Driving on the road today can sometimes be treacherous. Because of this, it is mandated that all drivers must have valid insurance while operating a motor vehicle. When an officer pulls over someone for a traffic violation the first thing they will ask for is the driver’s license and proof of valid insurance. It is not a viable option to drive without auto insurance.
Often the cheapest kind of auto insurance to have is called “liability insurance.” It is called liability insurance because it protects the driver from paying for the damage to someone else’s property which he or she is liable for in the event of an accident. More simply put, this insurance will pay for any damage the driver caused to another person’s property, however this insurance does not cover the driver’s own property. The other type of auto insurance to have is full coverage, or collision and comprehensive insurance. This insurance is named because it will cover damages to the driver’s own vehicle in the event of an accident.
It is mandatory in most cases to have full coverage insurance on a vehicle which is still being paid for. This is done to protect the bank’s investment in the vehicle. Because the bank still technically owns a vehicle while the driver is making payments on it, having full coverage in the form of collision and comprehensive insurance ensures that the bank will still be able to get their money back despite the vehicle being worth less than it was at the time of purchase, in the event of an accident.
Illinois is no different than anywhere else in the United States when it comes to the legality of having valid auto insurance when operating a motor vehicle. In state of Illinois it is required that a driver at least have liability insurance with bodily harm coverage in order to operate a motor vehicle. Illinois law also states that it is required for all drivers with vehicles that still have a lenders name on the title to have full coverage insurance in order to protect the investment of the lending institution.
There are several online companies currently offering “state minimum coverage”. One should take special care to note make sure that these insurance plans actually do measure up to their states laws regarding minimum insurance requirements before signing a policy with one of these online dealers. In the event that the damage done in an accident is not covered by the insurance plan, the cost of the damage done will fall directly on the person at fault in the accident. There’s no reason to make payments to an insurance company that isn’t going to do what you’re paying them to do.