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Illinois Car Insurance Requirements

Illinois Minimum Car Insurance Requirements

Like most states, Illinois requires drivers to carry liability insurance coverage. There is a set minimum amount you must carry in order to legally drive in the state. On top of it, Illinois also requires drivers to have at least the state-mandated minimum in uninsured/underinsured motorist bodily injury coverage. Both of these minimum coverage limits are as follows:

Liability Coverage

  • $25,000 for bodily injury per person
  • $50,000 for bodily injury per accident
  • $20,000 for property damage per accident

Uninsured/Underinsured Motorist Bodily Injury

  • $25,000 per person
  • $50,000 per accident

Failure to provide proof of insurance can result in some steep penalties. You must also remember that if you have an auto loan or lease your car, your lender or leasing company may require you to carry additional insurance.

Illinois Liability Coverage

Liability insurance is required in order to legally drive the state of Illinois. If you are responsible for an accident, liability coverage will pay for damages and medical bills the other driver accumulates. Liability insurance will never pay for you or damages to your car. You will have to expand your policy in order to receive such protection. Liability encompasses two categories: bodily injury and property damage. What these areas specifically cover will be explored further in a later section.

Illinois Uninsured/Underinsured Motorist Coverage

Despite the fact that insurance is required by state law, many drivers in Illinois choose to forego obtaining a proper policy. For this reason, Illinois mandates that all drivers must carry uninsured/underinsured motorist coverage to pay for bodily injuries you sustain in an accident. Usually, in an accident, you would contact the other driver’s insurance company to get any claims you have fulfilled. But if there is no company or the driver does not have enough insurance to cover the claim, you would turn to your uninsured/underinsured motorist coverage policy. Keep in mind that Illinois only requires this coverage to pay for bodily injuries. Personal property, like your vehicle, is left unprotected.

Illinois Diminished Value Policy

Illinois is one of 15 states that is a diminished value state. this means that drivers can recover diminished value from the at-fault driver’s insurance company. This is usually done when you are going to sell a car that was damaged in the accident. Even if it has been fully restored, your vehicle’s value still takes a serious hit. Filing a diminished value claim would allow you to recover the losses you experienced during the selling process.

In order to file such a claim in the state of Illinois, you must meet the following requirements:

  • You were not at fault for the accident.
  • You can present detailed records of the accident include photos and receipts.
  • The accident happened less than 5 years ago.
  • Illinois does allow uninsured motorist coverage for such claims.

Car Insurance Limits in Illinois

Nearly every state in America requires drivers to carry a certain amount of liability insurance in order to drive. This coverage limit refers to the minimum amount of insurance required by the state. In Illinois, the policy is 25/50/20. From an insurance standpoint, these numbers also indicated the maximum amount your insurer will pay out if you choose to carry such a policy.

Each of the numbers stands for a different aspect of liability insurance. They fall into three different categories: bodily injury per person, per accident, and property damage. Outlined below is what each of these sections covers.

  • Bodily injury per person refers to the amount your insurer will pay out for injuries to one person in an accident that you caused.
  • Bodily injury per accident is the maximum amount of money your insurance company will pay for all injuries you cause in an accident.
  • Property damage per accident is the amount your insurance company will pay up to for damages you are responsible for in an accident.

Is Illinois’s Mandatory Insurance Minimums Enough Coverage?

In short, no. Illinois does not have an adequate enough minimum liability insurance amount that would allow you to only carry it and be completely protected. The coverage limits can leave you at risk. For example, Illinois has set its mandatory property damage liability at $20,000. If you total someone else’s vehicle, that will barely begin to cover the price for a new vehicle. Whatever is not paid after insurance helps out lands in your lap. This can put you in a very unfortunate position financially. For this reason and others, it is highly recommended that when you buy car insurance, you increase coverage limits and utilize policy add-ons. This will help to better protect you and your assets.

Driving Without Proof of Insurance in Illinois

Failing to provide proof of insurance comes with some pretty severe penalties in the state of Illinois. After just your first offense, you could be facing a fine anywhere from $500-$1,000 along with a three-month license suspension. Penalties only get harsher the more conviction you wrack up. You may even have to maintain an SR22 certificate for a set period of time.

Additional Types of Car Insurance in Illinois

The state of Illinois only requires drivers to carry liability insurance and uninsured/underinsured motorist bodily injury coverage. However, there are multiple other types of insurance on the market you can add to your policy for stronger coverage. Listed below are some common policy add-ons.

  • Collision: This covers damage your car sustains in an accident no matter who was at fault.
  • Comprehensive: This type of insurance covers damages to your car that occur when it is not in use. Some perils such policy protects your vehicle against include theft and medical expenses.
  • Roadside Assistance: If your vehicle is having some mechanical issues while you are on the road, roadside assistance can offer a lending hand. While the full scale of coverage varies from company to company, it generally will help you with things like a dead battery or flat tire.
  • Gap Coverage: If you have an auto loan and your car is totaled before you can pay it off, gap coverage assists you by paying the difference between your vehicle’s actual cash value and the remaining amount on your loan.
  • Medical Payments: This coverage pays for medical bills you and your passenger(s) accumulate after an accident.
  • Uninsured Motorist Property Damage: Illinois requires uninsured motorist bodily injury coverage, but there is an option to protect your property. Uninsured motorist property damage coverage will pay for damages your vehicle sustains in an accident with a driver that either lacks insurance or has an inadequate amount.

Car Insurance is Important For Any Illinois Driver

While you cannot predict a car accident, you can try to be prepared for one, and the best way to do that is to carry an adequate car insurance policy. You should consider purchasing coverage limits beyond the state-mandated policies along with policy add-ons in order to protect you and your assets. Insurance is such a valuable thing to carry and helps protect you after the unthinkable happens. Don’t put your finances at risk by opting out of obtaining a policy.

*This product may not be available in every state, please call an agent for more information.

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