enero, 2020 | Amigo Insurance

Have the Right Paperwork to Avoid SR-22 Risks

Driving safely is about more than being careful behind the wheel. It also means that you have to have the proper qualifications to operate a vehicle.

Every state has rigorous licensing, registration and insurance requirements. Failing to get the correct qualifications may cause your state to label you as a high-risk driver. A high-risk classification may require an SR-22 certificate for your auto insurance. Drivers don’t want to get SR-22 files, as these may negatively impact the driver’s insurance coverage.

Why States Require SR-22s for Lack of Qualifications

If you don’t have the right qualifications, it may signal that you cannot drive in a trustworthy manner. Less trustworthy drivers may pose higher operating risks. These risks may lead the state to require you to prove you have active auto insurance. A strong auto insurance policy might reduce risks that high-risk drivers pose on the road.

To prove that you have auto insurance, your state may require you to get an SR-22 certificate. These certificates come from your auto insurer, and verify that you have coverage. SR-22 certificates might remain on your driving record for a couple of years, depending on your state.

Avoiding SR-22s Is Always Best

If your state requires you to get an SR-22, this often signals to your auto insurer that you are a high-risk driver. As a result, it may discontinue your coverage or increase your policy prices.

States may impose SR-22 requirements for qualification violations like driving without insurance or failing to carry proper licensing. It is imperative that all drivers maintain their driving qualifications at all times.

Have an active, un-expired driver’s license with you at all times. Update or renew your license on time. Make adjustments to your license information or classifications any time you experience a change in driving circumstances. Do not drive with a suspended or expired license.
Carry up-to-date registration and plates on your vehicle. Each state requires registration renewal through different processes. Familiarize yourself with your states laws, and do not miss a renewal deadline.
Always carry effective auto insurance. Driving without the proper insurance can frequently lead to SR-22 requirements. Most states require auto insurance coverage for most drivers. Make sure your policy meets all state requirements.

Before you hit the road, have the right qualifications to drive. It may help the authorities determine you are a safe driver.

Call Amigo Insurance Agency, Inc at 877-999-2644 today for help getting a fast, free Chicago auto insurance policy quote.

What does a Business Owners Policy or BOP Not Cover?

How do small companies buy insurance? Many businesses buy a business owner’s policy. This kind of protection is often called a BOP. Insurers will offer lower rates for the coverage included in the BOP. This solution may offer a simple and cheaper way to buy insurance.

A BOP may make sense for a small company. Stores, dental offices, and cafes all may find that a BOP suits their basic needs. Still, it may not provide enough insurance.

What does a BOP cover? Common coverage in a BOP might include liability, property and business interruption insurance. Some agents will customize a BOP to suit their clients. They may be able to tailor protection for the business size, industry, or location.

What Won’t a BOP Cover?

Still, a BOP may not include all the coverage that your company needs.

These kinds of insurance are not likely to come with a BOP:

Professional liability: Some professionals need to protect themselves against claims that they did not perform their duties properly. Medical professionals may need malpractice insurance. Finance professionals might have to buy errors and omissions coverage. A BOP usually won’t come with this kind of protection.
Cyber insurance: Today’s companies value digital information. They also value the security of customers’ information. Cyber insurance protects businesses against data breaches or the loss of computer systems.
Business car: A company’s cars have to have insurance against liability or property loss. Personal insurance isn’t usually enough. A company may need business car insurance too.
Employee benefits: A BOP won’t usually contain workers’ compensation or health insurance either. Employee benefits must usually come separately.

How to Buy Business Insurance?

Most business owners understand that they need insurance to protect their company. They might also need to protect their employees. Most owners would rather focus their energy on running their company. The right insurance can help them focus by giving them peace of mind.

Find an agent with experience insuring covering similar companies. They should suggest policies and help compare rates. The final choice of a BOP and other business insurance depends upon the owner. A good agent can help the company save time and money.

Let Amigo Insurance Agency, Inc help you get the right coverage at an affordable price. Call us at (877) 999-2644 for a fast, free insurance Chicago business insurance quote.

What Is No Fault Auto Insurance?

When a car accident occurs, does it matter who is at-fault? In no-fault states, who is responsible is less of a factor than you may think.

It is important for drivers to understand how their car insurance works. At-fault and no-fault auto insurance differs in an important way. Depending on the type you have, you may pay more or less for an accident.

