Illinois Vehicle Insurance: What's The Law?

In Illinois, every registered vehicle must be insured. The state has an Electronic Liability Insurance Verification program that checks the insurance status of all registered vehicles at least twice a year. Illinois law requires all vehicle owners to have a minimum amount of auto liability insurance, and drivers must carry proof of insurance. The minimum liability coverage in Illinois is $25,000 bodily injury per person, $50,000 bodily injury per accident, and $20,000 property damage per accident.

Penalties for driving without insurance

In Illinois, driving without insurance is a petty offence, which means there is no jail time. However, there are still serious consequences for those who choose to drive without insurance.

First Offence

If you are convicted of driving without insurance for the first time, you will be subject to a minimum fine of $500, a maximum fine of $1,000, court costs, and a $100 reinstatement fee. Your driver's license and registration will be suspended for up to three months.

Second Offence

The penalties for a second offence are the same as the first, except there is a mandatory four-month suspension.

Repeat Offences

For a third or subsequent offence, the minimum fine increases to $1,000, and there is a mandatory four-month suspension of your license plates. You will also need to pay a $100 reinstatement fee and provide proof of insurance. Repeat offenders will also be required to file proof of financial responsibility, called an SR-22 certificate, for three years.

Driving Without Insurance in an Accident

If you are involved in an accident while driving without insurance, and you have been convicted twice or more for driving uninsured, you will be fined an additional $2,500 on top of the other penalties.

Reducing Fines

If you are a first-time offender and can produce proof of appropriate insurance coverage by your court appearance date, you may only have to pay a $100 fine and avoid a driver's license suspension.

Insurance verification process

In Illinois, vehicle insurance is mandatory for all motor vehicles that must display license plates and are being driven. This includes cars, vans, motorcycles, recreational vehicles, trucks, and buses. Trailers are exempt from this rule.

To enforce this, the Illinois Secretary of State has implemented an Electronic Liability Insurance Verification program for vehicles registered in the state. This program, known as the State of IL Insurance Verification System (ILIVS), is a no-match insurance verification program that checks the insurance status of all drivers in Illinois at least twice a year through a third-party vendor.

The insurance verification process works as follows:

• The third-party vendor electronically verifies the liability policy of each vehicle with insurance companies that write vehicle liability insurance policies in Illinois.
• If the initial verification attempt does not confirm that a vehicle is covered by the statutorily required minimum liability insurance, the vehicle will be checked again after 30 days.
• If the second verification attempt also does not confirm a liability insurance policy for the vehicle, the registered owner of the vehicle will receive a registration suspension letter.
• The registered owner and their insurance company will then have 30 days to prove that the vehicle was covered by a liability insurance policy on the date of the initial verification attempt through their insurance agent.
• If they cannot provide proof of insurance, the vehicle's registration will be suspended until the owner obtains liability insurance and pays a $100 reinstatement fee.
• During the suspension period, no one is allowed to operate the vehicle, but the registered owner may drive other insured vehicles.
• To reinstate the registration, the owner must contact an insurance agent, purchase liability insurance, and log onto the ILIVS.com website using the reference number from the registration suspension letter or the Vehicle Identification Number (VIN) lookup function.

Additionally, if a driver is stopped for a traffic violation or involved in an accident and cannot provide evidence of insurance, a law enforcement officer may issue a traffic citation with fines ranging from $500 for driving uninsured to $1000 for driving with suspended license plates due to a previous insurance violation.

Minimum insurance requirements

Illinois law requires all motor vehicle owners to have minimum amounts of auto liability insurance. This includes cars, vans, motorcycles, recreational vehicles, trucks, and buses. Trailers are not required to have liability insurance.

The minimum amounts of car insurance required in Illinois are:

• $25,000 liability coverage for bodily injury or death per person
• $50,000 liability coverage for bodily injury or death per accident, for multiple people
• $20,000 liability coverage for property damage

Liability insurance policies in Illinois automatically include uninsured motorist coverage at the legal minimum requirements for bodily injury or death. Uninsured motorist insurance covers your accident-related losses if you're in a crash with an at-fault driver who is uninsured.

