Liability insurance coverage is mandatory in Illinois. Insurance policies must also contain uninsured motorist coverage. Failure to comply with the liability insurance requirement will result in suspension of the vehicle registration. In addition, convictions for driving a vehicle without insurance can lead to fines and to suspension of the vehicle owner's driver's license.
Mandatory Liability Insurance
Illinois law requires motor vehicle owners to purchase liability insurance coverage. The requirement applies to all types of vehicles that must display Illinois license plates. As of July 2009, the minimum amount of liability coverage that will satisfy the requirements of state law is $20,000 for the injury or death of one person in an accident, $40,000 for the injury or death of two or more persons in an accident, and $15,000 for property damage.
Uninsured Motorist Coverage
Liability insurance policies issued in Illinois also contain uninsured motorist coverage. This coverage is always included in a liability insurance policy, and need not be purchased separately. The amount of required uninsured motorist coverage is the same as the minimum amount of liability insurance coverage mandated by state law.
Proof of Insurance
When an owner submits a vehicle registration renewal application, his signature on the application indicates that he agrees to maintain the required insurance coverage throughout the registration period. Owners must carry an insurance card, issued by the insurance provider, in their vehicles. An owner must produce the insurance card upon the request of a law enforcement officer.
Enforcement
Illinois uses a random questionnaire procedure to enforce the liability insurance requirement. The state sends an insurance verification form to vehicle owners whose motor vehicle registration records were random selected with a computer program. If a vehicle owner fails to return the insurance verification form, or if liability insurance was not in effect on the date listed on the form, the vehicle registration will be suspended.
In addition, the state will suspend a vehicle registration if a vehicle owner receives a traffic ticket and then is also convicted of operating a vehicle without insurance. The owner's driver's license will also be suspended for three months.
Fines
As of July 2009, the minimum fine in Illinois for operating an uninsured vehicle is $500. The minimum fine for operating a vehicle while the registration has been suspended for lack of insurance is $1,000. For a first offense, the vehicle registration is suspended until the owner pays a $100 reinstatement fee and submits proof of insurance. A repeat offense will result in a four-month suspension. An owner who commits a third offense, or who is placed under court supervision for violating the liability insurance requirements, must file proof of financial responsibility with the state for three years. Failure to submit proof of financial responsibility will lead to suspension of the owner's driver's license.
Tags: vehicle registration, insurance coverage, driver license, liability insurance, liability insurance, motorist coverage, owner driver
