If you are a driver in Illinois, you must be aware that the laws of this State require that you carry auto insurance for the vehicle you operate. The state wants to protect you as well as other citizens from loss due to an accident. There is minimum auto insurance required and we’ll discuss some important details to consider.
At a minimum, every driver in the State has to have insurance coverage which includes a minimum amount of liability coverage. This coverage must include the following:
- $20,000 for injury or death of one person involved in an accident
- $40,000 for injury or death of more than one person in an accident
- $15,000 of property damage coverage
The insurance identification card must be carried in the vehicle and available to show to law enforcement officials upon request. Failure to provide the identification or failure to carry the minimum amount of insurance carries significant penalties. It can include monetary penalties, license suspension or revocation or even jail time.
In addition to the state minimums, it is important to realize that there are often other kinds of minimum auto insurance which can be required. This is particularly true if you are financing a vehicle. The bank or other financing organization usually requires certain types of insurance coverage which is more than the state minimum.
For example it is usually required that the vehicle carry collision and comprehensive coverage. The collision coverage covers the cost of repairs to the vehicle as a result of an accident. Since most collision coverage has a deductible, the driver would be responsible for a certain amount of the repair. So if the deductible were set at $500, the driver would have to pay that amount and the insurance company would pay the balance up to the total cost of repair.
Comprehensive coverage includes payments for damage caused by vandalism or unexpected occurrences like a broken windshield from flying debris. This type of coverage also normally comes with a set deductible amount which the policy holder covers.
The financing company may also require higher liability coverages than the state minimum. This is particularly true for leased vehicles. So before you decide to purchase or lease a vehicle, you should find out insurance requirements and then verify costs so there will be no surprises later on.
In any case it is very important to realize that while the state has minimum auto insurance requirements, it may be insufficient to meet the requirements of your lender or other interested parties.