Commercial auto insurance in Illinois

Any Illinois company that uses vehicles for business purposes must insure them appropriately. Commercial auto insurance covers vehicles owned by your business, while hired and non-owned auto insurance (HNOA) covers personal, rented, and leased vehicles used by your business.

Your personal auto insurance policy covers you while driving to and from work, but not while making deliveries, picking up supplies, and other work-specific uses. A business auto policy would cover you and your personal vehicle in case you’re at fault for an accident during a work-related errand.

Any vehicles you own solely for work purposes must be covered by a commercial auto policy, whether you own a landscaping pickup, a food truck, or a fleet of vehicles.

Your business could be in legal and financial jeopardy without commercial auto insurance coverage. In Illinois, all vehicles are required to carry auto liability insurance.

If one of your business vehicles is at fault in an accident, you could face an expensive lawsuit or settlement. You’d likely have to pay for damage to the other vehicle or property, medical costs, lost wages, pain and suffering, plus other related costs.

Additionally, you could face severe penalties for not carrying commercial auto insurance [PDF]. Driving without insurance carries a minimum fine of $500 in Illinois, with a potential increase in fines for a repeat offense or if involved in an accident, including the suspension of the offender's license and registration for up to four months.

If your insurance lapses, you may have to pay a $100 fee and show proof of new insurance before getting your license plates reinstated.

All vehicles in the state of Illinois are required to have a minimum requirements for auto liability insurance [PDF], whether they’re for personal or business use. Illinois's insurance requirements are:

• $25,000 per person bodily injury liability
• $50,000 per accident bodily injury liability
• $20,000 per accident property damage liability
• $25,000 per person uninsured motorist coverage
• $50,000 per accident uninsured motorist coverage

Your insurance agency might recommend higher liability coverage limits based on the types of vehicles you own and how they’re used.

Semi-trucks, tractor-trailers, and other vehicles with a U.S. Department of Transportation of Illinois serial number will have additional liability coverage requirements, depending on the type of vehicle and how it’s used.

You can see if your business needs these additional requirements by checking your USDOT number or docket number with the Federal Motor Carrier Safety Administration.

If you’re using your own vehicle for work-specific activities, your personal auto policy wouldn’t cover you in the case of an accident. That’s why many small business owners purchase hired and non-owned auto insurance (HNOA). This liability policy covers accidents in personal, leased, and rented vehicles used for work purposes.

If you or an employee gets into an accident while driving a personal car for a work errand, your HNOA coverage would help pay for any claims or lawsuits against your business. It’s worth noting that this would not cover damage to the vehicle used by your business.

While every Illinois business owner must meet the minimum requirements for business auto insurance, this mandate only applies to liability coverage. This can protect you if one of your vehicles causes an accident, but it does not insure you against a mishap caused by someone else.

It’s worth considering these other commercial auto coverage options to make sure you’re fully protected:

• Uninsured motorist coverage insures you against personal injuries and damage involving a company vehicle, in case whomever caused the accident is unable to cover the full cost of damages.
• Medical payments coverage pays for medical expenses if employees and passengers are injured in a company-owned vehicle, regardless of who is at fault.
• Collision coverage helps pay for the cost of repairing or replacing your company vehicle if it’s damaged in an accident, regardless of who was at fault.
• Comprehensive coverage covers the costs of non-collision damages such as vandalism, theft, flood, or fire.
• Towing and labor coverage covers the cost of roadside assistance for company-owned vehicles.
• Loading and unloading coverage insures against the damage of equipment and materials during transport, loading, or unloading.
• Bobtail coverage is recommended when you’re using tractors without a trailer. It usually covers the insured vehicle at all times, even during non-work-related uses.

Insureon makes it easy for business owners to compare quotes for Illinois commercial auto insurance. Complete one easy application to review quotes specific to your business and industry from leading U.S. insurers. Start an application for a commercial auto insurance quote today.