Illinois Auto Insurance Laws, Minimums, Requirements

What mandatory auto insurance laws exist in the state of Illinois?

• If you register a vehicle in the state of Illinois, have Illinois license plates, and you are driving the vehicle on Illinois roads, you carry the minimum amounts of liability auto insurance. There are no exceptions to this rule. In Illinois, “vehicle” means cars, vans, motorcycles, RVs, buses, and trucks.
• In the state of Illinois the minimum amounts of liability insurance are $20,000 injury or death of one person in an accident, $40,000 injury or death of more than one person in an accident, and $15,000 damage to someone else’s property.
• In the state of Illinois, proof of insurance is not required when you register your vehicle. Your signature automatically confirms that you will be insuring your vehicle. Illinois has random insurance screening, so if you fail to provide proof of insurance, your license plates will be suspended.
• If you are caught driving without insurance in Illinois, you will receive a citation. If you cannot prove that you had the minimum levels of auto liability insurance at the time you were stopped, you will have to pay a minimum fine of $500 and a mandatory $100 to reinstate your registration. 

What is the Minimum Liability Coverage (Bodily Injury amounts per person, per accident, and property damage amounts):

If you buy automobile insurance in the state of Illinois, your policy must include minimum liability coverage of:

$20,000 injury or death of one person in an accident,
$40,000 injury or death of more than one person in an accident,
and
$15,000 damage to someone else’s property

What are the Rental Car Insurance Requirements?

In the state of Illinois, if you are driving a vehicle, any vehicle, on Illinois roadways, you must carry the minimum levels of auto liability insurance. Rental cars are no exception. If your current auto insurance policy and/or your credit card do not cover rental cars, you must purchase insurance from the rental car company. You must carry proof of coverage at all times while operating the vehicle. This means that your credit card paperwork or auto insurance policy should outline your insurance coverage for car rentals. It is important to keep in mind that Illinois law does not permit the Collision Damage Waiver (CDW) option.

What are the rules pertaining to Uninsured/Underinsured Motorist Coverage?

The state of Illinois does not require Uninsured/Underinsured Motorist Coverage. However, many Illinois auto insurance companies will recommend purchasing uninsured/underinsured (UM/UIM) coverage in as much UM/UIM as you can afford.

What are the rules pertaining to the exclusion from coverage of a driver living in household?

In the state of Illinois, auto insurance companies can write policies that exclude household members. These exclusions are listed in the exclusions section, which also includes a list of all possible circumstances that would free the insurance company from the responsibility of paying a claim. It is important to examine your auto insurance carefully before you sign on the dotted line.

What are the rules regarding whether a driver has prior insurance? That is, how does state law handle it if a driver has no prior insurance or has let their previous insurance lapse?

If your insurance lapses in the state of Illinois, at the time it lapses, you will be considered uninsured. If you are caught driving without insurance in Illinois, you will receive a citation. If you cannot prove that you had the minimum levels of auto liability insurance at the time you were caught, you will have to pay a minimum fine of $500 and a mandatory $100 to reinstate your registration. 

What are the rules and guidelines auto insurance companies must follow regarding the use of Personal Credit History in selecting applicants and setting rates?

While many auto insurance companies in the state of Illinois will not use your Personal Credit History to extend an offer for insurance, Illinois law does allow the use of Personal Credit History as an assessment of risk tool. Illinois insurance companies place a significant amount of weight on driving records, type of vehicle being covered, sex and age of drivers, place of residence, and number of drivers on the policy.

Is the state a No Fault or Tort state? What does either mean to the policy owner?

The state of Illinois follows a Tort liability system, so there are no restrictions on lawsuits. What this also means is, if you are involved in an accident, someone must be found to be the cause or fault of the accident. The person deemed at fault is responsible for all damages. Damages are usually handled through the at-fault person's insurance company. Because Illinois is a Tort state, most insurance companies recommend that driver’s consider carrying higher coverages than the state minimums. 

What is the average auto insurance premium in this state? As of what year?

As of 2006, Illinois resident’s average insurance premium was approximately $740, the 27th most expensive in the nation. This was down 0.4% from the previous year. The national average was $817.

Sources
Insurance Information Institute

Illinois Division of Insurance