How Does No-fault Car Insurance Work?

The term no-fault auto insurance describes a specific type of insurance product. In this type of policy, the policyholder turns to his or her plan when an accident occurs. Who caused the accident does not matter in this situation. Very few states allow for this type of auto insurance. Most require at-fault insurance instead.

In at-fault coverage states, police determine who holds responsibility after an accident occurs. Then, the insurance company for the person at-fault pays for most or all of the losses of the other driver.

In no-fault cases, the individual can file a claim with his or her car insurance provider. The provider should cover the losses no matter who caused the accident. Here’s an example. You are in an accident in which another driver hits your vehicle. Instead of filing a claim with that driver’s liability insurance, you file it with your own. Your insurer covers your losses.

What Are the Benefits of No Fault Insurance?

When used, no-fault car insurance offers some benefits. First, it means the driver always has coverage for medical needs. You do not have to rely on the other driver’s liability policy to cover your losses. This offers a bit more peace of mind. Second, it may reduce the likelihood that you will pay more if you are in more accidents. Rather, a blanket policy is in place.

Should You Invest in This Insurance?

It is important to realize not all states allow for no-fault car insurance. Check with your Department of Motor Vehicles to determine if this is an option for you. Some states offer limited access to such plans. And, these plans have limitations. Most of the time, they limit how much they cover. If you have this type of insurance, take a closer look at your coverage. Illinois is a state that enforces at-fault auto insurance laws.

Most people will find that basic auto insurance that assigns blame is most economical. It is the most common option available. Choose a policy that properly represents your needs in all cases.

Call Amigo Insurance Agency, Inc at (877) 999-2644 and we can help you get a Chicago auto insurance quote.

Prepare Your Vehicle for Winter Driving Now

We are quickly moving towards the close of the year, and towards the official start of winter. Even so, winter raises new safety risks that may impact your ability to drive safely. Therefore, you are likely have to take extra precautions when driving during the winter.

One way to improve your driving risks during the winter is to keep your car in good working order. By having a safe vehicle, you can lower your safety risks when you drive. You might be able to avoid breakdowns, wrecks or the potential that you will harm others. Not only is this good for you as the driver, it is also good for your insurance company and others on the road.

As winter approaches, realize that different forces may impact your car’s reliability. Take the time to make adjustments to your driving habits and your vehicle.

Know How Changing Seasons Affects You

No two locations are alike in how they experience seasonal changes. Some parts of the country may see frequent blizzards. Others have temperatures below zero but little precipitation. Still other areas might see mild temperatures, but frequent precipitation.

You should know how a typical winter impacts your area. This can help you take better precautions to prepare your vehicle for winter driving. Environmental changes during the winter may impact your ability to drive. They may also have different effects on your vehicle and its working systems.

Review Your Auto Insurance

Your auto insurance is an important part of the protection your vehicle needs. Should you experience vehicle damage or personal injuries from various incidents, your coverage can usually help pay to control the problems. It’s imperative for drivers to periodically review their coverage.

Most people review their policies as they come up for renewal. However, there is no wrong time to check your existing coverage. As winter approaches, make sure your policy is adequate for the seasonal risks you may face.

Ensure your collision and liability coverage are high enough. During winter, a potential for increased bad weather might raise your accident risks.
Check your comprehensive coverage. This protection kicks in for risks not associated with wrecks. It may cover damage sustained for instances of fire, theft or weather. See if you have (or can obtain) coverage for winter weather typical of your area.
Your insurance may offer more coverage that could benefit you in case you have car trouble. For example, you may be able to use roadside assistance coverage in case you get stranded in bad weather.

Getting Your Car Ready for Winter

As winter sets in, the changes in weather could have lasting effects on your vehicle. Remember, your car experiences a lot of exposure to the elements. Rain, snow or freezing temperatures may all damage internal and external vehicle systems.

Consider taking your car to your mechanic before the winter arrives in full. They can run maintenance on the vehicle to help prepare it for harsh or changing weather. They may even be able to diagnose small malfunctions that it may be a good idea to repair before the cold sets in.

