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.

Quick Checklist for Illinois Drivers:

  • Carry at least 25/50/20 liability coverage
  • Keep electronic or paper proof of insurance in your vehicle
  • Renew insurance before it lapses to avoid SR-22 requirements
  • Understand penalties for driving without insurance

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

Although only liability coverage is required, many Illinois drivers choose to add optional coverage for better protection:

  • Collision and Comprehensive (for physical damage to your own vehicle)
  • Uninsured/Underinsured Motorist (UM/UIM)
  • Medical Payments (MedPay)
  • Rental Car Reimbursement
  • Roadside Assistance

Note: If your car is leased or financed, full coverage may be required by your lender.

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 imposes the following penalties for operating a vehicle without insurance:

  • Fines ranging from $500 to $1,000
  • Driver’s license and registration suspension
  • Mandatory SR-22 insurance for repeat or severe violations

Illinois Proof of Insurance Laws

Drivers must carry proof of insurance and present it when requested by law enforcement or during vehicle registration. Illinois accepts electronic proof of insurance shown on a smartphone or device.

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.

Official Illinois Insurance Resources

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.

Want to see how Illinois compares with nearby states? Check out:
Iowa,
Wisconsin,
Indiana, and
Missouri.

Disclaimer: This content is for informational purposes and may not reflect the most recent legal changes. Always verify requirements with the Illinois Secretary of State or the Illinois Department of Insurance.