Understanding Illinois’ Car Insurance Requirements

Illinois is a large, diverse state. There’s a lot to see between Cairo in the south and Waukegan in the North. And there are plenty of driving hazards that you might encounter along the way. Illinois drivers are going to encounter various traffic, vehicle and insurance laws. These laws ensure that Illinois’ roads remain safe thoroughfares for all travelers.

All Illinois drivers have to follow many laws on vehicle ownership and car insurance. If you register your vehicle in the state, you will have to carry auto insurance. Failing to carry insurance could result in various penalties.

However, you still have options. Once you meet the state’s coverage requirements, you’re often able to adjust your policy to meet your needs. Consider the need for auto insurance a necessity, but the benefit of it to be a convenience.

Illinois Liability Auto Insurance Requirements

Most states require their registered drivers to carry minimum levels of auto insurance. In this manner, mandatory insurance works as a form of consumer protection. Illinois requires its drivers to carry, at minimum, three levels of liability insurance:

  • $25,000 bodily injury or death coverage per person
  • $50,000 cumulative bodily injury or death coverage per accident
  • $25,000 property damage liability protection

You must also carry uninsured/underinsured coverage valued at:

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

The Importance of Liability Protection

Liability protection does not protect the policyholder themselves. It extends protection to other drivers on the road. Let’s say you collide with another vehicle, and break the other driver’s leg. Think about the financial effects that injury might have on the other driver. They might need to pay medical bills, receive rehabilitation or take time off work to recover.

An investigation into the accident determines it to be your fault. The other driver then likely has a right to file a claim against your liability coverage. If you carry the Illinois-mandated coverage, the injured driver could receive up to $25,000 for their losses.

Liability coverage serves as a valuable protection for both a policyholder and other drivers. If the policyholder carries this service, they might not have to pay compensation to an injured party out-of-pocket. Still, liability insurance can provide the affected party with the funds they need.

Penalties of Driving Without Insurance

It’s easy to understand the benefits of liability insurance. That’s why going without it shouldn’t be a thought. Most states levy penalties for drivers who carry either too little or no auto insurance.

Illinois is no different. While there is no jail penalty, there are often financial penalties and driving restrictions.

  • Fines: You can face fines of $501 to $1,000 for your first offense. Even higher fines of up to $2,500 follow for subsequent offenses. The exact fine will likely depend on the nature of the charge and whether it involved a vehicle accident.
  • Driving Restrictions: First-time offenders will receive a license and registration suspension for up to three months. Subsequent offenses will result in suspensions of up to four months.
  • Reinstatement Fees: If you have a driver’s license suspension, you will likely have to pay the $100 reinstatement fees.
  • SR-22 Certificates: Certain drivers will have to have this form attached to their insurance policy for up to three years. It will verify for the state that you have active auto insurance. Your insurer will send the SR-22 form to the Illinois authorities. You must keep your policy active for the entire penalty period.

Driving without insurance will likely change your eligibility for coverage in the future. Many insurers view driving without coverage as an indicator that a driver is a high risk to insure. So, they might deny your application for coverage or charge you more for your policy. If you’ve driven without insurance, talk to your insurance agent about how to insure yourself now.

Getting Extra Insurance

Once you get the state’s auto insurance requirements, you’re going to be driving in compliance with the law. However, carrying required coverage might not mean you’re carrying the best coverage. All vehicles are different. You can likely augment your mandatory coverage with extra protection.

  • Consider increasing your liability coverage to higher levels. Extra protection can better protect your own finances in case of an at-fault accident.
  • Buy collision coverage to cover your own vehicle’s repairs if you have an accident.
  • Get comprehensive coverage to afford repairs to the vehicle that result from accidents like fires, theft or weather damage.

Always carry verification of your insurance coverage in your car when you drive. That way, following an accident, you can have verification that you carry coverage. Never forget to always keep your policy active, and renew it every period. Talk to your insurance agent about the best way to carry protection. Call us for a Chicago auto insurance quote at 877-999-2644.

