Illinois Auto Insurance Guide

Illinois Minimum Car Insurance Requirements

Get Illinois Auto Insurance State Guides, Laws and Regulations before You Buy Insurance

Auto insurance is designed to protect a vehicle owner financially when they cause damage to other people or property. Illinois drivers are required to carry insurance that will provide $25,000 of coverage for Bodily Injury (BI) per person, up to $50,000 total. The policy must also cover Property Damage (PD) coverage with a minimum of $20,000 per accident.

There are other parts of an auto insurance contract that may or may not apply to your situation. Car insurance companies in IL offer full coverage, comprehensive, collision, and the like, but they are not required by state law.

Key Takeaways

• Car insurance is mandatory in Illinois.
• The state minimums cover a driver’s liability (financial responsibility), for damages caused to people or property.
• No law in Illinois says you must have “full coverage,” but a lienholder / lender will require them.
• With so many insurance companies operating in Illinois, it pays to shop around for the best price on Illinois auto insurance.
• Ask your insurer about available discounts.

Introduction to Illinois Auto Insurance

When it comes to highway miles, Illinois is the third-largest state in the union. According to the Illinois Department of Transportation, there are 2,185 miles of Interstate highway, 15,969 miles of state highway, and almost 8,000 bridges in the state.

Illinois drivers suffer 874 accidents every day. Only about 1% of these accidents will lead to a fatality, but that is still eight people a day who will be killed by an auto accident in the state. Of those fatal accidents, more than one fourth of them are alcohol related. The other 99% of auto accidents will usually involve property damage, personal injury, or both.

According to the Insurance Information Institute (III), nearly 12% of Illinois drivers are currently driving without insurance. Not only is this unlawful, but it is also unethical, because it places other drivers and property owners at financial risk.

Coverage Descriptions

Auto insurance is compulsory in Illinois —it is required. Failure to carry auto insurance in IL can lead to license suspension and severe penalties and fines. If you cause an accident while driving uninsured in Illinois, you will be held financially responsible for damage you cause. Therefore, it makes sense to carry at least the state minimum. Many drivers feel more comfortable carrying more liability insurance than is required by the state, because medical bills and repair costs continue to rise.

Illinois is a “fault state.” Any time two vehicles are involved in an accident, insurance companies and law enforcement will determine who is “at fault” for the accident, and that party’s insurance will pay for damages. Sometimes, fault can be ascribed to two or more parties involved in an accident. Whichever driver has the highest percentage of fault will usually be financially responsible for the accident.

When several vehicles are involved in a crash in Illinois, the state minimum liability coverage may not be enough to cover personal injuries and property damages.

Minimum insurance requirements in IL

Illinois drivers MUST meet minimum insurance requirements. These include liability coverage, and uninsured motorist coverage.

Liability minimums:

• At least $25,000 of bodily injury and wrongful death liability coverage for one person injured or killed in an accident caused by the policyholder.
• At least $50,000 in total accident coverage for bodily injuries / deaths of multiple individuals in an accident caused by the policyholder
• A minimum of $20,000 of property damage coverage, which pays to repair damage to other vehicles, structures, street signs, fencing and so on, after an accident caused by the policyholder.

Uninsured motorist (UM) and Under-insured motorist (UIM) minimums:

• Uninsured Motorist Bodily Injury Coverage: this coverage pays for bodily injury caused by a hit-and-run driver or an at-fault driver who does not currently have insurance. The current minimum limit in IL is $25,000 for one person and a total of $50,000 for one accident.
• Underinsured Motorist Bodily Injury Insurance (UIM): this portion of your insurance will pay the difference for bodily injuries in your vehicle that are caused by another at-fault driver when those expenses are higher than their policy limits.

At first glance, these seem like reasonable amounts. However, you should consider the increasing costs of medical care, building supplies, real estate, and vehicles. Illinois state minimums for car insurance might not be high enough to protect your assets in the case of a lawsuit.

Other types of insurance coverages are available in Illinois, but they are not required by state laws. These include (but are not limited to):

• Collision coverage (pays to repair your vehicle after a collision or crash)
• Comprehensive coverage (pays for damage to your vehicle after other incidents, like a falling tree limb or hail damage)
• Accidental death benefits
• Bells and whistles like rental car coverage or roadside assistance.

We can help you determine how much auto insurance to buy.

New Driving Laws and Regulations in Illinois

Thanks to the COVID-19 pandemic, the Illinois legislature has not put many new laws into effect in recent years. However, there are a few you should know about.

Beginning in 2022, pregnant Illinois drivers can obtain a disability decal. This allows pregnant drivers access to parking spots for disabled individuals.

Also new for 2022, drivers’ education courses in Illinois will now include content that explains what happens during a traffic stop by law enforcement, and how to behave in those circumstances.

Since 2021, drivers who are involved in an accident while using a cell phone can incur a fine of at least $1,000.

Also, since 2021, speed zone cameras have been implemented in some sensitive areas. That means you can get a ticket for driving too fast in a school zone or work zone, even if you do not get pulled over by law enforcement.

Penalties for Failure to Carry Illinois Auto Insurance

In Illinois, driving without valid insurance may be considered a petty crime by those who do it. However, the penalties are serious if you get caught in the act.

For your first conviction of driving without insurance in IL, your driver’s license will be suspended for three months. You will also pay a fine ranging from $500 to $1,000, court costs, and a $100 reinstatement fee. You could spend about $2,000 on your first conviction. Be aware that your auto insurance costs might increase after this conviction, too.

Then, if you are caught driving without a license during that three-month suspension, you will get another six months of suspension, and more fines.

In Illinois, if you are convicted of driving without insurance a second time, the penalties are about the same. However, if you are convicted a third time, you will need to carry SR-22 insurance for the next three years. SR-22 is a special kind of insurance which is reported to the Secretary of State and can be costly. Should you allow that SR-22 insurance to lapse during the next three years, your license might be suspended or revoked.

How to Get the Cheapest Illinois Car Insurance Policy

It pays to shop around for IL auto insurance every few years, even if you are happy with your current insurer. Know that auto insurance companies DO creep up their prices, even for customers who do not have any claims their entire life.

Here is how to get the most affordable auto insurance in Illinois:

• Shop around every 6 months. Read More: Why You Should Shop for Car Insurance Every 6 Months. 
• Only purchase the coverages you need. For instance, if you own several vehicles, you may not need rental car coverage.
• Consider increasing your deductibles for comprehensive / collision. While you will pay a larger deductible after a covered accident, your monthly premium will decrease significantly.
• Ask about available discounts for good driving habits, anti-theft devices, multiple cars on one policy.
• If you do not drive much, consider a pay-per-mile auto insurance policy.
• Talk to agents about bundling your insurance. Some providers will offer a considerable discount if you have several lines of insurance with them, such as home, renters, life, recreational vehicle, and so on.

Read More: 8 Simple Ways to Save You 90% On Your Car Insurance

Illinois Car Insurance Premiums

As of 2021 — the most recent records available — the average driver in Illinois pays $37 per month for state-required minimum liability coverage, and $124 for full coverage. That is about $442 and $1,485 annually, respectively.

While those prices are slightly below the national average, your premium can vary a lot depending on many factors, including:

• Your age
• The value of your vehicle
• The type of vehicle you drive and how costly it is to repair
• Your driving record and claims history
• Your location
• Crime rates, like vehicle theft, in your area

According to Bankrate.com, these are the average costs for auto insurance in IL by company.

Also, per Bankrate.com, the table below explores the average price for full coverage from one city to the next.

For help finding Illinois car insurance quotes, contact us today or simply put your zip code below and hit “Get A Quote” !