The Illinois insurance industry has weathered troubles in the market over the past several years, but has managed to continue providing service to the state’s residents in an effective manner. The Illinois Insurance Department is responsible for ensuring that the state’s insurance industry does not spiral out of control or take advantage of consumers. Consumers are also obligated to adhere with the state’s insurance regulations in order to allow companies to operate freely within Illinois.
All drivers in Illinois are required to hold auto insurance for their vehicles. Because comprehensive auto insurance coverage can be somewhat expensive, the Illinois Insurance Department has established minimum standards concerning coverage that consumers are required to hold. Policies that adhere to the state’s minimum insurance requirements are often less expensive than those that offer more comprehensive coverage.
Illinois is considered one of the most expensive states in terms of auto insurance coverage. The average premium drivers can expect to pay in Illinois is $1,476.
According to state regulations, drivers must carry a minimum of $20,000 one person; $40,000 for bodily injury of more than one person; and $15,000 for property damage. Drivers are also required to carry insurance to protect against uninsured motorists. This coverage must account for $30,000 for bodily injury per person and $40,000 for bodily injury as a total per accident. Drivers are not required to carry personal injury protection (PIP) coverage by the state.
Illinois has fallen victim to natural disasters in the past and is somewhat notorious for its bitter winters that can produce hazards for homes and properties. The Illinois Insurance Department has established rules and regulations that prevent insurance companies from taking advantage of consumers during times of natural disasters. Regulators also keep a keen eye on the insurance premiums that come from companies to ensure they are not too excessive for consumers. As in other states, homeowners insurance is not mandatory in Illinois, though it is highly recommended to protect homes from natural disasters.
Illinois is home to more than 12 million people. Approximately 13% of the state’s population currently has no health insurance coverage. This may present a problem in 2014, when all U.S. citizens are required to hold health insurance coverage per the Affordable Care Act. In an effort to provide consumers with affordable coverage, the law requires states to host their own health insurance exchange program.
Insurance News Update: Illinois is one of several states that will build its own health insurance exchange system. The Illinois Insurance Department is partly responsible for forming the regulations that will govern the exchange, while state legislators are working on determine what the minimum level of coverage consumers can receive from policies through the exchange will be.