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Steps for Buying a New Company Vehicle This Year

Maybe your business is growing, and you’re ready to buy a company car. Or, perhaps, your business’ old vehicles no longer suit your needs. Either way, 2018 might be the year that your company buys a new vehicle.

Vehicle ownership opens up a wide range of possibilities for businesses. You can go more places and deliver more services. Still, it comes with its fair share of responsibilities as well. This includes the responsibility to operate legally, including with the right auto insurance. Most businesses need to carry commercial auto insurance on their company-owned vehicles. As you prepare to buy a car, follow the right purchasing process and duly insure the vehicle.

Before Buying, Look at Your Needs and Finances

When you plan to buy a vehicle for your business, you want to do so after careful analysis of your needs. If you don’t get the correct vehicle, you’re going to probably cost the business wasted money in the long-term.

  • Consider the type of vehicle you need. For example, will you drive off-road or haul specialty equipment in your vehicle? Will you use your car for delivery services? In such cases, you might need a specialty type of vehicle like a truck or van. A standard sedan might not meet your needs.
  • Most companies will pay for and maintain their vehicles using business funds. Therefore, take a close look at your operating budget and income. You should never buy a vehicle that is too expensive for you to afford. Always have a good idea of how much you have in the bank, and how you expect your monetary needs to change in the next year. This can help you better nail down a budget for the vehicle.
  • Where will you keep your vehicle funds? Some business owners set aside dedicated funds to finance their company vehicles. This fund should remain solvent throughout the time you own the vehicle. It can help finance vehicle payments, maintenance and other vehicle costs.
  • How will you pay for company vehicles? Some companies pay cash for their cars, and don’t need to finance the vehicle. However, other businesses will take out a business loan to pay off the vehicles. Usually, credit unions and certain banks will offer these loans to business owners. Still, owners should take care to research the best financing options for their needs.

If you think you need special financial accommodations, talk to your financial advisor. They can help you determine how to manage your purchasing power.

Promptly Insure the Vehicle

After you purchase a new company vehicle, you will need to buy commercial auto coverage. Because your vehicle will belong to the company, you likely won’t be able to use standard auto insurance.

Commercial auto insurance accounts for the fact that a business is often a liable party following vehicle incidents. Usually, your policy will list the business as one of the insured parties. So, in case liabilities or damages arise, the business will have protection.

Usually, commercial auto coverage will include protection like:

  • Liability protection: To protect the business when its drivers are at-fault in an accident that harms someone else.
  • Collision coverage: Can help the business afford vehicle repairs following a wreck.
  • Comprehensive coverage: Can cover repairs resulting from incidents like theft, vandalism, fire or weather damage.
  • Medical payments protection: If you need help with medical expenses after an accident, this coverage might help.

And other forms of protection.

Always tell your commercial auto insurance agent certain things about the car:

  • What type of vehicle it is. For example, commercial trucks likely need different coverage than sedans.
  • Who will drive it? You might need to list all employee drivers on your policy. However, many policies automatically cover all employee drivers.
  • Will employees use company-owned vehicles for personal business? The personal use of commercial vehicles might mandate special coverage riders.

Remember, you will likely have to insure the vehicle to meet minimum standards set by your state. Often, an insurer will automatically place the minimum requirements on your policy. However, business owners should increase these levels as necessary, to guarantee protection of their vehicles.

After Buying, Register the Car Appropriately

Commercial vehicles, like every other car on the road, will require registration. Businesses should visit their state’s vehicle registration department to learn more. Some businesses might need specialized operating registration based on the vehicle or products they transport.

Furthermore, drivers might need to get special licensing to operate certain types of commercial vehicles. All commercial drivers should have the training, licensing and experience to safely operate vehicles. Business owners should monitor their drivers for safety at all times. If a driver’s record or experience indicates that they should not drive a company vehicle, then it might be best for the company not to allow that person to operate.

If you have questions about commercial auto insurance, contact one of our agents at 877-999-2644.

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