Illinois Auto Insurance

The state of Illinois is a Tort state.  This means that someone will be declared at fault for each accident.  If the state declares an individual as the cause of an accident, the named person will be required to pay all the damages which result from the accident they caused.  This will include all medical bills and vehicle repairs.  For this reason, insurance companies may encourage you to purchase more than the minimum auto liability insurance required by the state of Illinois.  If a car is financed, you will most likely be required to carry comprehensive and collision coverage on the vehicle to offset the risk to the lending agency.  You are not required to carry uninsured and underinsured motorist coverage by the state.  If you choose to reject this coverage, you will be required to sign a statement to that effect. 

Insurance companies in Illinois do not have to cover members of your household.  This decision can be made by the insurance company for legal reasons or by you.  The exclusions must be covered in the exclusion section of your policy as well as all the various situations which will allow the insurance company to refute a claim.  Even though you do not have to list everyone on the policy, the company may request it.  If you do not comply with the company’s request, they can deny the claims on any persons not included on the policy.  If your insurance lapses for any reason you will be considered as breaking the law concerning mandatory insurance requirements and you can be charged as such if you are caught driving.  You will pay a minimum fine of $500.00 and a reinstatement fee of $100.00 for your registration.

In the state of Illinois, the insurance company is allowed to check out your personal credit history when offering you insurance and setting your premium rates although many insurance companies do not use your credit history when offering you insurance.  Illinois insurance companies place more importance on your driving record, vehicle you drive, sex and age as well as the number of the drivers to be included on the policy, and where you live.

The average insurance premium in Illinois was about $740.00 as of 2006.  Illinois was ranked as having the 27th highest premium average in the United States.  There are 48 state approved insurance companies doing business in the state of Illinois.  The following companies may sell auto insurance in Illinois as of 2002:  Affirmative Insurance Company, Allstate Insurance Company, Alpha Property & Casualty Insurance Company, American Access Casualty Company, American Ambassador Casualty Company, American Family Mutual Insurance Company, American Freedom Insurance Company, American Heartland Insurance Company, American Service Insurance Company, Inc., Apollo Casualty Company, Auto Owners Insurance Company, Inc., Chicago Motor Club Insurance Company, Constitutional Casualty Company, Country Mutual Insurance Company, Economy Preferred Insurance Company, Economy Premier Assurance Company, Farmers Automobile Insurance Association, Farmers Insurance Exchange, Founders Insurance Company, GEICO General Insurance Company, General Casualty Company of Illinois, Grange Mutual Casualty Company, Hartford Accident & Indemnity Company, Hartford Insurance Company of the Midwest, Illinois Farmers Insurance Company, Illinois National Insurance Company, Indiana Insurance Company, Interstate Bankers Casualty Company, Liberty Mutual Insurance Company, Madison Mutual Insurance Company, Medmarc Casualty Insurance Company, National Heritage Insurance Company, National Mutual Insurance Company, Progressive Casualty Insurance Company, Progressive Halcyon Insurance Company, Prudential Property & Casualty Insurance Company, Safeco Insurance Company of Illinois, Safeway Insurance Company, State Farm Fire & Casualty Company, State Farm mutual Automobile Insurance Company, Unique Insurance Company, United Automobile Insurance Company, United Equitable Insurance Company, United Services Automobile Association, Universal Casualty Company, USAA Casualty Insurance Company, West American Insurance Company, and Western States Insurance Company.

Things that can help you reduce the cost of your insurance premiums include a clean driving record, the type of vehicle you choose to drive as well as the number of miles you drive per year.  The fewer miles you put on your vehicle each year, the lower your chances are of being involved in an accident.  The reduction in accident risk can translate into a reduction in premiums.  Furthermore, a clean driving record reduces your risk of an accident. 

It will be more expensive to insure a luxury car or a sports car.  You should also keep in mind that insurance premiums will generally be higher on vehicles which are a targeted by thieves.  The cars that made the top 10 stolen vehicles in Illinois are:

1. 1991 Toyota Camry
2. 1994 Oldsmobile Cutlass
3. 2004 Chevrolet Cavalier
4. 1992 Chevrolet Van
5. 1989 Chevrolet Caprice
6. 1993 Ford Taurus
7. 1990 Buick LeSabre
8. 1994 Dodge Caravan
9. 2004 Pontiac Grand Am
10. 2000 Dodge Intrepid

Safety devices such as anti-lock brakes side air bags, automatic seat belts and daytime running lights may also reduce your premiums along with anti theft devices like an alarm system and global positioning systems.  Parking your car in a garage or secured area is another way to reduce your premiums.  Where you live will affect your insurance rates which can be affected by weather extremes, high theft risk, and high traffic patterns.  Prior accident claims will also be a red flag to insurance companies especially if there are several claims on your past record.  The amount of your deductible is also a key factor when determining insurance rates.  The higher your deductible is, the lower your insurance rates will be.