Liability

LIABILITY

Liability insurance is required for all motor vehicles that must display license plates. This includes cars, vans, motorcycles, recreational vehicles, trucks and buses but excludes trailers. Having liability insurance protects you from monetary losses that may result from a car accident and keeps you in compliance with state law.   

Types of Liability Coverage

Liability insurance is required in almost every state.  Even if it is not required in your state, it is worth the financial security.

Liability insurance has two types of coverages. They are:

Bodily injury coverage – pays for injuries suffered by others in an accident you are at fault for.

Property damage coverage – pays for damage you cause to another person’s property in an accident.

Liability Coverage Limits

Each state that requires drivers to have liability insurance has its own set of minimum limits your car insurance policy must meet. The limit refers to the maximum amount your car insurance company will pay in a claim.

As of 2015 per Illinois law (625 ILCS 5/7-601), cars must have the following minimum amounts in vehicle liability insurance:

  • $25,000 for injury or death of one person in an accident
  • $50,000 for injury or death of more than one person in an accident
  • $20,000 for damages to property of another person

Proof of insurance must be kept in a car and given to law enforcement upon request.

To ensure all registered vehicles have insurance, the state has a system that randomly selects vehicles.  If your car is chosen, you will receive a form asking for the insurance company and policy number assigned to it. Your answers will be verified with the insurance company to make sure the information is valid. If you do not have an insurance policy on the vehicle or if you fail to return the filled out form, your license plates will be suspended.

If you are stopped by a police officer or are involved in a collision, the responding officer may issue a ticket if you do not have proof of insurance. If convicted you are convicted of driving without insurance, your license plates will be suspended and the following fines will be applied:

  • minimum $500 fine for driving uninsured
  • minimum $1,000 fine for driving a vehicle while the license plates are suspended for a previous insurance violation

 Does Liability Insurance Cover Personal Damages?

Liability insurance only pays for bodily injuries or property damage suffered by others when you are at fault in an accident.

Your own injuries or property damage are not covered through liability insurance.

Do you need more information about liability insurance? Our agents and customer service representatives are here to help. Call us today at 1-888-949-6289 or visit your nearest Insurance Navy location. For your convenience, Insurance Navy is open from 8 a.m. to 9 p.m. CST, 7 days a week.

*Please review your own policy carefully for details on liability insurance. Liability insurance varies by insurance company.