Have your oil changed every few thousand miles. Your vehicle manufacturer can usually recommend a specific limit on miles. Changing the oil before winter can help ensure that internal systems have appropriate protection.
Have your mechanic run a test to ensure the strength of your engine. If your engine doesn’t function well, it may come under undue stress during times of severe weather.
Your car’s battery may experience sensitivity issues during the winter. For example, during times of cold weather, your battery may use more energy to start your vehicle. This could strain the battery, and hasten its eventual failure. Battery strain can also impact other vehicular system. The typical vehicle needs a battery change every two to five years. If your battery is due for a change, consider getting it fixed before winter sets in.
If you find your tire treads depleted, consider buying new tires. Routinely check your tire pressure throughout the winter. Also have your shock absorbers, brake system and other control mechanisms inspected. Some drivers have snow tires installed on their vehicles during the winter. These practices can help drivers better control their vehicles on roads affected by weather.
Check your vehicle seals and HVAC system. If either malfunction, this could cause undue strain on other internal systems.

As you approach winter, do what you can to keep your vehicle safe. Then, once you hit the road, drive in manners that take existing hazards into account. While your auto insurance can help you in the event of an accident, the better approach is to prevent such risks. Therefore, careful preventative maintenance may help you stay safe on winter-affected roadways. Never forget to talk to your auto insurance agent about how you could improve your coverage for winter driving.

Do you need auto coverage? Call Amigo Insurance Agency, Inc at 877-999-2644 for a Chicago car insurance quote.

Buying a New Car? Take the Time to Get Your Affairs in Order

Eventually, we’re all going to have to take the plunge and buy a new car. But, making this investment requires care and consideration on your part.

You have to have the correct financial cushion in place to own a car. If you don’t you could wind up making decisions that put you at a high degree of personal risk. Before signing, it’s up to you to make sure you have the right resources to buy a new car.

1. Research the Value of Your Existing Car

Determining value helps you understand for how much you can typically expect to sell the car. You may even want to trade your car for a new car. Doing so might afford you a funds credit from your dealer to apply towards your new car. By having a firm grasp on your car’s value, you might be able to negotiate a better trade value with your dealer.

To determine the car’s value, first check the Kelley Blue Book. It can help you determine how much your car is worth, based on its depreciated market value. As most cars lose value over time, you can expect your vehicle to be worth less now than it was when you bought it.

For a more specific quote on value, take your car to a vehicle appraiser. This appraiser can look at specific features of your vehicle to determine a more exact value.

2. Know Your Own Budget

A new vehicle will be a significant financial investment. You will pay for more than just the vehicle. You also can expect maintenance, insurance and other costs over your car’s lifetime. If you know how much you can afford to pay for a vehicle, you can protect your own solvency.

If you fail to pay for your car using responsible means, this may damage your own consumer credit. Various financial lenders may view you as a high-risk customer. This may make it harder for you to obtain car insurance, loans or other financial remedies. Therefore, before buying a car, make sure you have the financial means to do so.

3. Research Vehicles

Once you know how much you can afford to pay for a car, you can isolate vehicles within that price range. By making prudent decisions about the car you want to buy, you can also reduce risks you might face.

You should always look into how and where you plan to drive. Do you commute? Do you drive on uneven roads or haul heavy loads? Not every vehicle fits everyone’s operational needs. Therefore, you should get a vehicle that’s appropriate to you. The better the fit of your vehicle, the lower your risks may be.

Research may also help you pinpoint extra features to increase your own protection. The better a vehicle’s safety features, the more likely it is to have a high safety rating. Some insurers consider vehicle safety ratings when awarding discounts or determining policy rates. The more reliable your vehicle, the better your chances of paying less for insurance.

4. Buying Your Vehicle

After you’ve settled on the vehicle you want to buy, there’s a process you have to follow to legally drive it off the lot.

First, you must determine how to pay for the car. Many individuals take out loans to pay for the vehicle. Afterwards, the buyer has to repay this debt to the lender, often with interest attached.

Furthermore, you need to register your vehicle with the proper authorities. You will have to get license tags, registration and title information on your new vehicle. Additionally, one important piece of registration you must obtain is auto insurance.

5. Getting Auto Insurance

Most states require all their drivers to carry minimum levels of auto insurance. The exact requirements will differ by state. However, all drivers should consider investing in:

Liability coverage: Protects you in case your driving causes harm to third parties.
Collision coverage: If you have a wreck, this coverage can help you repair or replace your car.
Comprehensive coverage: Hazards like weather or theft may damage your car. This coverage can help you repair that damage.

