specifically, so if you are harmed in an accident with another driver who is uninsured and at fault, your uninsured motorist coverage will kick in and pay the costs, up to your limits. It is also possible for a person to have insurance, but not enough to pay for the expenses you incur. In this case, UIM coverage will kick in. While not required, uninsured motorist coverage for property damage can also be purchased.

What Are State-Mandated Car Insurance Limits?

A car insurance limit, like the one listed above, is the minimum amount of coverage a person needs to drive legally in the state. Limits reflect the smallest amount of insurance coverage required, which is not always the amount a person should be carrying. In some cases, a person may consider getting larger amounts of insurance. Some accidents cause more than $20,000 in property damage or more than $50,000 in medical expenses due to multiple passengers being involved, or expensive property or vehicles. Imagine totaling someone’s extremely expensive vehicle; the cost could easily rise above $20,000.

In the state of Illinois, you are required to purchase $25,000 in bodily injury protection per person and $50,000 per accident. Many people choose to purchase insurance coverage in higher amounts to further protect themselves. A per person limit is the most an insurance company will pay to any single individual you injure in an accident. Multiple people are covered up to the per accident limit.

Illinois's Penalties For Driving Without Proof Of Insurance

Remember that even though some people choose to drive without proof of insurance, if they are involved in an accident, they will be held liable for expenses that could reach tens of thousands of dollars. An auto insurance policy helps protect them from this sort of situation. Further, people can be penalized for not having an insurance policy if they are pulled over by the police, or in other situations.

Penalties for driving without insurance can be harsh, including fines, fees, but also the loss of your driving privileges. In addition to a fine of up to $500 to $1,000 or more, there can be a potential driver’s license suspension, and an additional reinstatement fee after penalties are put forth to people who have multiple offenses.

Final Notes

Having an automobile insurance policy protects yourself, but also protects other people. It is essential to have automobile insurance in the state of Illinois for these reasons. Not only that, but it is the law. No one thinks that they are going to be responsible for a vehicle accident, but car insurance is in place in case that possibility occurs. Many people do have accidents over the course of a year, and some of them are safe drivers overall. Liability coverage will help pay for damages you cause in an accident. There are other types of insurance available, some of which provide financial protection if another person is responsible for the crash.

Use Illinois Auto Insurance to find the best rates for car insurance available in the state. The tools on this website will help you get quotes for the top auto insurance providers. Having auto insurance is a fantastic way to help protect you from financial hardship. Take advantage of the information here and get free quotes for car insurance now.