Illinois car insurance requirements and what they cost
Illinois requires every driver to carry liability insurance with minimum limits of 15/30/6 — that means $15,000 per person for bodily injury, $30,000 per accident for bodily injury, and $6,000 for property damage. These are the lowest legal limits in the state. You must show proof of insurance when you register your vehicle with the Secretary of State and carry it in your car at all times.
The cost of a basic liability policy in Illinois varies widely depending on your age, driving record, location, and the insurer. A 35-year-old driver with a clean record in a suburban area typically pays between $800 and $1,200 per year for minimum coverage, but rates can be significantly higher in Chicago and other urban areas, or if you have accidents or violations on your record. Younger drivers and those with poor driving histories often pay $1,500 to $3,000 or more annually for the same coverage.
Illinois does not require collision or comprehensive coverage, but if you financed or leased your vehicle, your lender will require both. Collision covers damage to your car from accidents; comprehensive covers theft, weather, and other non-collision events. Adding these coverages typically increases your annual premium by $400 to $800, depending on your deductible choice.
Key Takeaways
- Illinois law requires a minimum of 15/30/6 liability coverage, which you must carry at all times and show when registering your vehicle.
- Liability-only policies for a clean-record driver typically cost $800 to $1,200 per year, but rates are higher in Chicago and for drivers under 25 or with violations.
- Collision and comprehensive coverage are optional unless you have a car loan or lease, in which case your lender will require them.
- Illinois allows you to satisfy the insurance requirement through a surety bond or self-insurance if you own multiple vehicles, but standard insurance is the most common route.
How to find and compare Illinois car insurance rates
The fastest way to compare rates is to contact insurers directly or use online quote tools. Major insurers operating in Illinois include State Farm, Allstate, GEICO, Progressive, and Farmers, but smaller regional companies and direct writers often offer competitive rates. Most insurers let you get a quote online in 10 to 15 minutes by entering your driver's license number, vehicle information, and desired coverage limits.
When comparing quotes, make sure you are looking at the same coverage limits and deductibles across all of them. A $500 deductible will produce a lower premium than a $250 deductible, but it means you pay more out of pocket if you have a claim. Illinois insurers are required to offer discounts for things like bundling home and auto policies, maintaining a clean driving record, completing a defensive driving course, or paying your premium in full upfront rather than monthly. Ask each insurer what discounts you may be may be able to access for, as these can reduce your rate by 10 to 30 percent.
You can also contact the Illinois Department of Insurance directly if you have questions about a specific insurer's rates or practices, or if you believe you have been treated unfairly. The department maintains a complaint database and can provide information about which insurers operate in your area.
What happens if you drive without insurance in Illinois
Driving without proof of insurance in Illinois is a traffic violation. A first offense typically results in a fine of $500 to $1,000, plus court costs. If you are stopped again within three years, the fine increases to $1,000 to $2,000. A third violation within three years can result in a fine up to $2,500 and suspension of your driver's license for up to three months.
Beyond the legal penalties, an accident without insurance creates serious financial exposure. If you cause an accident and injure someone or damage their property, you are personally liable for all costs — medical bills, vehicle repairs, lost wages, and more. A single serious accident can result in a judgment against you for tens of thousands of dollars. The other driver's insurance company can pursue you for recovery, and a judgment can affect your credit, wages, and assets for years.
If you cannot afford standard insurance, Illinois offers the Illinois FAIR Plan (Fair Access to Insurance Requirements), which is a shared-risk pool that provides basic liability coverage to drivers who have been denied coverage by standard insurers. Rates are higher than standard insurance, but it is a legal way to meet the state requirement if you have been unable to find coverage elsewhere.
Uninsured and underinsured motorist coverage in Illinois
Illinois requires insurers to offer uninsured motorist (UM) coverage and underinsured motorist (UIM) coverage, though you can decline them in writing. UM coverage pays for your medical bills and lost wages if you are hit by a driver with no insurance; UIM coverage applies when the at-fault driver's insurance limits are too low to cover your damages. Many drivers decline these coverages to save money, but they protect you against a real risk — roughly 12 to 15 percent of Illinois drivers are uninsured at any given time.
The minimum UM/UIM limits match your liability limits — so if you carry 15/30/6 liability, your UM/UIM would also be 15/30/6 unless you choose higher limits. Adding UM/UIM coverage typically costs $50 to $150 per year, depending on your limits and insurer. If you have collision coverage, UM/UIM is especially worth considering, because it protects you in situations where collision would not explore — for example, if an uninsured driver hits your parked car and drives away.