Beyond these general coverage offerings, the policy options available to you may vary. You may find some options useful, and others not so much. Work with your insurer to determine the coverage that’s right for you. You will likely need to set higher coverage limits, and perhaps invest in extra coverage at first. These levels might be able to better address the risks associated with new cars.

To get the best insurance coverage, talk to your independent auto insurance agent. They might be able to compare the options available to you to get you the best insurance prices.

Ready to buy auto insurance? Call Amigo Insurance Agency, Inc at 877-999-2644 for a Chicago car insurance quote.

Safe Driving Practices in Mexico

Many Americans assume that driving in Mexico is dangerous. Usually, this is not the case. Yes, America’s neighbor to the south has unique driving risks, some of which can be quite dangerous. However, Mexican driving in itself is often a perfectly safe, enjoyable experience.

Despite our close connections with Mexico, driving there might seem daunting. Still, if you don’t drive safely in Mexico, you might find yourself in trouble. No one wants to experience driving problems, especially in a foreign country. Therefore, observe safe driving practices that will make your adventure a success.

Before You Go: Obtain Mexican Auto Insurance

American drivers might think they can simply drive into Mexico with no barriers. Wrong answer. Americans have to get proper international travel documents, like passports, vehicle import permits and visas to travel into the country.

Furthermore, Mexican law does not recognize American auto insurance policies. That means if you drive past the U.S. border, your existing auto insurance will likely void.

Mexico and its states requires all drivers to carry their own liability insurance. Therefore, American travelers will need to invest in a Mexican auto insurance policy. Even if you travel in the Mexican free zones, areas with looser visa and import requirements, you still have to carry Mexican Auto insurance. Many American insurers work with their counterparts in Mexico to issue Mexican policies. However, your policy comes directly from the Mexican insurer. Once you get this coverage, you will file any claims with the Mexican auto insurance company. Usually, Americans can obtain policies only for the length of their travels in Mexico.

Once on the Road, Follow Safe Driving Practices

Simply getting Mexican auto insurance won’t give drivers immunity from accidents. Just like domestic driving, foreign driving poses its own risks to Americans. Keep certain safe driving practices in mind as you prepare to travel in Mexico.

Prepare your vehicle before you go. You want to have a well-functioning car with any road trip. Where you travel shouldn’t impact whether you have the vehicle serviced before you go. Do it regardless. Change the oil and inspect the engine, tires, battery and other vital systems. Remember, most auto insurance policies won’t cover maintenance breakdowns anyway.
If you find yourself in need of repairs in Mexico, seek out a trusted mechanic who understands U.S. vehicles. U.S. cars and Mexican vehicles often have certain differences in design. Mexican auto mechanics may not be familiar with some of the finer points of U.S. auto repairs. You do not want to entrust your vehicle to someone who might not know how to repair it.
Plan a route which you intend to travel, and research it beforehand. You should always know what amenities you have available to you along that route. Don’t deviate from your planned route unless you have assurances that it is safe to do so.
Contrary to tales of highway robbers, cartels and other threats, driving in Mexico is usually perfectly safe. Nonetheless, there are places that do pose threats to tourists. The U.S. Department of State and the Mexican authorities sometimes issue travel advisories. They might warn visitors to avoid certain areas. Both before and during travel, know which areas that it is best to avoid. Don’t venture into these areas if you can help it.
No one wants to have their purse or wallet stolen from their car when they stop for gas or the night. This can happen anywhere you go in Mexico, or even the U.S. for that matter. However, you don’t want to have to deal with the hassle of theft during international travel. Therefore, see to the safety of your possessions at all times. Keep valuable and private possessions with you or locked in your vehicle when you are not inside it. Hide items like purses, electronics or luggage under seats or in trunks. Arm all your security systems when leaving the vehicle.
Learn the rules of Mexican roads. In many ways, they will be similar to American laws. However, even small differences might impact foreign drivers. For example, you might encounter signage in Spanish. If you don’t understand it you might make mistakes. You might also encounter road construction or markings with which you aren’t familiar. You can often obtain safety guides to help you better understand the rules of the road.
Take special care when driving at night or in unfamiliar environments. Certain hazards could pop up that you might not expect. For example, livestock might roam on rural Mexican roads at night, posing risks to drivers. Additionally, it is well known that anywhere you go at night, unsavory characters might lurk and emergency services might be scarce. Therefore, always redouble your safety efforts.

