Illinois state flag buttonAccording to the state’s laws, residents who own a motor vehicle must have the minimum required policy that has been determined by state law. If caught and convicted of driving without auto insurance the vehicle owner’s license plates will be suspended and the driver will face a minimum fine of $500; if caught driving uninsured while license plates are suspended for a previous insurance violation a minimum fine of $1,000 will be issued. There are two types of coverage that are mandatory which are Liability and Uninsured Motorist/Underinsured Motorist. The limits have been set at 20/40/15 and 20/40 which translates into the following:

Liability;

  • $20,000 for bodily injury to one person
  • $40,000 for bodily injury to two or more people
  • $15,000 for property damage

Uninsured Motorist;

  • $20,000 for bodily injury to one person
  • $40,000 for bodily injury to more than one person

A Liability policy pays for bodily injuries or damages to property that is caused to a third party by the policyholder up to the limit states on the policy. For example, this will pay for medical expenses for injuries sustained by a pedestrian or a person in another vehicle as a result of a traffic accident where the insured is at fault up to the policy’s limits; it will also pay for damages to another person’s property such as their automobile, fence, poles, etc.

Uninsured and Underinsured Motorist pays for bodily injury of the policyholder and their passengers if they are involved in a collision with an at-fault driver who has no coverage up to the limit purchased by the insured. This will also provide compensation for being hit by a motorist who is underinsured (coverage does not meet state requirements) or if victim of a hit-and-run driver. Although the above mentioned is the minimum Illinois car insurance requirements higher limits and additional coverage can be purchased.

Consider Additional Coverage for Illinois Car Insurance

It is always wise to consider purchasing more extensive protection. Raising liability limits may be a place to start. If the cost of injuries or property damage were to exceed the limit stated on the policy the insured can be held liable for the remaining costs of medical care and/or property repair or replacement and may find themselves subject to a lawsuit. One should also keep in mind that the minimum requirements do not cover bodily injuries of the policyholder or damages to their vehicle that have been caused if the insured is at fault.

In some cases additional coverage is a must. If a vehicle is being financed the financial institution will most likely insist that the borrower have protection against physical damage. This is known as Comprehensive and Collision and is commonly referred to as “full coverage” when combined with liability. This compensates for damages to the insured’s automobile minus the deductible chosen. Coverage such as Medical Payments helps cover medical and funeral expenses for the policyholder and their passengers as a result of a traffic collision. Motorists have many options to choose from when purchasing a policy, they should take the time to understand what needs to be covered and buy a policy that will offer the right protection. For more information on additional options and their benefits one can visit the Illinois Department of Insurance.