Medical payments coverage and personal injury protection
Illinois allows insurers to offer medical payments (MedPay) coverage, which pays for medical treatment for you and your passengers regardless of who caused the accident. This is different from liability coverage, which only pays for injuries you cause to others. MedPay typically covers up to $1,000 to $5,000 in medical expenses and is relatively inexpensive — usually $10 to $30 per year for basic limits.
MedPay is useful if you have a high health insurance deductible or no health insurance at all, because it can cover the gap. It also covers passengers in your car, so if you frequently drive friends or family, it provides an extra layer of protection. Unlike liability coverage, MedPay does not require you to prove fault, so you can use it even in accidents where you are partially or fully at fault.
Illinois does not require personal injury protection (PIP) coverage, which is mandatory in some states. PIP is similar to MedPay but typically covers more expenses, including lost wages and rehabilitation costs. Some insurers in Illinois offer PIP as an optional add-on, but it is not common. If you are interested in broader coverage for medical expenses and lost income, ask your insurer whether they offer PIP or whether MedPay with higher limits would meet your needs.
Special situations: teen drivers, commercial use, and rideshare
Teen drivers in Illinois must hold a valid instruction permit for at least 12 months and a valid graduated driver's license before they can drive unsupervised. If you add a teen to your policy, expect your premium to increase by 50 to 100 percent or more, because teen drivers have significantly higher accident rates. Some insurers offer discounts for teens who maintain a B average in school or complete a defensive driving course, which can offset some of the increase.
If you use your vehicle for commercial purposes — delivery, rideshare, or business travel beyond occasional commuting — your personal auto policy likely does not cover you. Rideshare drivers for Uber or Lyft must carry rideshare insurance, which covers you while you are logged into the app and have a passenger. Your personal policy will not cover you during this time, and neither will the rideshare company's insurance if you do not have the right coverage. Rideshare insurance typically costs $10 to $30 per week, depending on your base policy and the company.
If you use your vehicle primarily for business — as a contractor, delivery driver, or sales representative — you need a commercial auto policy instead of personal auto insurance. These policies are more expensive but provide coverage for business use and higher liability limits. Contact your insurer to discuss your specific use case, as the line between personal and commercial use can be unclear.
How to file a claim and what to expect
If you are in an accident, call your insurer as soon as possible — most insurers have 24/7 claims lines. You will need to provide details about the accident, the other driver's information, and a description of the damage. Take photos of the damage to your vehicle and the accident scene, and get the other driver's name, phone number, address, driver's license number, and insurance information. If there are witnesses, get their contact information as well.
Your insurer will assign a claims adjuster who will contact you to schedule an inspection of your vehicle. The adjuster will estimate the cost of repairs and determine whether the claim is covered under your policy. If you have collision coverage, your insurer will pay for repairs minus your deductible. If the other driver is at fault and has insurance, your insurer may pursue a subrogation claim against their insurance to recover the deductible and other costs.
Illinois law gives insurers 30 days to acknowledge receipt of a claim and 45 days to approve or deny it. If your claim is denied, you have the right to appeal and request a written explanation of the denial. If you disagree with the adjuster's damage estimate, you can request an independent appraisal, which is binding on both you and the insurer.
Frequently Asked Questions
Can I get car insurance in Illinois with a suspended license?
Yes, you can purchase insurance with a suspended license, but you cannot legally drive. Some insurers may be reluctant to insure you, and rates may be higher. If your license is suspended due to unpaid tickets or child support, you will need to resolve those issues before you can drive legally. Contact the Illinois Secretary of State for information about your specific suspension.
What is the Illinois FAIR Plan and how do I get coverage through it?
The Illinois FAIR Plan is a shared-risk pool that provides liability coverage to drivers who have been denied by standard insurers, usually due to a poor driving record or claims history. You can contact the Illinois Department of Insurance or ask an insurance agent for information about how to access it. Rates are typically 20 to 40 percent higher than standard insurance.
Do I need to carry my insurance card in my car?
Yes, Illinois law requires you to carry proof of insurance in your vehicle at all times. This can be a physical card, a digital copy on your phone, or a printout from your insurer's website. If you are stopped by police, you must show proof of insurance along with your driver's license and vehicle registration.
What should I do if another driver hits me and drives away?
Call the police and file a hit-and-run report, then contact your insurer. If you have uninsured motorist coverage, your insurer will cover the damage to your vehicle and your medical expenses, minus your deductible. You will need to provide the police report number to your insurer. If you do not have uninsured motorist coverage, you may be responsible for the full cost of repairs.
Can I cancel my insurance policy anytime?
Yes, you can cancel your policy at any time, but you must maintain continuous coverage to avoid legal penalties. If you are switching to a new insurer, start the new policy before canceling the old one to may support there is no gap. Some insurers charge a cancellation fee if you cancel before your policy term ends, so check your policy documents for details.