Auto Insurance Policy Lawsuits: Illinois Time Limit

In Illinois, auto insurance policies can limit the time to bring a suit. The state has a fault-based insurance system, meaning the driver who caused the accident is responsible for covering the damages. Illinois law requires drivers to carry liability insurance, which covers injuries, property damage, and other losses caused by the driver, up to the coverage limits. The minimum liability coverage in Illinois is $25,000 for bodily injury or death of one person, $50,000 for bodily injury or death of more than one person, and $20,000 for property damage. These coverage limits can be increased for an additional premium, providing greater protection in the event of an accident.

Illinois auto insurance minimum requirements

Illinois law requires all vehicle owners to have a minimum amount of auto liability insurance. This is to protect you financially if you are in an auto accident. Liability insurance does not cover you or your vehicle, but it does cover other individuals and their vehicles if an accident is your fault. Passengers in your vehicle are also covered.

The minimum liability insurance in Illinois is:

• $25,000 bodily injury coverage for each injured person
• $50,000 bodily injury coverage total per accident
• $20,000 property damage coverage per accident

Uninsured motorist coverage is also required in Illinois. This covers medical claims that are the fault of another driver who is either uninsured or in a hit-and-run. The minimum coverage for this is:

• $20,000 bodily injury liability per person
• $40,000 bodily injury per accident

Underinsured motorist coverage is also necessary. This applies to personal injuries caused by a driver with inadequate insurance. It kicks in after their personal injury coverage limit has been reached. The minimum coverage for this is:

• $25,000 bodily injury per person
• $50,000 bodily injury per accident

Illinois requires proof of insurance at all traffic stops, and insurance verification questionnaires are sent out randomly. If you do not have insurance, your license plates will be suspended.

Illinois uninsured motorist coverage

Illinois law requires all drivers to have uninsured motorist coverage as part of their insurance policy. This coverage is used to pay for injuries to you and your passengers in the event that an uninsured driver hits your vehicle. The minimum uninsured motorist coverage required in Illinois is $25,000 per person and $50,000 per accident. This means that if you are in an accident caused by an uninsured driver, your insurance will cover up to $25,000 of injuries per person, and up to $50,000 total for all injuries in the accident. Uninsured motorist coverage does not include damage to your vehicle, but you can purchase uninsured motorist property damage coverage separately. This will cover the cost of repairing or replacing your vehicle if it is damaged or totaled in an accident with an uninsured driver.

Underinsured motorist coverage is similar to uninsured motorist coverage, but it applies when the at-fault driver has insurance, but their policy limits are not enough to cover your expenses. In this case, your insurance company will cover the expenses that exceed the limits of the other driver's policy, up to your underinsured motorist coverage limits. Like uninsured motorist property damage coverage, underinsured motorist coverage for property damage can be purchased separately.

It is important to remember that uninsured and underinsured motorist coverage only applies to bodily injury in Illinois. To have your property protected, you must purchase separate coverage. Additionally, while Illinois has provided a baseline for insurance coverage, a policy limit of $25,000 or $50,000 may not be enough to fully compensate you for your injuries. Therefore, it is recommended that you consider purchasing additional coverage to protect yourself and your assets in the event of an accident.

Illinois insurance verification

Illinois requires all vehicle owners to have a minimum amount of auto liability insurance. This includes bodily injury liability and property damage liability. The minimum requirements are:

• $25,000 bodily injury per person
• $50,000 bodily injury per accident
• $20,000 property damage per accident

In addition, Illinois law requires automobile liability policies to include a minimum level of uninsured motorist (UM) bodily injury coverage and underinsured motorist (UIM) bodily injury coverage. Uninsured motorist coverage protects you if you are injured by a hit-and-run driver or a driver without insurance. Underinsured motorist coverage pays the difference between your UIM limits and the liability limits of the at-fault driver if their limits are lower than your UIM limits.

Illinois also requires vehicle owners to carry proof of insurance. If you are unable to provide evidence of insurance, you may be issued a traffic citation, and your license plates may be suspended. Fines for driving without insurance in Illinois include:

• A minimum fine of $500 for driving uninsured
• A minimum fine of $1,000 for driving with suspended license plates due to a previous insurance violation

To enforce these requirements, Illinois has implemented the Electronic Liability Insurance Verification program, which began in 2020. This program uses a third-party vendor to verify that each vehicle's liability policy is valid at least twice per year. If a vehicle is found to be uninsured, the owner will be notified and given 30 days to provide proof of insurance. If the owner cannot provide proof, their vehicle registration will be suspended, and they will be required to pay a $100 fee to reinstate their registration.

Illinois insurance penalties

Illinois has strict penalties for driving without insurance, and it is illegal to do so. The state has an Electronic Liability Insurance Verification program that automatically checks, at least twice a year, that all registered vehicles meet the legal limit for liability coverage. If a vehicle is found to be uninsured, its registration will be suspended.

The first offense of driving without insurance is considered a petty offense, and drivers may be fined at least $500 but no more than $1,000. For a driver convicted of uninsured driving three times or more, the fine may increase to $1,000. If an uninsured driver causes an accident in which there are injuries, it is considered a Class A misdemeanor, and the driver could be fined up to $2,500, as well as facing additional fees and possible imprisonment.

Drivers who are first-time offenders will have their licenses suspended for up to three months, with an additional six months or more if they are caught driving during the suspension period. Repeat offenders will also have to pay a $100 reinstatement fee.

If an uninsured driver is involved in an accident, the consequences depend on who was at fault. If the uninsured driver is found to be less than 50% at fault, they can file a third-party claim through the other driver's insurance for any bodily injuries or property damage. However, if they are found to be more than 50% at fault, they will be responsible for covering the other driver's uninsured motorist coverage.

Illinois also has penalties for insurance companies. If a company is unlicensed, it does not have to comply with state insurance laws or participate in the Insurance Guaranty Fund, which protects policyholders if the company goes bankrupt.

Illinois insurance disputes

Illinois insurance law requires all vehicle owners to have a minimum amount of auto liability insurance. This includes bodily injury coverage, which covers the costs associated with the injury or death of another person involved in the accident, and property damage coverage, which covers damage to another person's car or property.

In the event of an insurance dispute, the first step is to contact the Illinois Department of Insurance directly by calling their toll-free consumer line at 866-445-5364. You can also submit a complaint to the Department online. Once they receive your complaint, they will notify you of the file number and send a copy of the complaint to your insurance company. An analyst will then review the response from the insurer, along with your complaint, and decide on the appropriate course of action.

If the dispute cannot be resolved informally, you may have to file a lawsuit against your insurance company. In such cases, it is advisable to seek legal counsel to understand your rights and options. The Illinois State Bar Association sponsors an Illinois Lawyer Finder service that can refer you to a lawyer in your area for an initial consultation at a rate not exceeding $25.

It is important to note that Illinois has a fault-based insurance system, meaning the driver who caused the accident is responsible for covering the damages, including medical bills, car repairs, lost wages, and pain and suffering. As such, liability insurance is crucial for protecting yourself financially in the event of an accident.

Frequently asked questions