Illinois Auto Insurance Requirements and Law:

Illinois requires higher insurance minimums than average and issues heavy penalties for those who fail to comply with its insurance requirements. Illinois requires motorists to have three types of insurance: Bodily Injury Liability (BIL), Property Damage Liability (PDL), and Uninsured Motorist Coverage (UIM). Specifically, it requires a minimum of $20,000 of BIL per each person injured in an accident and $40,000 of BIL to cover total bodily injury per accident. Illinois also requires at least $15,000 of PDL for each accident. For UIM, there are minimum requirements of $20,000 and $40,000, respectively covering each person injured and each group’s total bodily injury per accident.

BIL covers the injuries suffered by those of the no-fault party in an accident. It pays for not only the medical costs for their injuries, but also their lost wages, pain and suffering, and funeral costs.

PDL pays for property damage brought on another person’s property during the accident, whether this property includes a vehicle, a telephone pole, or a traffic sign. It does not cover the damage done to your own car in a crash; for that, you need to purchase Collision Coverage as part of your policy.

UIM covers the same aspects of BIL but applies to an accident caused solely by an uninsured or underinsured person. Under this coverage, the policyholder, his dependents, and any other person eligible to collect damages would receive payment for medical costs, lost wages, pain and suffering, and funeral costs. Basically, the insurance company reimburses the insured person for the amount the uninsured person would have to pay, if insured. The minimum limits of this coverage are $20,000 per person injured and $40,000 per accident.

UIM also entitles the insured party to collect property damages committed by an uninsured motorist, such as automobile damages and household damages. This property coverage provides for $3,500 if the policy excludes Collision Coverage and Comprehensive Coverage.

Illinois Mandatory Insurance Law requires that an Illinois-residing motorist carry a state-issued insurance card with him in case a state officer requests to see it as proof of insurance. The motorist obtains this insurance card when he first purchases an insurance policy or renews it. If he is caught without proof of state-required insurance, he will face suspension of his license plates and registration, as well as a $500 fine. In order to override the suspension, he must provide proof of state-required coverage and pay a $100 reinstatement fee.

Illinois enforces this Mandatory Insurance Law by a randomized computer selection process. A state-operated computer randomly selects a vehicle and sends a questionnaire to the owner asking for insurance information. If the respondent fails to submit this questionnaire, he faces suspension of his license plates and registration.

If a person’s license plates are suspended, Illinois permits him to drive an insured vehicle that is not his own, as long as he has the insured person’s permission. On the other hand, no one is permitted to drive his own vehicle because of its suspension of registration.

Illinois Auto Insurance Requirements:

• Bodily Injury Liability: $20,000 to $40,000 Limit
• Property Damage Liability: $15,000 Limit
• Uninsured Motorist Bodily Injury: $20,000 to $40,000 Limit

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