Illinois Auto Insurance Guide

Whether you are looking to drive your car down I-90, ride your bike down I-55, or take your boat out to Lake Michigan car insurance is crucial to having responsible fun.

 

Auto Insurance Resources for IL State Residents

The Illinois Department of Transportation reported 8.77 million licensed drivers and 7.76 million registered passenger cars in its 2009 annual report. The site also noted that 232 of the 832 traffic-related fatalities in 2009 involved drivers who were unlicensed or whose drivers licenses were suspended, revoked, denied or expired! Since unlicensed Illinois drivers are more than likely uninsured Illinois drivers, the state passed tougher laws in January 2010 making it a misdemeanor to injure someone while driving without insurance, punishable by up to a year in jail or a $2,500 fine. Here’s what you need to know to comply with basic Illinois automobile insurance requirements.

 

Illinois State Minimum Auto Insurance

Illinois law mandates that no one may operate or allow someone else to operate a motor vehicle that isn’t covered by the minimum Illinois liability insurance. Illinois is not a no-fault state and does not require that you carry Uninsured/Underinsured Motorist Coverage, although you would be wise to consider this coverage along with enhanced personal liability insurance if you own property or other assets of value.

• $20,000 for injury or death of one person in an accident
• $40,000 for injury or death of more than one person in an accident
• $15,000 for damage to property of another person

 

Illinois State Car Insurance Laws

You are also required to carry proof of Illinois auto insurance in your vehicle and produce it if a law enforcement officer asks to see it. The penalties for operating a vehicle without proper insurance is a minimum fine of $500 and a mandatory $100 fee to reinstate your registration once you can produce proof of insurance. Repeat offenders face a four-month suspension period and the aforementioned fines.

Illinois enforces its mandatory automobile insurance laws by requiring you to sign your Vehicle Registration Application affirming that your vehicle will be properly insured throughout the registration period. The state uses a computer to randomly select vehicles and send out questionnaires requesting the name of the car insurance company and auto insurance policy, which is then verified with the insurance company. Lack of insurance or failure to return the questionnaire will result in suspension of your license plate and a $1,000 fine if you’re got driving a vehicle while the registration is suspended for no insurance.

If you receive court supervision for a mandatory insurance violation or are convicted of a third or subsequent insurance violation, you will be required to file proof of financial responsibility in the form of an SR22 certificate for three years, or face suspension of your driver’s license.

 

Claiming Damage to Vehicles Caused by Illinois Roads

Around the time the Chicago Bears wrap up their season, sometimes much sooner, the snow wreaks havoc on the roads. The constant freezing and thawing during Illinois winters makes potholes very problematic. The Illinois Tollway has set up a proccess to compensate claims for damage to vehicles. Of course, the Tollway is not going to pay any claim. Valid proof must also be presented. In addition to the claim form, they ask you submit:

• Submitting two repair estimates (or paid receipts for repairs)
• Photographs depicting damages (preferred, but optional)
• Proof of ownership (copy title/ registration or insurance card)
• Incident Report or Accident Report prepared by Illinois State Police (required)

More information can be found on the Illinois Tollway website.

 

Regulating Agency and References

(NAIC) National Association of Insurance Commissioners
The National Association of Insurance Commissioners (NAIC) is the organization of insurance regulators from the 50 states, the District of Columbia and the five U.S. territories. The NAIC provides a forum for the development of uniform policy when uniformity is appropriate. NAIC members are the elected or appointed state government officials who along with their departments and staff regulate the conduct of insurance companies and agents in their respective state or territory.
http://www.naic.org/

Illinois Department of Insurance
The Illinois Department of Insurance mission is to: “To protect consumers by providing assistance and information, by efficiently regulating the insurance industry's market behavior and financial solvency, and by fostering a competitive insurance marketplace." Visit the Illinois Department of Insurance at http://insurance.illinois.gov/

Insurance Information Institute (III)
This organization’s mission is to improve public understanding of insurance – what it is and how it works. Visit III at http://www.iii.org/

 

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