AUTO INSURANCE LAWS IN ILLINOIS Illinois law states that no person can operate, register or maintain registration of a vehicle, nor let another person operate that vehicle, without a liability insurance policy. Furthermore, the law requires you to have this proof of insurance within the vehicle. Violation of this provision may result in significant financial penalties and even the loss of driving privileges. The liability coverage in your policy does two things for you: Your insurance company will hire and pay for a lawyer to defend you in a claim or lawsuit arising out of an accident. Second, the company will, up to the policy limits, pay for property damage and injuries to others caused by your negligent operation of a vehicle. If a driver claims that the other driver was at fault and should pay for his or her injuries and damage to the vehicle, the driver will need to decide whether to accept a settlement from the at-fault driver’s insurance company. If a settlement is accepted, the court will waive the right to have a jury determine the value of the case. The at-fault party and his or her insurance company will want you to sign a “release” to indicate the terms of the agreement. By signing it, any further claims against the party must be given up. Before signing such an agreement, it may be best to consult with an attorney. In the event that a driver is at fault, and the claim against him or her exceeds the amount of liability limits, the at-fault driver would have to pay the excess amount. If he or she does not have sufficient funds, the at-fault driver may be forced to liquidate assets and perhaps be subject to garnishment of wages. The insurance limits required are not less than $20,000 for bodily injury to or death of one person and not less than $40,000 because of bodily injury to or death of two or more persons in any one motor vehicle accident. A liability coverage limit of not less than $15,000 for injury to or destruction of property is also required. The “Declarations” page of an insurance policy describes the types of coverage and the limits for each. An insurance agent should help to determine the appropriate amount of coverage, and evaluate on an annual basis to make sure that the coverage is adequate. Generally, liability limits should be sufficient to protect assets and income against collection. It is also advisable to purchase an “Umbrella” policy that protects a driver if he or she is at fault in a catastrophic collision. These policies are a type of supplemental insurance that increases normal liability limits to a higher amount. Typically, they are sold in increments of one million dollars for a relatively small additional premium. Keep in mind that the less liability coverage, the more likely it will be that personal assets could be exposed to a judgment for monetary damages. An insurance company is not obligated to satisfy the amount of any judgment over the liability limits of the policy. A minimum level of coverage for uninsured motorist and underinsured motorist is also required by Illinois law, and drivers may choose to have high levels of this coverage in case they are involved in an accident where the other driver is not able to compensate for damages to the insured driver’s vehicle or for injuries sustained in the accident. This coverage should be sufficient to replace or supplement income if unable to work, and it should pay for the damages that would have been collected from an at-fault driver. Note: This information was prepared as a public service by the ISBA. Every effort has been made to provide accurate information at the time of publication. For the most current information, please consult your lawyer. John Delaney is a member of the ISBA and Madison County Bar Association. If you need a lawyer... John Delaney, Attorney at Law 618-259-0500 [email protected]
Posted on: Fri, 22 Aug 2014 02:41:16 +0000
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