Auto Insurance Shopping Guide

Auto insurance helps protects you from financial losses such as vehicle repairs, medical bills, and legal services that could result from an auto accident. Illinois law (625 ILCS 5/7-601) requires all vehicle owners to have minimum amounts of auto liability insurance. In addition, lending institutions may require physical damage insurance (collision coverage) for a financed vehicle.

Helpful Tips When Shopping For Insurance

Find a reliable insurance company.

• Contact the Department to find out if a company is licensed in Illinois. Unlicensed companies are not required to comply with state insurance laws or participate in the Insurance Guaranty Fund which protects policyholders if a company goes bankrupt.
• Check a company’s complaint ratio. Our website lists complaint information for companies with ten or more auto insurance complaints.
• Check a company’s financial stability to ensure that it can pay its claims.
  

Find a reliable insurance agent. Some companies sell through local agents and some through direct marketing or group plans. Ask people you know and respect for their recommendations. Look for a licensed insurance agent (insurance producer) who is reliable and helpful in answering your questions. You can look up an agent’s license status at NAIC - State Based Systems (SBS).

Shop carefully. You should shop around for the best insurance product at the best price. Determine what coverage you need and what it will cost. Obtain more than one quote. Do not be rushed into buying a policy by high-pressure sales tactics or be misled by advertising.

Required Auto Insurance Coverages

Liability Coverage – Pays for bodily injury to another person or property damage you cause due to the negligent operation of a vehicle. It may also pay if the accident was caused by a member of your family living with you or a person using your vehicle with your permission. The coverage may also pay for a legal defense if you’re sued because of the accident. Liability coverage is often split into two separate coverages:

• Bodily Injury (BI) – Pays for costs due to injury or death to a pedestrian(s) or person(s) in another car. It may also cover your passengers’ injury costs as long as they aren’t members of your household. Illinois law (625 ILCS 5/7-203) requires BI limits of at least $25,000 per person per accident and $50,000 total per accident.
• Property Damage (PD) – Pays for damage to another person’s car or property such as fences, buildings, utility poles, signs, and trees. Illinois law (625 ILCS 5/7-203) requires PD liability limits of at least $20,000 per accident.

Note: Consider buying higher limits. The state minimums may not be enough to fully protect you from lawsuits.

Uninsured Motorist Bodily Injury Coverage (UM) – Covers you for your bodily injury caused by a hit-and-run driver or an at-fault driver who has no auto liability insurance. Currently, Illinois uninsured motorist bodily injury minimum limits are $25,000 per person and $50,000 per accident. For additional premium, you may buy higher limits to pay for claims that exceed those amounts.

Underinsured Motorist Bodily Injury Insurance (UIM) – Pays the difference between your UIM limits and the liability limits of the at-fault driver, if lower than your UIM limits. Illinois law (215 ILCS 5/143a-2) requires this type of coverage if you purchase higher limits of uninsured motorist bodily injury coverage (UM).