In Illinois, motor vehicle insurance is mandatory. Registered vehicles must be insured for liability purposes with the following minimum limits: $250,000 for injury or death to one person in an accident; $50,000 for injury or death of more than one person in an accident; and $20,000 for damage to property of another. 625 ILCS 5/7-601 et seq and 625 ILCS 5/7-203.
Insurance is a contract
Insureds are the first parties to the contract. They pay premiums in exchange for payment by the insurance company for damages which arise out of covered accidents involving covered vehicles. The insurance company, the second party to the insurance contract, promises to pay covered claims by the terms of the insurance contract, so long as the insured, first party keeps all his contractual promises.
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