Commercial Auto Insurance Minimum Requirements in Illinois
Those driving commercial vehicles must adhere to the same financial responsibility requirements as those for private vehicles. That's because the costs associated with accidents can be staggering, and the Illinois Secretary of State's (SOS) office needs some assurance that all vehicle owners are capable of dealing with the possible financial consequences of driving.
Ways to Establish Financial Responsibility
You must prove your financial responsibility to the SOS by having a current vehicle liability policy that meets the state's minimum requirements.
Determine Whether You Need Commercial Insurance
Trying to understand if you need commercial insurance or if personal insurance will suffice can be difficult. Answering the following questions can get you started on the correct path:
- How many vehicles need to be insured?
- What types are they?
- How will they be used?
- Who will drive them?
- Who owns them?
Generally, business-owned vehicles need commercial insurance protection; this also applies to private vehicles used for farming, deliveries, and fee-based personal transportation.
If you work for a company and drive a vehicle on its behalf, it's quite possible your employer will automatically take care of the insurance matter for you. But, check to be sure. If you're self-employed or a sole proprietor, the insurance burden shifts to you.
Your likelihood of needing commercial liability insurance increases if any of these situations apply to you:
- You can't remove your business equipment from your vehicle.
- Your employees use your vehicles for business purposes.
- You can't find a private vehicle insurance policy with adequate coverage limits.
You may need to partner with both the SOS and an insurance carrier to make the right decision. The SOS can advise you on the legal requirements for your business; the insurer can help you determine the amounts and types of coverage you need to protect your business assets.
Determine the Required Amount of Coverage
Should you decide to opt for a commercial policy, be ready to talk about the following with an insurance agent or representative:
- How the vehicles are used
- How much they weigh
- Who owns the vehicles
But, you also might need to discuss other matters such as how much the vehicles are worth, what sort of cargo they'll carry, and if they have any special type of equipment.
Purchase a Commercial Policy
Once you've decided on the types and amounts of coverages you need, the next step is to take out a policy. You'll have many choices in carriers, including those providers who only sell commercial policies. It's best to comparison shop―online or by phone―to find the fairest rates and widest coverages. Many insurers offer a multiple policy discount, so don't overlook your current carriers.Choose a State:
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