Understanding Mandatory Car Insurance Requirements in Illinois
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Like most other U.S. states, Illinois requires drivers to carry auto insurance. Since the requirements vary from state to state, you may not know what kind of car insurance policy you need. So, what type of mandatory insurance is required in Illinois?
This guide will break down all rules and regulations surrounding mandatory insurance in Illinois so you can make more informed decisions while shopping for your auto insurance coverage.
Overview of Mandatory Insurance in Illinois
If your vehicle is registered in Illinois, you’re subject to the Illinois mandatory insurance law. That means you have to carry auto liability insurance coverage that meets the minimum coverage limits established by the state.
Illinois Liability Insurance Requirements
Liability coverage is the only type of car insurance that state law requires you to carry in Illinois. Your insurance policy must meet these minimum policy limits to fulfill the requirements.
- $25,000 for the bodily injury or death of one person
- $50,000 for the bodily injury or death of multiple people
- $20,000 for property damage
Bodily Injury Coverage
If you are the at-fault driver in a car accident and someone else gets hurt, the bodily injury liability coverage will pay their medical expense up to these limits. Bodily injury insurance may also cover loss of income if the other party can’t work due to their injuries.
Property Damage Coverage
The property damage portion of the liability insurance covers the cost of repairing or replacing someone else’s property that you damaged in an accident. For example, if you back your car into a building someone else owns, your property damage coverage would pay for the repairs to the building.
Uninsured Motorist Coverage
Illinois law also requires liability insurance policies to automatically include uninsured motorist coverage. The uninsured motorist coverage pays for your property repairs, medical bills, and related expenses if you’re in a car accident caused by someone who does not have insurance coverage.
Carry your insurance card as proof that you have enough liability insurance on your vehicle. In a traffic stop, a law enforcement officer might ask for your card as proof of insurance. Your insurance company should send the card when you sign up for or renew your policy.
Review the insurance requirements of your state:
Recent Updates to Illinois Insurance Laws
Starting in 2020, Illinois began using an electronic verification program to make sure all the vehicles registered in Illinois had sufficient insurance coverage. The state of Illinois will verify each registered vehicle’s insurance coverage at least twice annually.
If your vehicle fails the first verification attempt, the state will check again after 30 days. If the second verification also shows the vehicle doesn’t have enough liability insurance coverage, the state will suspend the vehicle registration. You’ll need to prove that your vehicle had a compliant insurance policy during the first check or incur fees and other penalties.
Consequences of Non-Compliance
If you don’t have auto insurance in Illinois that meets the minimum liability coverage requirements, you can face legal consequences. The state will suspend your vehicle registration on the first offense of failing the electronic verification program. To remove this suspension, you will have to provide proof of sufficient liability coverage and pay a $100 fee.
The state will suspend the vehicle registration for four months on the second offense. You cannot drive the vehicle during that period and will still need to pay a $100 fee to reinstate the registration.
On the third and subsequent offenses, you will either have your license suspended or have to file the SR22 certificate — proof of financial responsibility — for three years.
Operating an uninsured vehicle also comes with a minimum $500 fine. If you drive your vehicle while the registration is suspended for not having sufficient insurance coverage, you will be charged a minimum $1,000 fine.
Tips for Ensuring Compliance
Stay up to date with changes to Illinois’ car insurance requirements. States sometimes update their minimum insurance requirements, and you don’t want to accidentally fall out of compliance when things change.
You may find talking to an insurance agent in your area helpful. Local insurance agents should be familiar with Illinois’ insurance requirements and can help you find a plan that meets all your needs.
Reducing Premiums: Safe Driving Discounts
If you’re trying to find cheap car insurance in Illinois, one tip is to keep your driving record as clean as possible. Insurance companies may offer safe driving discounts to drivers who don’t get into at-fault accidents or get traffic tickets. If you're eligible for the safe driving discounts, you may unlock lower insurance premiums.
Protect Yourself and Your Vehicle — Get Insured Today!
If you’re an Illinois driver who doesn’t have auto insurance that meets the state requirements, now is the time to purchase coverage. Carrying auto insurance ensures you comply with the law and helps protect you and your vehicle.
Finding the right plan can be tricky, though, especially since prices and coverage can vary significantly from place to place. The solution is a custom comparison of your car insurance options.
Get a free custom comparison from EverQuote in minutes. It’s never been easier to discover all your options and find the perfect car insurance plan for your needs.