Illinois Car Insurance Regulations & Required Coverage

Illinois car insurance regulations mandate that all drivers must carry car insurance on all registered vehicles. Illinois auto insurance law follows a tort system, which means that after an accident, someone will be held responsible, or at-fault, for causing the accident. The at-fault party is responsible for paying for all damages related to the accident. Find an affordable Illinois car insurance policy here so you aren’t paying out of pocket after an accident. Enter your ZIP code below to get started!

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Chris Tepedino is a feature writer that has written extensively about home, life, and car insurance for numerous websites. He has a college degree in communication from the University of Tennessee and has experience reporting, researching investigative pieces, and crafting detailed, data-driven features. His works have been featured on CB Blog Nation, Flow Words, Healing Law, WIBW Kansas, and C...

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Written by Chris Tepedino
Insurance Feature Writer Chris Tepedino

Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance for 10 years. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate...

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Reviewed by Laura Walker
Former Licensed Agent Laura Walker

UPDATED: Jul 16, 2021

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Illinois laws mandate that all drivers carry car insurance. The state’s minimum requirements, specific regulations and penalties vary from other states. To be sure that you are in compliance with the state’s insurance laws, you should regularly review them for changes.

Similar to other states, Illinois insurance law follows a tort system. What this means is that after an accident, someone will be held responsible, or at fault, for causing the accident. This person, along with their insurance agency, is then required to provide financial restitution for all expenses related to the accident.

Required Coverage

All personal vehicles in Illinois require the following liability coverage requirements:

  • Bodily Injury
  • Property Damage

Additionally, Illinois requires:

  • Uninsured / Underinsured Bodily Injury
Minimum Illinois Car Insurance Requirements
Bodily Injury Liability $20,000 / $40,000 Limit
Property Damage Liability $15,000 Limit
Uninsured Motorist Bodily Injury $20,000 / $40,000 Limit

Additional insurance coverage can include:

  • Comprehensive and Collision Coverage
  • Accidental Death Benefit
  • Custom / Non-factory Equipment
  • Gap Coverage
  • Medical Payments
  • Physical Damage / Repair / Replace Coverage
  • Rental Reimbursement
  • Towing
  • Uninsured Motorist Property Damage

Collision and comprehensive insurance are highly recommended. Collision helps pay for repairs after your car is involved in an accident and comprehensive covers incidents such as a tree damaging your vehicle or your car being broken into. We have compiled a list of the most stolen vehicles in Illinois. If your car is on the list, it is
even more recommended that you opt for comprehensive insurance.

Accidental death benefit insurance will pay in the event that the insured dies after being in a car accident.

Custom or non-factory equipment insurance pays for damages to non-standard equipment such as radios, speakers, etc.

Gap insurance is often required when leasing a vehicle. It pays for the difference between the actual value of a vehicle and what is owed on a lease or loan if the vehicle is totaled.

Medical payments insurance covers expenses related to injuries to or the death of you or your passengers. It also covers you and your family if they are struck by another vehicle when walking, biking or in another vehicle.

Rental reimbursement insurance helps pay the costs associated with either renting a temporary vehicle or paying for alternate means of transportation when your insured vehicle is being repaired after an accident.

Uninsured motorist property damage insurance will pay for expenses for vehicle repairs if you are in an accident caused by someone who is uninsured. If you don’t have optional collision coverage,
you can get a maximum of $15,000 worth of uninsured motorist property damage coverage.

Proof of Insurance and Financial Responsibility

Establishing proof of insurance and financial responsibility

  • Get a standard liability car insurance policy

Required Documentation

In order to provide proof of insurance, you can provide one of the following:

  • Insurance ID Card

You must maintain proof of insurance and financial responsibility and present it:

  • When asked by a police officer
  • If randomly selected by the Secretary of State
  • When registering your vehicle
  • After an accident
  • Anytime you are operating a vehicle

Failure to Maintain Financial Responsibility Penalties

If you are unable to show proof of insurance, you can face the following penalties:

  • Your license plates will be suspended until you can show you have at least the required coverage and pay a $100 reinstatement fee. If you have previously had your plates suspended, your suspension will last a minimum of 4 months.
  • Minimum fine of $500 if caught driving without insurance

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