Illinois Auto Insurance Rates: State Regulation And Consumer Impact

Illinois state law requires all vehicle owners to have a minimum amount of auto liability insurance. The minimum liability coverage in Illinois is $25,000 per person, with a total maximum of $50,000 per incident, and up to $20,000 for damage to another person's property.

Liability coverage provides for your legal defence if a lawsuit is brought against you as a result of a covered accident. As a resident of Illinois, there are two types of liability coverage your insurance policy must include: property damage and bodily injury.

Minimum liability coverage

Illinois law requires all vehicle owners to have a minimum amount of auto liability insurance. This includes liability coverage, which is often split into two separate coverages: Bodily Injury (BI) and Property Damage (PD).

Bodily Injury (BI)

In the event of a covered accident, Illinois law requires BI limits of at least $25,000 per person per accident and $50,000 total per accident. BI coverage pays for costs due to injury or death to a pedestrian or a person in another car. It may also cover the injury costs of your passengers as long as they aren't members of your household.

Property Damage (PD)

Illinois law requires PD liability limits of at least $20,000 per accident. PD coverage pays for damage to another person's car or property, such as fences, buildings, utility poles, signs, and trees.

The state of Illinois recommends that you consider buying higher limits, as the state minimums may not be enough to fully protect you from lawsuits.

Uninsured/underinsured motorist coverage

Illinois requires vehicle owners to have a minimum amount of auto liability insurance. This includes uninsured motorist bodily injury coverage (UM), which covers your bodily injury caused by a hit-and-run driver or an at-fault driver with no auto liability insurance. The minimum coverage for UM in Illinois is $25,000 per person and $50,000 per accident.

Underinsured motorist bodily injury insurance (UIM) is also required by law if you purchase higher limits of UM coverage. UIM pays the difference between your UIM limits and the liability limits of the at-fault driver, if lower than your UIM limits. This means that if the at-fault driver's insurance policy limit is lower than your UIM limit, your insurance company will cover the difference.

Uninsured motorist property damage coverage (UMPD) is an optional coverage that can be purchased if you do not have collision coverage. UMPD covers damage to your vehicle caused by an identified, at-fault, uninsured driver. The minimum UMPD coverage required by Illinois law is $15,000, with a $250 deductible.

While not mandatory, it is recommended that drivers consider purchasing higher limits of UM and UIM coverage than the state minimums to ensure they are fully protected in the event of an accident.

Collision coverage

Illinois law requires all vehicle owners to have minimum amounts of auto liability insurance. Collision coverage is an optional add-on to your insurance policy. It covers repairs to your car when it collides with another vehicle or object, or if it overturns. This includes collisions with objects such as a telephone pole, a guard rail, or a tree. It also covers damage caused by potholes.

The cost of collision coverage varies, but the average is about $290 per year. Collision coverage reimburses you for the costs of repairing your car, minus the deductible. You can lower your monthly premium by choosing a higher deductible, but this means you will have to pay more out of pocket when repairs are needed.

In Illinois, your lender may require you to have collision coverage if you have a loan on your vehicle.

Comprehensive coverage

Illinois law requires all vehicle owners to have minimum amounts of auto liability insurance. This includes bodily injury liability coverage, with a minimum of $25,000 per person and $50,000 total per accident, and property damage liability coverage, with a minimum of $20,000 per accident. However, these minimums may not be enough to fully protect you from lawsuits.

While comprehensive coverage is not required by law in Illinois or any other state, it may be required by your lender if you're financing or leasing your car. This protects their investment in case your car is damaged or destroyed and deemed a total loss. If you own your vehicle outright, you can choose whether or not to include comprehensive coverage, but it's a good idea to have it if you have a valuable car that would be expensive to repair or replace.

Proof of insurance

Illinois requires all vehicle owners to have a minimum amount of auto liability insurance. This includes Bodily Injury Liability Coverage and Property Damage Liability. The minimum insurance requirements in Illinois are $25,000 per person, with a total maximum of $50,000 per incident, and up to $20,000 for damage to another person's property.

Illinois law requires all vehicle owners to have a minimum amount of auto liability insurance. This is to protect you from financial losses, such as vehicle repairs, medical bills, and legal services that could result from an auto accident.

The Illinois Secretary of State has initiated an Electronic Liability Insurance Verification program for vehicles registered in the state. This program is designed to verify that all registered vehicles have the mandatory minimum liability insurance coverage. Each vehicle's liability policy is verified at least twice a year through a third-party vendor, electronically linked to all insurance companies writing vehicle liability insurance policies in Illinois.

If a vehicle is not verified as having the required insurance coverage, it will be checked again after 30 days. If the second verification attempt also fails, the registered owner of the vehicle will receive a registration suspension letter. At this point, the vehicle owner and their insurance company will be required to prove that the vehicle was covered by a liability insurance policy on the date of the initial verification attempt. This proof must be provided within 30 days of the date of the letter, and it must be provided through their insurance agent.

Failure to provide proof of insurance will result in the suspension of the vehicle's registration. To reinstate the registration, the vehicle owner must obtain liability insurance and pay a $100 fee.

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. If convicted, the driver's license plates will be suspended, and they may face fines: a minimum fine of $500 for driving uninsured, and a minimum fine of $1000 for driving with suspended license plates due to a previous insurance violation.

To avoid penalties, it is important for vehicle owners in Illinois to maintain the required minimum liability insurance coverage and be prepared to provide proof of insurance when requested by law enforcement or the Secretary of State.

Frequently asked questions