The bottom line is to remember that you should drive with extreme care when traveling in Mexico. The safer you attempt to drive, the lesser your chances of encountering problems. Nevertheless, you should never go without protection. Speak to your American insurance agent about getting a Mexican auto insurance policy. Your agent can help you determine how best to protect yourself.

This is Your First SR-22. Now What?

Sometimes, minor traffic violations are more inconvenient than anything else. However, severe violations might show that you are a danger to yourself and others on the road. Each state has different ways of penalizing those who commit serious driving infractions. Penalties might include a requirement to get an SR-22 certificate.

If this is the first time that you have to get an SR-22, you might not understand what it is. SR-22s are certificates that essentially verify that you carry auto insurance. If you have serious driving violations, your state might require you to carry this form.

How You Can Get an SR-22 Penalty

Often, SR-22s penalties originate following dangerous behind-the-wheel violations by drivers. They may arise after drivers receive charges of:

Multiple or severe accidents
Many speeding tickets
Driving without insurance
Driving without a valid license or registration
DUI or DWI violations

Or other offenses.

Each state determines its SR-22 laws. Indeed, some states do not have SR-22 penalties at all, and won’t require the certificate. However, even if you live in a non-SR-22 state, you can still receive SR-22 penalties in another state. Visit your state’s DMV, motor vehicle service, or public safety websites for information about particular laws.

Understanding the SR-22

An SR-22 might impact the way you carry and afford auto insurance. Therefore, it is important that first-time recipients understand what the SR-22 is. Many people mistakenly believe that SR-22 coverage is a special type of car insurance.

If a driver commits serious violations, the authorities might classify them as high risks. High-risk drivers usually have a greater chance of causing property damage, injuries to third parties or damage to their own vehicle.

States understand the potential for damage that high-risks drivers carry with them. Many states have instituted the SR-22 rule as a way to protect high-risk drivers and others on the road. You can view the SR-22 as a way that states make doubly sure that high-risk drivers carry auto insurance.

SR-22s are not insurance policies. They are certificates that attach to existing auto insurance. Once attached to your insurance policy, the SR-22 goes to your state authorities. It verifies for the state that you have active auto insurance.

How Will the SR-22 Affect My Insurance?

When you get an SR-22, you will need to immediately contact your insurance agent. Your agent will be a source of information and assistance during this time.

SR-22s belong to drivers who carry a lot of risk, and insurance companies know this. Therefore, just as the state will view you as high-risk, so might your insurer.

When insurers issue policies, they assume risks associated with that driver. They base the amount of risk the driver has on varying factors. However, each factor impacts a driver’s likelihood of filing a claim. The more likely a driver is to file a claim, the higher their risk level usually is. The insurer may increase the driver’s premium because they have a higher chance of having to pay a claim for the driver.

Since SR-22s show a high risk, insurers will likely raise premiums for drivers who carry them. Some even refuse to cover the highest-risk drivers, including SR-22 carriers.

Getting and Maintaining Your SR-22

The thing to do when you get an SR-22 is to keep your wits about you. You usually have to follow a specific process to file the certificate. Contact your insurance agent or insurance company and notify them of the requirement. Your agent can then tell you how the SR-22 will impact your coverage.

If your insurer refuses to cover you any longer, your agent might be able to help you find a new policy.
You might need to consider adjusting your insurance coverage to higher limits. Your agent can often help you do that.
Some independent insurance agencies do not issue SR-22 certificates. You might have to seek policy assistance from another resource to get the filing. Be sure to verify with the state that it is in receipt of the certificate
Sometimes, you might have to file the SR-22 with the state yourself. In others, the agency might be able to file the SR-22 on your behalf.

There are usually costs associated with your SR-22 coverage. A simple filing fee is usually quite nominal, around $25 in most cases. However, you might face other costs. For example, the insurance company issuing the SR-22 may require you to pay your full premium up front. This helps make sure that your policy will not expire or cancel due to lack of payment. Remember, your premium may go up, and stay that way for a while.

The good news is, your SR-22 is usually temporary. Most first-time offenders have to keep the SR-22 active on their licenses for about 2-3 years. However, the key to getting an SR-22 is to not re-offend. If you commit further driving offenses during the SR-22 period, it may drive your rates up further or cause the penalty period to start over.

