Auto Insurance Rates In Illinois Will Go Up If Illinois Hb3064 Of Rep Lou Lang Is Enacted
Auto Insurance Rates in Illinois will go up if Illinois House Bill HB3064 proposed by Representative Lou Lang (D) of the 16th District gets a pass. Minimum auto insurance limits in Illinois as well as many other states, have been the subject of criticism in the past few years. The current limits which has not been changed since it was introduced by the Illinois General Assembly which approved the law in 1988, and made it effective on Jan. 1, 1990. The percentage of Illinois uninsured motorists dropped from 19% prior to implementing the law to 6% one year after implementing the law, according to the figures provided by State officials in the Chicago Tribune (Number Of Illinois' Uninsured Motorists Drops To 6%, by By Rob Karwath, January 8, 1991.)More recent studies suggest that Illinois is one of the states with the highest uninsured motorists. According to the Insurance Research Council, IRC Estimates More Than 14 Percent of Drivers Are Uninsured, with Illinois scoring 14% to 16% in the past 10 years, or just about the national average. Clearly imposing the insurance mandatory laws has helped, but not that much, percentage wise.
Illinois House Bill HB3064 suggests enhancing the minimum mandatory limits for auto liability insurance in Illinois and increasing the amounts adequate to meet a sentence after an auto crash as follows: bodily injury or death to any one individual from the current limit of $20,000 to $50,000; bodily injury or death to more than one individual from the current limit of $40,000 to $100,000; and damage or destruction of property of people other than the insured from the current limit of $15,000 to $40,000 each accident.If the Illinois House Bill HB3064 is enacted it will lead to a lot of non standard companies that offer low auto insurance rates in Illinois either out of business or will force these companies to restructure their entire marketing and operational strategies, including marketing, finance, underwriting, operations, etc. Considering that the vast majority of non standard auto insurance companies in Illinois offer only the minimum limits or something very close to that, but surely much less than what the Illinois House Bill HB3064 suggests, enacting the Bill will eliminate the concept of low cost auto insurance in Illinois.
There will be significant hike in car insurance rates in Illinois, and therefore the already high percentage of uninsured motorists in Illinois will go even higher! Low cost auto insurance, which is the backbone of many insurance companies and Chicago auto insurance agencies, has a critical social and economic roles. Many people cannot afford higher limits because of their driving status, bad driving records, or simply for no fault but bad credit record. There are also some people who will not qualify for it because of their risk status or lack of proper driver's license.
Illinois insurance professionals including financial planners and consultants understand the importance of high automobile insurance liability limits. It will be devastating for a victim of a serious car crash if the other at fault party has the present low liability limits. But we, all of us, can purchase higher uninsured motorist bodily injury limits if we think that the public is not having enough liability insurance. Instead of forcing high limits on everyone, hence resulting in significantly higher uninsured motorists, it would be a better choice to make sure that you have a sound financial plan that will protect you, your family, as well as your wealth and health from all events including the event of being hurt by a motorist who has low liability insurance limits.
posted on Wednesday, April 5, 2017