License-less Coverage Advertisements to be Regulated

Sometimes insurance isn’t the most clear-cut thing in the world. Insurance companies have many policies that they adopt that can be somewhat confusing. The Illinois Senate passed a bill in early June to try and remedy one of these practices.

The practice in question is when insurance carriers advertise to consumers that they can get insurance coverage even if they don’t have a license. This sounds like a good deal, right? Wrong. Most of these insurance companies later deny consumers their coverage on that very basis: not having a driver’s license.

It’s a dirty trick to be sure, and incredibly deceptive. Driving without a license is illegal. If you do so anyhow and think you are covered through your insurance policy only to be denied coverage due to a lack of having a license, you are in for a rude awakening. Not only is it unfair to policyholders, but they are gaining customers that would otherwise not qualify.

Legislation in Motion

“Representatives in the state House passed the legislation by a 66-44 vote on March 30. Senators passed the bill by a 45-9 vote on May 25. The proposal is currently in the state House, where representatives will consider amendments made by senators.”

The bill in its previous form would stop insurance companies from refusing coverage to drivers solely based on that fact (Not having a valid driver’s license). However, this is only the case insofar as the driver is listed as an unlicensed driver while he is applying for coverage.

Senate amendments removed this caveat, though left the literature on the advertisement of coverage without a valid driver’s license the same.

Keeping up with your state’s laws and regulations is important. If you’d like up to date info on auto insurance legislation in Illinois, please visit our website here.

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