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Why does an Illinois driver need insurance? Because it’s a mandatory law in Illinois. All car owners must have insurance coverage for at least the minimum liability limits to protect the public or those you are involved in an accident with. You can get the recommended coverage for all Chicago area drivers at the right cost.
What if you don’t purchase insurance? How can the State find out?
There are 3 ways you can get caught in Illinois.
1. If you get stopped by police for a moving violation.
2. If you get into an accident with another car or damage someone else’s property.
3. The state’s has database of driver licenses and a computer randomly sends a notice via the mail to Illinois vehicle owners asking to provide proof of insurance for the registered vehicle.
When you renew your license plates, the form asks for your auto insurance information. As stated in #3, the state may send you a notice through the mail requesting proof of insurance. You will need to furnish the name of your insurance company and the policy number. If you fail to send insurance proof when required through the random selection, your license plates will be suspended. If the police pull you over for a violation, the first thing they do is run your plates through the state database. They will determine the plates are suspended and you will get fined $500 and pay $100 dollars to reinstate your vehicle registration. They may also impound your car since you failed to provide proof at the time of the initial request.
What happens if you get caught?
As stated above the fine is $500 and you must pay $100 to reinstate your vehicle registration and ALSO show proof that you purchased insurance for a violation or accident when you appear in court. Getting proof of insurance is also known as financial responsibility insurance called an SR-22 policy. SR stands for Safety Responsibility. You are required by the citizens of Illinois to have the minimum limits of liability insurance.
What happens if you get caught a 2nd Time?
The fine is raised to $1000 and you must also pay a $100 reinstatement fee, show proof of purchase of insurance and your vehicle registration will be is suspended for 4 months. You cannot drive the vehicle during the time your license plates are suspended.
What happens in an accident that you cause and have no insurance?
You can be sued by the other insurance company and/or the other person’s attorney. Part of your wages or pay will be sent to the other person to until the cost of damages is paid in full. It’s called a wage garnishment. What happens in an accident that you cause and have insurance?
Your insurance company pays for damages to the other person up to the limits of your coverage. Minimum or higher, depends on your life situation.
What happens in an accident that is not your fault and you have insurance?
Depends on if you have liability only coverage (the state minimum limits) or full coverage. Your insurance company will pay for damages to your car up to the limits on your policy. Then the insurance company will try to subrogate/collect your deductible and the rest of the cost of repairing or replacing your car from the other or at-fault insurance company.
You can also try to collect directly from the other insurance company as long as the other party was covered for the loss and they admit fault to their insurance company.
Chicago driver TIP: Buy only what you need, state required mandatory auto insurance is not expensive.
Having insurance coverage means you won’t be nervous every time you drive or get near a police car or when pulled over at those random police check points that occur on Holiday weekends.
Obey the Law, it’s cheaper than the fines you have to pay or when you’re at fault in an accident.
Below are the Illinois required minimum auto coverage limits: You must have at least these coverage amounts to operate a motor vehicle:
$20,000 – injury or death of one person in an accident
$40,000 – injury or death of more than one person in an accident
$15,000 – damage to property of another person
$20,000 – injury or death to named insured if the other driver at fault is uninsured
$40,000 – injury or death of more than one person if the other driver is uninsured
What are the Chicago area minimum coverages required need to be legal?
Here is a breakdown:
Bodily Injury coverage
o $20,000 per person for injury or death of one person in an accident
o $40,000 per accident for injury or death of more than one person in an accident
Bodily Injury Coverage: Pays for Bodily Injuries to others caused by insured driver.
Uninsured motorist coverage
o $20,000 per person for injury or death of one person in an accident
o $40,000 per accident for injury or death of more than one person in an accident
Uninsured Motorist Coverage: Pays you and those covered by your policy up to the limits of your policy for injuries if the other driver is liable and has no auto insurance coverage.
Property damage coverage
o$15,000 – damage to property of another person
Property Damage Coverage: Damage to the property of others caused by the insured.
STOP-The above 3 coverages are all you need to be legal! You do not need to purchase the coverages below unless you feel it is necessary.
Underinsured Motorist coverage: Pays you and those covered by your policy up to the limits of your policy if the other driver is liable and has auto insurance coverage limits which is less your policy coverage limits.
Medical Payments coverage: Pays you and those covered by your policy for supplementary medical expenses up to the limits of your policy which result from an accident. Usually used when passengers in your auto are injured.
The coverages below are usually purchased when you have a newer car and you pay monthly car payments to a bank or other entity that gave you the loan such as Ford Credit, or GMAC. They require you to have Collision and Comprehensive coverage.
Collision Insurance: Covers physical damage to your automobile (other than that covered under comprehensive insurance) resulting from contact with another object such as a car, or light pole.
Comprehensive Insurance: This coverage provides protection in the event of physical damage (other than collision) or theft of your car. For example, fire damage or a cracked windshield would be covered under the comprehensive section.
Deductible: The amount of the loss which you pay before your insurance company begins to pay. For example, if you have damage to your vehicle of $1,000 and you have a $500 deductible you pay the first $500 and the company will pay the remaining $500. The higher your deductible, the more you will have to pay in case of an accident, but your premium will be lower.
Rental Reimbursement: Pays for some or all of the cost of a rental car while your car is being repaired or replaced if it is involved in a covered loss.
Towing: Pays for towing if your vehicle is disabled in an accident.
Minimum Liability Insurance coverage in Illinois is not that expensive when comparing to what can happen when you get fined or have to pay out of pocket for an accident you cause.
Chicago area drivers should make sure the have the right coverage for their economic and social situation.
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