The SR-22 certificate is nothing to disregard or take lightly. You must adhere to its requirements like any other penalty. Talk to your insurance agent to make sure your auto insurance coverage and certificate meet all lawful requirements. With the correct protection, you can ensure that you will finish your SR-22 penalty without lingering consequences. Contact us to learn more about SR-22s in Chicago.

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.

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.

Avoiding DUIs and SR-22 Requirements

One particularly devastating form of driving violation is a DUI. DUI charges stem from drivers who operate a vehicle while drunk or otherwise intoxicated. This is a serious driving mistake because intoxicated drivers are not in full control of their faculties. This impairment therefore makes vehicle operations unsafe. It is dangerous not only to the affected driver but others on the road.

Should you receive a DUI, you will likely face various extremely serious penalties. These might include things like license suspensions, jail time and increased insurance prices. Not least, it may lead to the requirement to get an SR-22. You don’t want to get these penalties, particularly the SR-22. They could each lead to severe financial punishment.

Why is Intoxicated Driving Unsafe?

One way to think of intoxication is as using an overwhelming substance. It muddles a driver’s faculties and often reduces their ability to process information. Some of the effects of intoxication might include:

Dizziness, blurred vision and problems hearing
Reduced attention span and memory retention
Amnesia and blackouts
Reckless or impulsive reactions
Decreased hand-eye coordination
Headaches
Breathing difficulties

And more.

It’s easy to see why getting behind the wheel while intoxicated might lead to problems. If you do not have alert, coordinated control of your vehicle and actions you could make mistakes. This could lead to accidents, injuries or even death, not just for yourself but for others. In 2016, nearly one-third of all traffic deaths in the U.S. involved an intoxicated driver. This is a signal for concern for all drivers.

The Penalties of Drunk Driving

Given the risks associated with drunk driving, it’s easy to see why it carries such stiff penalties. Every state institutes different penalties for DUI charges. Some might include:

License suspensions or points on the license
Revocation of vehicle registration
Arrest, jail time, house arrest or probation
Vehicle monitoring. This might include instances where you must blow into a breathalyzer device to start your vehicle.
Financial penalties

And more.

DUI arrests might also impact your ability to get affordable car insurance. Many drivers don’t think about how an insurance policy

After a DUI, you might face an increased policy premium, or even a denial of your coverage. Many drivers don’t think about what a DUI might mean to their car insurance providers. Car insurers determine premiums based on the risks that drivers present to them. It’s easy to understand how DUIs can easily demonstrate to your insurer that you are a high-risk operator.

Avoid SR-22 Penalties

After a DUI, the authorities might require you to get an SR-22 form. If you’ve never heard of an SR-22, now is a good time to familiarize yourself. You don’t want it to happen to you.

An SR-22 is a form that attaches to your existing car insurance. The form serves as a verification for the state that you have car insurance. Your insurance agent will send the DMV the SR-22, and you will have to keep the form active for a period of years.

States that use the SR-22 penalty can, in effect, force drivers to carry auto insurance. Like your insurer, your state will view a DUI charge as a signal that you present high operating risks. Therefore, they’re likely going to want you to carry car insurance. Your coverage will help guarantee to the state that you don’t pose as high a risk to other drivers.

Keeping your SR-22 will need attention. First, you make have to make adjustments to your existing insurance to qualify for the form. Afterwards, you must not let the policy lapse. If you do, the SR-22 period will likely start over. Other penalties might also arise.

Avoid Drunk Driving and Become a Safer Driver

You can avoid an SR-22 by being a safe driver. In the case of intoxicated driving, you can solve the problem through only one action—not driving drunk. To avoid this, take common-sense actions:

When drinking socially, take public transportation, a car service or a taxi.
Ask a member of your party to serve as a designated driver. That person will not consume alcohol. They’ll be your chauffer to make sure everyone gets around safely.
If you drive your car to an event, but become intoxicated, don’t drive home. Give your keys to a trusted, sober friend and ask them to drive you home. Or, leave your car at the establishment overnight and claim it later.
Even if you have one drink, realize that it might impact your faculties. Never drink without eating food and drinking water to help absorb the alcohol. Even if you feel fine, you might still become intoxicated. Should you make the choice to drive, only do so at your own risk.

Avoiding drunk driving will not only keep you safe, it will also protect others on the road. Driving while intoxicated is one of the most dangerous scenarios on the road. However, if you don’t do so, you’ll do your part to create safer roads for us all. Call us for a Chicago auto insurance quote at 877-999-2644.

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