Government Fleet Top News

State of Illinois Can't Cover Insurance

March 3, 2005

SPRINGFIELD, IL – The state of Illinois has run out of money to pay for motor vehicle insurance claims, according to The oversight has left more than 60 motorists or their insurance companies on the hook for a total of $230,000 in repair costs springing from car accidents and other mishaps with state vehicles.The state has been working with individual insurance companies to make sure motorists can repair the damages. However, some lawmakers state that filing an insurance claim often results in higher premiums.Officials from the governor's budget office and the agency that oversees the state's self-insurance fund confirmed there is no money left to pay out claims until the end of the fiscal year, which is June 30. One theory for the insufficient funds, which comes from the governor's Office of Management and Budget, is that some claims were higher this year than in the past because the cost of automobile repairs may be rising.Since the fund ran out, 62 claims have been submitted. Arrangements have been made with 54 of the victims' insurance companies to make sure claims and deductibles are paid, according to Willy Medina, spokesman for the Illinois Department of Central Management Services.

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