What happens if you get into an accident, your insurance company cancels your policy mid-term, or you have a bad credit score? We’re answering all of your burning questions about car insurance laws in Illinois.
Illinois’ at-fault system means that in an accident, the at-fault party is responsible for the other party’s property damages and bodily injuries. In other words, if someone hits your car, they are responsible for your losses.
Modified Comparative Negligence Laws
Imagine someone hit your car and their liability limits weren’t high enough to cover your losses or “make you whole,” as this concept is known in the insurance world. If that’s the case, you can sue the other party in civil court, but only if you were declared 50 percent or less at fault in the accident. If you were 51 percent or more at fault, you won’t receive any compensation from the other party.
Cancellation and Nonrenewal Laws
Insurance companies may cancel your policy mid-term or not renew it at the end of its term. However, the state requires that insurers give you advance notice before your policy expires.
- Mid-term cancellation: 30 days’ notice
- Mid-term cancellation due to nonpayment: 10 days’ notice
- Nonrenewal: 30 days’ notice
Do you own more than 25 motor vehicles? If so, you may be able to self-insure at the discretion of the Director of the Department of Insurance. If they allow it, you’ll receive a certificate of self-insurance, but you’ll have to first prove you can pay any judgments against you.
Laws in states like Massachusetts prevent insurance companies from basing pricing on the applicant’s credit score, gender, or marital status. But unfortunately for men and/or people with bad credit scores, that’s not the case in Illinois — here, they’ll see higher rates than women and/or people with good credit. As far as marital status goes, companies can take it into account, although not as part of someone’s credit score. Still, if you’re married, expect lower rates compared to your single days.