Is car insurance required in Illinois?

Illinois’ car insurance laws mandate that all drivers must have auto insurance to drive within the state. In addition, a policy with a minimum liability limit of 25/50/20 and uninsured and underinsured motorist coverage is required, which can help protect third parties who receive injuries or damages.

Do you need car insurance to register a car in Illinois?

Proof of insurance is not required to register a vehicle in Illinois. All that is needed is the application for vehicle transactions, the out-of-state title, a photo ID with signature and an odometer reading and car description.

What is “basic” car insurance in Illinois?

Drivers in Illinois need a policy that has 25/50/20 in liability limits along with uninsured and underinsured motorist coverage. This means having $25,000 in bodily injury per person up to $50,000 per accident and $20,000 in property damage coverage. Additionally, a $25,000 limit per person and $50,000 limit per accident in uninsured motorist bodily injury coverage is needed.

Does insurance follow the car or driver in Illinois?

Like most states, auto insurance in Illinois follows the car. Therefore, in case of an accident, anyone driving a car with the owner’s consent and under their insurance will be covered.

Can you get car insurance without a license in Illinois?

Those who have model cars or want to have their families insured but don’t have a license may get car insurance in Illinois. However, note that insurers factor in your driver’s license and history — without a license, you’ll be seen as high risk and may have higher premiums.

Is Illinois a no-fault state and what does this mean?

Illinois is an at-fault state. This means that courts will hold a single party responsible if an accident occurs.

Is PIP coverage required in Illinois?

Personal injury protection or PIP coverage is not required in Illinois. This coverage pays for the drivers and their passengers’ medical injuries in case of an accident, regardless of who is at fault.

Does Illinois require uninsured motorist insurance?

Illinois’ car insurance requirements include uninsured motorist insurance for drivers. This covers the cost of any injuries to a policyholder caused by an uninsured driver.

Does Illinois allow for diminished value compensation after an accident?

Yes, drivers in Illinois can recover diminished value compensation from the at-fault party’s insurance company. The diminished value, or diminution value, is the difference between the value of a vehicle before and after a collision.

How do car insurance requirements change after a DUI in Illinois?

If you’ve received a DUI in Illinois, you will have to file for an SR-22 to show proof of insurance and regain your vehicle registration and license. Note that filing for an SR-22 will also increase your premium prices, as insurers view you as a high-risk driver.

What is a CARCO Inspection and is it required?

CARCO Inspections are not required in Illinois. However, these are pre-insurance measures that insurers and policyholders can take to protect themselves. The process involves taking photos and documenting the condition of the car pre-insurance to prevent fraud and help reduce the cost of any needed coverage.

Illinois Minimum Car Insurance Requirements, Penalties and Other Auto Insurance Laws

Illinois’ minimum car insurance requirements include having 25/50/20 in liability limits and uninsured and underinsured motorists coverage. This means that policies should have at least $25,000 in bodily injury coverage per person with a limit of $50,000 per accident, $20,000 in property damage coverage and $25,000 in uninsured/underinsured motorist bodily injury limits per person with a limit of $50,000 per accident. The minimum coverage only protects third parties injured in an accident and drivers involved in an accident with an uninsured driver. Still, you can purchase additional coverage for extra protection. Driving without car insurance in Illinois is illegal and drivers can get fined and penalized.

TABLE OF CONTENTS

Minimum Car Insurance Requirements in Illinois
How Much Does Minimum Car Insurance Cost?
Penalties for Driving Without Insurance in Illinois
FAQs

What Is the Minimum Car Insurance Requirement in Illinois?

How much car insurance you need in Illinois can vary, as it depends on your unique situation. However, Illinois’ car insurance laws state all drivers must have an auto insurance policy that follows the minimum requirements of 25/50/20 with uninsured and underinsured motorist coverage. This means that drivers should have at least:

$25,000 in bodily injury liability per person
$50,000 in bodily injury liability per accident
$20,000 in property damage liability
$25,000 in uninsured/underinsured motorist bodily injury liability per person
$50,000 in uninsured/underinsured motorist bodily injury liability per accident

While these are the minimums, drivers can fully consider purchasing higher limits to protect themselves from lawsuits or exorbitant medical bills.

What Does This Minimum Coverage Mean?

