PLIllinoiseasy
On an Illinois personal auto policy, towing/labor and transportation expense (rental reimbursement) coverages are best described as:
AMandatory coverages required by 625 ILCS 5/7-203
BAutomatically included in UM coverage
Optional coverages the insured may purchase by endorsement
DRequired when the vehicle is financed
Why this is the answer
Illinois law mandates only liability coverage at 25/50/20 limits plus uninsured motorist; physical damage is required only by lenders. Towing/labor and transportation expense (rental reimbursement) are entirely optional coverages added by endorsement. They reimburse the insured for a tow when the auto is disabled and pay a daily rental allowance while the covered auto is being repaired after a covered physical damage loss.
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