Illinois State Minimum Insurance Coverage

Auto Insurance Requirements in Illinois

Like most states in the U.S., the state of Illinois requires that all drivers secure car insurance for their registered vehicles. The state has minimum required insurance requirements that a driver must meet to comply with the state's laws.

What is an Auto Insurance Liability Limit?

Liability car insurance helps to protect you financially if you are found to be at fault for an accident. When you purchase car insurance, you select a bodily injury liability limit that is broken down by the amount of coverage your insurance company will pay out to one person you may injure in an accident that you cause and carries a maximum limit that the carrier will pay out for injuries for the overall claim. In addition, you will select a property damage liability coverage limit, which is the maximum your insurance company will pay to repair or replace the other driver's vehicle or other property you may damage in a crash.

In the State of Illinois, you are required to purchase uninsured/underinsured motorist (UM) coverage in addition to liability coverage. UM coverage will pay for your and your passengers' injuries up to your policy's limit if you are hit by a driver that does not have insurance or does not have enough insurance to pay for your and your passengers' medical expenses after an accident.

Illinois Car Insurance Requirements

In Illinois, the required amount of car insurance coverage is at least $25,000 in bodily injury liability coverage per person, at least $50,000 in bodily injury liability coverage per accident, and property damage liability coverage at a minimum of $20,000 per accident. This is called a "split liability limit" and may be represented as 25/50/20 on your auto insurance policy. Your uninsured/underinsured motorist coverage limit must be at least $25,000 per person and $50,000 per accident, but you can purchase a higher coverage limit for UM coverage if you want to.

Though carrying the minimum coverages in Illinois will satisfy the state's requirements for you to drive legally, the limits are quite low and may not protect you in the event of a serious accident in which you are at fault. For example, if you get into a car accident and cause $30,000 in injuries to the other driver, the bodily injury liability portion of your policy would only pay the injured party $25,000, leaving the other $5,000 as your responsibility to pay out of pocket. If in that accident, you caused $25,000 worth of damage to the other driver's vehicle, your car insurance policy would only pay them $15,000 to fix their car leaving another $5,000 as your responsibility to pay out of pocket to the other driver. This scenario would cost you a total of $10,000 out of pocket and could be avoided if you purchased more coverage. Because Illinois's liability requirements are so low, oftentimes a driver's insurance policy is not sufficient to respond to the injuries and damages they cause in an accident. You should consider purchasing as much bodily injury liability coverage and property damage coverage as you can afford to best protect yourself in an accident.

Understanding Your Coverage Options

The state of Illinois requires bodily injury liability, property damage liability, and uninsured/underinsured motorist coverage on all registered vehicles, but there are other coverages you may need or want to consider purchasing on your car insurance policy as well. These include:

• Comprehensive Coverage: This coverage will respond to damages to your vehicle caused by animals, fire, theft, vandalism, or weather after you have satisfied the deductible you selected on your policy for this coverage.

• Collision Coverage: This coverage will respond to damages to your vehicle caused by another vehicle or object after you have satisfied the deductible you selected on your policy for this coverage.

• Medical Payments Coverage (MedPay): This coverage will pay for the medical expenses that you and your passengers incur in a car accident, whether you caused the accident or not, up to the limit you select on your policy. This coverage is similar to Personal injury protection (PIP) coverage but only covers medical expenses.

• Personal Injury Protection Coverage (PIP): Like MedPay, PIP coverage will pay for your and your passengers' injuries in the event of a car accident up to the limit you select on your policy. The advantage to having PIP coverage instead of MedPay coverage is that PIP also covers things such as loss of work, funeral expenses and death benefits for people injured in your car, and coverage for things that you cannot do while recovering from your injuries such as childcare, housekeeping, and transportation.

• GAP Coverage: GAP coverage is part of the physical damage section of a car insurance policy. If you are financing or leasing your car, you may owe your lender more than the car is worth if it is totaled in an accident. In this case, GAP coverage will pay your lender for the difference between your car's actual cash value at the time of an accident and the loan amount that you have left on the car.

• Rental Car Reimbursement Coverage: This optional coverage will pay for you to rent a replacement vehicle for a set amount per day for a set number of days while your car is being repaired from a covered claim on your car insurance policy.

• Roadside Assistance Coverage: This is optional coverage you can buy on your car insurance policy in case your vehicle is disabled or needs to be towed. Roadside assistance coverage pays for things like towing, jump-starting a dead battery, repair of a flat tire, locksmith services, delivery or fuel if you run out of gas, and more, depending on your insurance carrier.

• Towing Coverage: This optional coverage will pay for your disabled vehicle to be towed up to a limit that you have set on your policy.

Factors Affecting Your Premium

The cost of car insurance in Illinois can vary significantly based on several factors, including driver’s age and driving history, vehicle type, and location. Younger, less experienced drivers and those with traffic violations typically face higher premiums. Your credit score can also impact your premium, with better credit scores often resulting in lower rates. You can purchase a car insurance policy in Illinois through an independent insurance agent, directly through an insurance carrier, or you can get quotes from multiple insurance companies by using an online quoting website such as A-MAX Insurance to find a policy that offers the coverages you want at a price you can afford. Regardless of which insurance company you purchase your policy through, be sure to ask about any discounts you may qualify that may help to make the policy more affordable for you.

Penalties for Driving Without Insurance in Illinois

Illinois’ mandatory insurance law requires drivers to always carry their insurance card and present it to law enforcement upon request. The state of Illinois will randomly select drivers to ensure they have proper car insurance. Punishment for not carrying auto insurance in Illinois can be severe, including fines, suspension of your vehicle registration or driver's license, impounding of your vehicle, higher insurance premiums, and possibly the requirement to produce an SR-22, which is a document issued by your insurance company to the Illinois Department of Motor Vehicles to prove your financial responsibility. Aside from these penalties, driving without insurance can cause financial devastation if you get into a car accident and do not have car insurance to protect yourself.

Illinois Car Insurance FAQs

Q: Can I drive without car insurance in Illinois?

A: It is illegal to drive without car insurance in Illinois. You must purchase an insurance policy with at least a 25/50/20 liability insurance limit to legally drive in the state.

Q: How do I get car insurance in Illinois?

A: You can obtain an auto insurance policy through an independent insurance agent, directly from an insurance company, or you can gather quotes for multiple insurance companies through an online rating website such as A-MAX Insurance.