Illinois Car Insurance Requirements Every Driver Should Know

Illinois drivers are legally required to carry minimum auto liability insurance to operate a vehicle. The state follows an at-fault system, meaning the party responsible for causing an accident is liable for damages. Here’s what you need to know about car insurance in Illinois for 2025.

What Illinois Law Says About Auto Insurance

The minimum liability insurance required by Illinois law includes:

• Bodily Injury: $25,000 per person / $50,000 per accident
• Property Damage: $20,000 per accident

This is often referred to as 25/50/20 coverage.

Optional Coverages Worth Considering

While Illinois law only requires liability insurance, most drivers add extra protections. Here’s what each option covers and why it may matter in Illinois:

• Collision Coverage: Pays to repair or replace your vehicle if it’s damaged in a crash, regardless of fault. Helpful in Chicago and other high-traffic areas with greater accident risk.
• Comprehensive Coverage: Covers non-collision damage such as theft, vandalism, fire, hail, or hitting a deer—common in rural parts of Illinois.
• Uninsured/Underinsured Motorist (UM/UIM): Required for bodily injury, but many drivers add higher limits. This protects you if the at-fault driver has no insurance or too little coverage.
• Medical Payments (MedPay): Helps cover hospital bills or ambulance costs for you and passengers, regardless of fault. Especially valuable if you don’t have strong health insurance.
• Rental Car Reimbursement: Pays for a rental while your vehicle is being repaired after a covered accident.
• Roadside Assistance: Covers towing, lockouts, jump-starts, or fuel delivery. Useful during harsh Illinois winters.

If your car is leased or financed, your lender will likely require full coverage (liability + collision + comprehensive).

Speaking of Uninsured Motorist Coverage, drivers in Chicago might notice their premiums creeping up—not just due to traffic, but also because of the city’s higher-than-average uninsured driver rate.

Penalties for Driving Without Insurance in Illinois

Illinois takes uninsured driving seriously. Penalties include:

• Fines between $500 and $1,000 for a first offense
• Suspension of your driver’s license and vehicle registration for up to 3 months
• A $100 reinstatement fee once coverage is obtained
• For repeat offenders: longer suspensions, higher fines, and mandatory SR-22 insurance for up to 3 years

Driving without insurance more than once will also increase your insurance rates for years due to the SR-22 filing requirement.

Illinois Proof of Insurance Laws

All drivers must carry proof of insurance and present it when:

• Stopped by law enforcement
• Involved in a traffic accident
• Renewing vehicle registration

Illinois accepts both paper and electronic proof of insurance. Most drivers now use digital ID cards provided by their insurer’s mobile app.

Tip: If you fail to show proof during a traffic stop, you may face fines and possible suspension until you provide evidence of active coverage.

Does Illinois Use Real-Time Insurance Verification?

Illinois uses random insurance verification checks through its Electronic Liability Insurance Verification Program (ELIVP). While it’s not fully real-time, the system selects vehicles and sends letters to owners requiring them to confirm coverage with their insurer electronically. Failure to respond can lead to registration suspension.

Real-World Example: Illinois Verification Letter

Imagine you receive a letter from the Illinois Secretary of State saying your vehicle was selected for electronic insurance verification. You have 30 days to respond. Your insurer will confirm coverage electronically—no paperwork required. If coverage isn’t verified, your registration could be suspended, even if you’re insured. This makes responding quickly very important.

Official Illinois Insurance Resources

• Illinois Secretary of State – Vehicle Services

Frequently Asked Questions About Illinois Car Insurance

Is car insurance mandatory in Illinois?

Yes. Every vehicle driven on public roads in Illinois must have liability insurance at or above the minimum limits.

What happens if I’m randomly selected for insurance verification?

You must respond by having your insurer confirm coverage electronically. Failure to do so may result in registration suspension.

Can I show proof of insurance on my phone?

Yes. Illinois accepts digital insurance cards or app-based proof of coverage during stops or registration processes.

Do I need SR-22 insurance after a lapse?

If your license was suspended due to lack of insurance, Illinois may require you to carry SR-22 coverage for a period of time.

Does Illinois require uninsured motorist coverage?

Yes, for bodily injury. Illinois drivers must carry at least $25,000/$50,000 in uninsured motorist bodily injury coverage.

How Illinois Compares with Neighboring States