Auto Insurance: Illinois' Legal Requirements Explained

In Illinois, auto insurance is required by law. The state has a fault-based insurance system, meaning the driver at fault in an accident is responsible for covering the damages. Illinois law requires all drivers to have proof of insurance, which is verified through an Electronic Insurance Verification process. The minimum amounts of car insurance required in Illinois are $25,000 liability coverage for bodily injury or death of one person, $50,000 liability coverage for bodily injury or death of more than one person, and $20,000 liability coverage for damage to another person's property.

Minimum liability coverage

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. Liability coverage is typically divided into bodily injury coverage and property damage coverage.

The minimum liability coverage in Illinois is 25/50/20:

• $25,000 bodily injury per person
• $50,000 bodily injury per accident
• $20,000 property damage per accident

Bodily injury coverage helps to cover any medical bills and sometimes funeral expenses associated with a car accident in which you are at fault. Property damage coverage, on the other hand, goes towards covering the cost of damage inflicted on another's property, including fences, buildings, utility poles, signs, and trees.

It is important to note that liability insurance only covers injuries or damages that you cause to others and their property. It does not pay for injuries or damages to your own property. If you want coverage for your own vehicle repairs, you need to purchase collision and comprehensive car insurance separately.

Additionally, Illinois mandates that all drivers carry uninsured motorist coverage to protect themselves in the event of an accident involving an uninsured driver. The minimum coverage required is for bodily injury, but you can also purchase uninsured motorist property damage coverage to protect your personal property.

Uninsured/underinsured motorist coverage

Illinois mandates that all drivers carry uninsured/underinsured motorist coverage to protect against bodily injury if they are harmed in an accident where an uninsured or underinsured driver is at fault. This type of coverage is required by law and helps to ensure that individuals are financially protected in the event of an accident with an uninsured or underinsured motorist.

Uninsured motorist coverage provides protection for injuries to you and your passengers if you are in an accident caused by a driver who does not have auto insurance. In Illinois, the minimum limits for uninsured motorist bodily injury coverage are set at $25,000 per person and $50,000 per accident. This means that your insurance will cover up to $25,000 in bodily injury costs for any single person and a total of $50,000 for all individuals injured in the same accident. Uninsured motorist coverage can provide valuable financial protection in the event of an accident, helping to cover medical bills and, in some cases, funeral expenses.

Underinsured motorist coverage, on the other hand, comes into play when the at-fault driver has auto insurance but their policy limits are insufficient to cover the expenses incurred in the accident. In this case, your insurance company will cover the expenses that exceed the limits of the other driver's policy. For example, if the at-fault driver's insurance policy has a lower limit than your underinsured motorist coverage limit, your insurance company will pay the difference. This ensures that you are not left with out-of-pocket expenses due to the other driver's inadequate coverage.

While Illinois law only mandates uninsured/underinsured motorist coverage for bodily injury, individuals can choose to add uninsured motorist property damage coverage to their policy as an endorsement. This optional coverage will protect your personal property in the event of an accident with an uninsured driver. It is worth noting that underinsured motorist property damage coverage is not typically available, and individuals may need to rely on their collision or comprehensive coverage to cover property damage in such cases.

It is important to review your insurance policy and understand the specific coverages, limits, and exclusions to ensure that you have adequate protection in the event of an accident with an uninsured or underinsured motorist. Consulting with an experienced insurance professional or attorney can help you make informed decisions about your coverage options and ensure that you comply with the legal requirements in Illinois.

Collision coverage

Illinois law requires all vehicle owners to have minimum amounts of auto liability insurance. However, collision coverage is not mandated by the state. Collision coverage is an optional coverage that pays to repair or replace your vehicle if it's involved in an accident with another vehicle or a fixed object, such as a tree or fence. While not legally required, it is often required by lenders if you're leasing or financing your vehicle.

In Illinois, if you're at fault in an auto accident, liability insurance will cover the expenses for property damage or bodily injury of the other driver. However, liability insurance does not cover injuries or damages to your own property. This is where collision coverage comes in. Collision coverage helps you repair or replace your vehicle after a collision, providing financial protection in the event of an accident.

When deciding whether to opt for collision coverage, consider the value of your vehicle. If your vehicle is new or valuable, collision coverage can help with potentially expensive repairs or replacement. Additionally, if you're leasing or financing your vehicle, lenders typically require collision coverage to protect their investment.

While collision coverage offers financial protection, it's important to note that it doesn't cover all types of accidents. For example, collisions with animals or damage caused by events outside your control, such as a fallen tree, are typically excluded. Comprehensive coverage is usually needed for these scenarios.

Comprehensive coverage

Illinois law requires all vehicle owners to have minimum amounts of auto liability insurance. However, comprehensive coverage is not mandated by law, so you can choose whether to include it if you own your vehicle.

It's important to note that comprehensive coverage does not include damages caused to your vehicle in a collision; this is covered by collision coverage. Additionally, comprehensive coverage does not include any injuries you or your passengers sustain during an incident, only damages to the vehicle itself.

The amount of coverage provided by comprehensive insurance depends on the coverage limit and deductible. The deductible is the amount you must pay out of pocket before your insurance kicks in. For example, if you have a $500 deductible and $2,000 worth of damage, your insurance will cover $1,500. While a lower deductible reduces your financial burden, it usually results in higher insurance premiums. Therefore, it's essential to carefully consider your options and choose a deductible that strikes a balance between affordability and adequate coverage.

Proof of insurance

Illinois law requires all drivers to have proof of insurance showing that they carry the required amounts of auto insurance coverage. If you are stopped for a traffic violation or involved in an accident, a law enforcement officer may issue a traffic citation if you are unable to provide evidence of insurance.

Since 2020, the Illinois Secretary of State has been running an Electronic Liability Insurance Verification program for vehicles registered in Illinois. Each vehicle's liability policy is verified at least twice each year through a third-party vendor. If the initial verification attempt does not verify that a vehicle is covered, that vehicle will be checked a second time after 30 days. If the second verification attempt fails, the registered owner will have 30 days to submit proof of coverage or their vehicle's registration will be suspended. Owners must then obtain liability insurance and pay a $100 reinstatement fee to have the registration suspension lifted.

If you are caught driving without proof of insurance for the first time but can prove that you have insurance in court, you will be responsible for a $100 fine. If you are unable to prove that you have insurance, you will face a fine of between $500 and $1,000 and a license plate suspension of up to four months.

In most cases, Illinois drivers show proof of their auto insurance by keeping their insurance card in their vehicle or wallet. However, many car insurers have now implemented a mobile phone application that allows policyholders to show proof on their phone.

Frequently asked questions