Illinois minimum car insurance: what the law requires

Illinois requires every car on the road to carry liability insurance of at least $25,000 for injury to one person, $50,000 for injury to two or more people and $20,000 for property damage in one crash, plus uninsured motorist coverage. That’s the floor the law sets, not a measure of what a serious crash actually costs.

“The Illinois minimum” sounds like a product. It’s really a short list of legal requirements. Here’s what’s on it, how the state checks, and what the minimum doesn’t do.

What the law requires

Under Illinois law (625 ILCS 5/7-601 and 7-203), a car designed for public roads has to be covered by a liability policy with at least:

• $25,000 for bodily injury or death of one person in a crash,
• $50,000 for bodily injury or death of two or more people in a crash, and
• $20,000 for damage to other people’s property in a crash.

You’ll often see that written as 25/50/20. The policy has to come from an insurer authorized to do business in Illinois.

The requirement covers cars, vans, motorcycles, recreational vehicles, trucks and buses that need plates and are being driven. Trailers don’t need their own liability insurance, according to the Illinois Secretary of State.

Uninsured motorist coverage comes with it

Illinois also requires uninsured motorist bodily injury coverage on every liability policy, at least at those same injury minimums (215 ILCS 5/143a). It pays for your own injuries when the driver who hit you has no insurance, or drives off.

Unless you ask in writing for lower limits, your uninsured motorist limits match your liability limits, and they can’t go below the state minimums. Whenever your uninsured motorist limits are above those minimums, the policy must also include underinsured motorist coverage at the same amount. It helps when the other driver has some insurance but not enough (215 ILCS 5/143a-2). I wrote more about both here.

Uninsured motorist property damage is different: your insurer has to offer it, but it’s optional.

What the minimum doesn’t cover

Liability pays for the damage and injuries you cause to other people. It never pays to fix or replace your own car. Collision and comprehensive aren’t required by Illinois law, though a lender or leasing company will usually require them until the car is paid off. (Here’s what people usually mean by “full coverage”.)

And if a crash costs more than your limits, the difference can come back to you. The Illinois Department of Insurance says it plainly: state minimums may not be enough to fully protect you from a lawsuit. Choosing your limits is a real conversation about what you own and what you’d want protected, not a box to tick.

How Illinois checks

Illinois verifies insurance electronically. The Secretary of State checks each registered vehicle’s liability policy at least twice a year through a system connected to insurers. If a check fails, the vehicle is checked again after 30 days. If that fails too, the owner gets a registration suspension letter and has 30 days to prove the car was insured.

You also have to keep evidence of insurance in the car (625 ILCS 5/7-602). An insurance card works, and so does an image on your phone or your current declarations page. If an officer asks and you can’t show proof, the law treats you as driving uninsured, though you can still clear the ticket by showing the court you were insured at the time (625 ILCS 5/3-707).

What happens if you drive uninsured

• Your plates can be suspended. To lift a registration suspension, you get insurance and pay a $100 reinstatement fee, according to the Secretary of State. Repeat offenders serve a four-month plate suspension first.
• A conviction means a fine of more than $500, and up to $1,000 (625 ILCS 5/3-707). Driving a car whose plates are suspended for lack of insurance carries a fine of $1,000 to $2,000 (625 ILCS 5/3-708).
• Your driver’s license is suspended for three months after a conviction, with a reinstatement fee after that.
• A third conviction means filing proof of financial responsibility with the Secretary of State and keeping it for at least three years.

Good to know

1. Visiting or just moved? Illinois law requires any car driven here to be insured, including one registered in another state, and the driver must carry proof.
2. Keep the card current. Illinois insurance cards show an effective and an expiration date, so swap in the new one at renewal.
3. Selling or storing a car? Tell your agent. The state’s verification can flag a registered car that suddenly has no policy.
4. Turned down elsewhere? The Illinois Automobile Insurance Plan exists for drivers who can’t find coverage in the regular market. Ask your agent about it.

Want me to check yours?

Send me your declarations page and I’ll walk you through exactly what you have, what Illinois requires, and where you might be thinner than you think. No pressure, and no jargon.

Talk to Elona