In addition to the above, Illinois law (215 ILCS 5/143a-2) requires underinsured motorist bodily injury insurance (UIM) if you purchase higher limits of uninsured motorist bodily injury coverage. UIM pays the difference between your UIM limits and the liability limits of the at-fault driver, if lower than your UIM limits.

Physical damage insurance is not required by Illinois law, but your lender may require it to protect their interest in a financed vehicle. Physical damage insurance includes collision coverage and comprehensive coverage. Collision coverage pays for damage caused by an accident with another car or fixed object (such as a tree). Comprehensive coverage pays for damage caused by most other causes, such as theft, fire, hail, etc.

Insurance for uninsured motorists

In Illinois, it is mandatory to carry liability insurance to register or operate a vehicle. The state has an Electronic Liability Insurance Verification program that checks the insurance status of all drivers at least twice a year. If a vehicle is not insured, it will be rechecked after 30 days, and if the verification fails again, the owner will have 30 days to provide proof of coverage or face a registration suspension.

Now, what happens if you are in an accident with an uninsured motorist? This is where uninsured motorist coverage comes in. Uninsured motorist coverage is a type of insurance that protects you if you are in an accident with a driver who does not have insurance. It covers injuries to you and your passengers, and sometimes, damage to your vehicle. While not all states require this coverage, Illinois is one of the states that does.

There are two types of uninsured motorist coverage: uninsured motorist bodily injury (UMBI) and uninsured motorist property damage (UMPD). UMBI covers medical bills for you and your passengers, while UMPD covers damage to your vehicle. In some states, only UMBI is available. It is important to note that uninsured motorist coverage does not cover collisions with underinsured drivers, i.e., drivers who have insurance but not enough to cover the full cost of a claim. For that, you would need underinsured motorist coverage (UIM).

Even if you are a safe and law-abiding driver, accidents can still happen, and not everyone follows the insurance laws. Without uninsured motorist coverage, you could be left paying for medical bills or vehicle repairs out of your own pocket. Therefore, it is highly recommended to have this coverage, even in states where it is not mandatory.

In Illinois, liability insurance policies automatically include uninsured motorist coverage at the legal minimum requirements for bodily injury or death. This means that if you are in an accident with an uninsured driver, your insurance will cover your accident-related losses. This is especially important considering that, according to the Insurance Research Council, about one in every eight U.S. drivers does not have insurance.

In conclusion, while every registered vehicle in Illinois must be insured, it is also important to consider insurance for uninsured motorists. By understanding the different types of coverage available and their benefits, you can ensure that you are protected in the event of an accident.

Additional insurance options

Illinois requires all vehicle owners to have a minimum amount of auto liability insurance. However, there are several additional insurance options that drivers in Illinois can choose to include in their auto policy for more financial protection. These options include:

• Collision coverage: This pays for damage caused by a collision with another car or a fixed object such as a tree.
• Comprehensive coverage: This covers damage caused by reasons other than collisions, such as theft, fire, or hail.
• Rental reimbursement: This provides a specific amount per day to rent a vehicle while yours is being repaired due to a covered loss.
• Emergency roadside assistance: This covers all or part of the cost of towing your disabled vehicle to a repair shop.
• Accidental Death Benefit: This pays a death benefit if the insured dies due to an auto accident.
• Custom/Non-Factory Equipment: This covers customized features in conversion vans and any additional equipment added after the vehicle left the factory, such as tape decks, CD players, or cell phones.
• Gap Coverage for Leased or Financed Vehicles: This covers the difference between the actual cash value of your vehicle and what you still owe on your loan or lease.
• Medical Payments: This covers medical and funeral expenses for you or your passengers if injured or killed in an accident in your vehicle. It also covers you and your family if struck by a vehicle while walking or riding in another vehicle.
• Physical Damage/Repair/Replace Coverage: This pays for a new vehicle if the cost to repair your vehicle exceeds the value of a new car. This endorsement is typically available only during the first three model years.
• Uninsured Motorist Property Damage (UMPD): This covers damage to your vehicle caused by an identified, at-fault, uninsured driver. If you don't have collision coverage, this option provides a maximum of $15,000, subject to a $250 deductible.

Frequently asked questions