Illinois requires that all drivers have minimum liability coverage of 25/50/20 and uninsured and underinsured motorist coverage. This includes $50,000 in bodily injury coverage per accident with a $25,000 limit per person, which helps drivers pay for any third-party injuries sustained in an accident. In addition, a property damage limit of $20,000 is needed to help cover the costs of damages to a third party’s vehicle or personal property.

Uninsured motorist (UM) coverage can help drivers cover any bodily injury costs if an uninsured motorist is at fault. This includes medical expenses, loss of wages due to injuries, funeral expenses and more. Drivers need $50,000 in uninsured motorist coverage per accident with a $25,000 limit per person. Underinsured motorist (UIM) coverage covers the difference between the at-fault driver’s liability limits and your UIM coverage limits.

How Much Does the Minimum Car Insurance Cost in Illinois?

Your Illinois auto insurance premiums are determined using various factors, such as your age, postal code, credit score and other factors. Which insurer you choose can also affect your premiums, as some insurers may hold some aspects, such as your credit score, in higher regard compared to others. The cheapest insurer in Illinois is GEICO, whose auto insurance costs an average of $366 per year.

These prices are only estimates based on rates for an average Illinois driver and should not be used to compare insurance prices.

MoneyGeek gathered quotes for a policy following the state’s minimum of 25/50/20 with uninsured and uninsured motorists coverage using a sample profile. The profile used was a 40-year-old Illinois resident with a 2010 Toyota Camry and a good driving record and history.

If you're instead looking for a policy that balances quality with affordability, MoneyGeek also ranked the top car insurance companies in Illinois.

What Is the Minimum Car Insurance Requirement in Illinois While Leasing a Car?

In Illinois, financial leasing companies may have different insurance requirements compared to that of the state. This is usually higher because companies will want to protect their financial interests. The majority of leasing companies require that you have full coverage insurance with a minimum liability limit of 100/300/50. As this can still vary from company to company, contact your leasing company to determine your minimum coverage.

While Illinois’ minimum car insurance requirements can help ensure that drivers are protected, it might not be enough if medical bills and other costs skyrocket. 11.8% of drivers in Illinois are uninsured. Although uninsured motorist coverage is required, increasing your limits might save you from paying for costly expenses on top of your insurance.

Overall, how much car insurance you need will depend on how much you want to be protected. MoneyGeek recommends getting full coverage insurance with at least 50/100/50 in liability limits, but it’s best to get a policy that best suits your needs.

Penalties for Driving Without Car Insurance in Illinois

In Illinois, car insurance is a requirement for all drivers. Driving without insurance is illegal and can lead to consequences like penalties or fines. Always keep your proof of car insurance in their vehicle. This can be your insurance ID or a printed copy of the policy.

Illinois’ car insurance laws state drivers can get the following penalties for driving without auto insurance:

First Offense

Drivers license and/or privileges will be suspended
License plate will be suspended
Fined around $500

Second and Subsequent Offenses

Driving licenses and/or privileges will be suspended for four months
License plate will be suspended for four months
Will be required to file for an SR-22
Fined around $1,000

Frequently Asked Questions About Car Insurance in Illinois

To help drivers understand the laws on car insurance in Illinois, MoneyGeek has answered a few frequently asked questions below.

Learn More About Car Insurance

About Mark Fitzpatrick

Mark Fitzpatrick is a senior content director at MoneyGeek with over five years of experience analyzing the insurance market, conducting original research and creating content that can be personalized for every buyer. He has been quoted on insurance topics in several publications, including CNBC, NBC News and Mashable.

Mark earned a master’s degree in Economics and International Relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his economics and insurance knowledge to bring transparency around financial topics and help others feel confident in their money moves.

sources

Illinois Department of Insurance. "Consumer Auto Insurance." Accessed July 12, 2021.
Insurance Information Institute. "2020 Insurance Fact Book." Accessed July 11, 2021.
Insurance Information Institute. "Facts + Statistics: Uninsured motorists." Accessed July 12, 2021.
Kelly Blue Book. "Penalties for Driving Without Car Insurance by State." Accessed July 11, 2021.
Office of the Illinois Secretary of State. "Mandatory Insurance." Accessed July 12, 2021.
Value Penguin. "Diminished Value Claims Explained." Accessed July 13, 2021.