Mandatory Insurance Law Effective 1/1/2008

If you don't have proof of auto insurance when the Police stop you for an accident or violation, a new penalty will be enforced that declares a person convicted a third or subsequent time for driving without insurance must maintain proof of insurance for a minimum period of 3 years (rather than one year).

AUTO COVERAGES

Property Damage Coverage: Damage to the property of others caused by the insured.

Bodily Injury Coverage: Pays for Bodily Injuries to others caused by insured driver.

Uninsured Motorist Coverage: Pays you and those covered by your policy up to the limits of your policy for injuries if the other driver is liable and has no auto insurance coverage.

Underinsured Motorist Coverage: Pays you and those covered by your policy up to the limits of your policy if the other driver is liable and has auto insurance coverage which is below your policy coverage.

Medical Payments Coverage: Pays you and those covered by your policy for supplementary medical expenses up to the limits of your policy which result from an accident.

Deductible: The amount of the loss which you pay before your insurance company begins to pay. For example, if you have damage to your vehicle of $1,000 and you have a $500 deductible you pay the first $500 and the company will pay the remaining $500. The higher your deductible, the more you will have to pay in case of an accident, but the lower your premiums will be

Collision Insurance: Covers physical damage to the insured's automobile (other than that covered under comprehensive insurance) resulting from contact with another object.

Comprehensive Insurance: Auto insurance coverage providing protection in the event of physical damage (other than collision) or theft of the insured car. For example, fire damage or a cracked windshield would be covered under the comprehensive section.

Rental Reimbursement: Pays for some or all of the cost of a rental car while your car is being repaired or replaced if it is involved in a collision

Towing: Pays for towing if your vehicle is disabled in an accident.

SR-22: A document required as proof of financial responsibility (insurance) by the court under Illinois law for a person convicted of certain traffic violations. It must be filed by an insurance company stating that auto liability insurance is in effect for that person.