- No-fault states do not take into account what driver is the one that caused an accident when it comes to damage repayment.
- Tort or at-fault states assign guilt based on percentages, and the person who is responsible for a collision will have to pay the injured party.
- Illinois is an at-fault state where drivers who cause an accident can get sued for medical expenses, property damages, and lost wages.
- Obtaining an insurance policy is a process that should include an analysis of multiple companies and offers.
Many drivers who operate a motor vehicle may not know if their state is an at-fault (tort) or no-fault car insurance state. Since drivers can be unaware and inexperienced when it comes to auto insurance laws, it makes sense that those who were never in an accident wouldn’t know.
No-fault insurance states enable their drivers to recover financial losses from their insurance companies, regardless of the fault in an accident.
Tort insurance states, on the other hand, hold the driver who caused the accident accountable, and they must pay the injured party for medical expenses, loss of wages, costs of repair, and more.
Currently, 38 states operate under a fault-based system, and 12 states utilize the no-fault approach.
One of the most significant differences is that drivers in the no-fault states won’t need to purchase extra coverage (PIP) for medical bills. Also, the tort states come with higher court expenses when there are lawsuits involved, but proponents of this system claim how guilt-based approach is fairer.
If you’d like to be fully covered in case of an accident, enter your ZIP code below and start comparison shopping for better auto insurance today!
What about Illinois?
https://www.youtube.com/watch?v=TYRWtrXgZlo
Illinois is an at-fault or tort car insurance state. Residents involved in accidents will be held accountable based on their percentage responsibility in the collision.
Uninsured Motorist Coverage is mandatory, and every policy sold in Illinois must include it.
In case of an accident itself, the person who is deemed responsible for causing it will have to pay the injured party. The payment amount will depend on injuries, property damages, and other factors.
Since Illinois is a tort insurance state, legal ramifications are not restricted as they tend to be in the no-fault states. The victim will not have to go through their own insurance policy and exhaust all the coverage, but can just file a lawsuit against the guilty party immediately.
Insurance Laws in Illinois
Minimum insurance is what drives the amount of coverage that insurance companies must provide and drivers must obtain. The numbers are usually based on historical patterns and cost of living in the state, and drivers must obey the laws at all times.
The minimum coverage that is required in Illinois includes the following:
- $20,000 for the injury or death of one person (yourself, a passenger, another driver, pedestrian, etc.)
- $40,000 for the injury or death of more than one person in a single accident
- $15,000 for property damage
As previously mentioned, Uninsured Motorist Coverage is mandatory in this state and drivers who do not have this within their policies can be a subject to fines and traffic citations.
– Additional Coverage
Besides the minimum coverage that is obligatory, there are types of optional insurance that drivers can purchase to get extra protection. A few of these options include collision, comprehensive, and glass coverage:
- Collision Coverage: Reimburses drivers for damages caused by accidents with other cars or objects and will protect people under at-fault scenarios, as well as any damages obtained from potholes or vehicle rolling
- Comprehensive Coverage: Accounts for all non-accident factors where a driver might get their car stolen, vandalized, burned, flooded, or hit by a rock or a tree; comprehensive considers every possible scenario and provides damages for it
- Glass Coverage: Reduces windshield, side windows, rear windows, or glass sunroof’s repair or replacement costs. Getting hit by a flying rock on a freeway is a fairly common occurrence, and glass and comprehensive coverage are the only two ways to get the insurance company to pay for the repair.
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– Driving an Uninsured Vehicle
Thinking that the law enforcement has no way to find cars that are uninsured is wrong. Technology developments have paved the way for license-plate scanners that can read and obtain information on any given vehicle.
Thus, the real question is not will one get caught driving without insurance, but when will this happen.
https://www.youtube.com/watch?v=PeGYyKwrnvw
The first offense of this nature will result in:
- A $500-1,000 fine
- Residents of Illinois will also get their license plates suspended until they show proof of insurance
- Pay a $100 reinstatement fee
A second or reoccurring offense would come with a $1,000 flat fine if there were no infraction. There would also be the $100 reinstatement fee once again for a suspended license.
If another person was injured and it’s more than the second time a driver is breaking this law, the fine goes up to $2,500, and the license plates will get suspended for four months.
There are plenty of non-monetary problems that will arise as well. The main issue will be high costs related to insurance policies. Almost all insurance providers deem drivers who have violated insurance laws in the past as high-risk drivers.
Being labeled high-risk is why their premiums tend to be skyrocketing. Thus, purchasing an insurance policy is a lot easier than dealing with hefty fines and suspensions.
Find the Best Car Insurance Coverage in Illinois
To find the best quote, drivers must research many different companies. Factors like age, gender, race, ethnicity, driver’s history, and location all play a role, and different companies will give each factor different weight.
Rates offered by different providers will rarely match.
Even those that might have an insurance policy they think is perfectly fine should do on-going research. Rates go up and down, and failure to keep up with these changes can result in an overpayment. The optimal scenario is to compare three to four insurance offers every six months. Check out the tips from eHow in the video above.
— Is the insurance company financially healthy?
When dealing with premiums and coverage, a decision should not be made solely based on a low rate. It is not uncommon that businesses on a downward trajectory will reduce their rates to bring in new clients and cover their debt.
Therefore, ratings on the financial health of insurance companies by five particular, independent agencies would come in handy. These five agencies are:
These agencies provide an objective and unbiased opinion on the financial standing of any given insurance company. It is important to not rely on what insurance companies say about these reviews as they will often favor positive ratings and undermine the negative ones.
Also, understanding the rating scales is a must since an A+ under A.M. Best is the highest rating, while the same grade is the 5th highest for Fitch, Kroll, or Standard & Poor’s.
Drivers can further take full advantage of Consumer Reports and JD Powers; both know to provide unbiased product ratings and reviews.
— Don’t Give Money Away!
Insurance companies often provide discounts for things like:
- Good driving record
- Good students
- Low mileage
- Military members
- Senior-citizen
- Multi-vehicle policies
- Anti-theft devices
- Driver education courses
By not taking advantage of these, the driver is willingly paying the company more than necessary and spending additional capital. Saving money is possible as long as the right amount of research is done and communication with the company is up to par!
Looking to save on auto insurance? Enter your ZIP code above and compare at least three to four policies today!