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LIABILITY

Liability Coverage

Liability insurance is a requirement for all motor vehicles that must display license plates. For instance, this includes cars, vans, motorcycles, recreational vehicles, trucks and buses. But, it does not include trailers. Having auto liability coverage protects you from monetary losses that may result from a car accident. It also keeps you in compliance with state law.

Types Of Liability Coverage

Liability insurance is a requirement in almost every state. Even if it is not a requirement in your state, it is worth the financial security.

Liability insurance has two types of coverages. They are:

Bodily injury coverage – pays for injuries another person suffers in an accident you are at fault for.

Property damage coverage – pays for damage you cause to another person’s property in an accident.

Liability Coverage Limits

Each state that requires drivers to have liability insurance has its own set of minimum limits your car insurance policy must meet. The limit refers to the maximum amount your insurance will pay in a claim.

As of 2015 per Illinois law (625 ILCS 5/7-601), cars must have the following minimum amounts in vehicle liability insurance:

  • $25,000 for injury or death of one person in an accident.
  • $50,000 for injury or death of more than one person in an accident.
  • $20,000 for damages to property of another person.

Proof of insurance must be kept in a car and given to law enforcement upon request.

To make sure all vehicles with registration have insurance, the state has a system that randomly selects vehicles. If it chooses your car, you will receive a form asking for the insurance company and policy number assigned to it.

The insurance company will check the information to make sure it is valid. But, if you do not have an insurance policy on the vehicle or if you fail to return the filled out form, your license plates will be suspended.

If the police stop you, or a collision occurs, the responding officer may issue a ticket if you do not have proof of insurance. If convicted, it will be for driving without insurance. After that, your license plates will be suspended and the following fines will be applied:

  • Minimum $500 fine for driving without insurance coverage.
  • Minimum $1,000 fine for driving a vehicle while the license plates have received suspension for a previous insurance violation.

Does Liability Insurance Cover Personal Damages?

Liability insurance only pays for bodily injuries or property damage suffered by others when you are at fault in an accident. Your own injuries or property damage are not covered through liability insurance.

More Information

Do you need more information about liability insurance, collision and comprehensive coverage, or medical payments coverage? Our team is here to help with your insurance rate needs. Call us today at 888-949-6289 or visit one of our many Illinois offices. For your convenience, Insurance Navy is open from 8 a.m. to 9 p.m. CST, 7 days a week.

Additionally, we can help you find an insurance quote right on our website. Because we want to help you save money wherever possible, we offer our insurance quotes completely free of charge. By navigating our website, you can also inform yourself about many useful topics, such as coverage for repairing or replacing parts for your car after a crash, how to file a police report, and why you should never admit fault immediately following a car crash.

We also have a strong presence on social media. Give us a like or follow on our Twitter, Facebook, Instagram, or YouTube page. We’ll keep you up to date on various insurance topics and local news.

Lastly, we also have blogs that may help you with any questions you have. In other words, our blogs cover many different topics. From how to keep your car cool in the summer, to proper steps to take after Godzilla damages your car. 

*Please review your own policy carefully for details on liability insurance. Liability insurance varies by insurance company.