What are state minimums for car insurance in Illinois?

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Things to remember...
  • There are approximately 800 car accidents every day in Illinois
  • Driving without insurance could cost you up to $4,600 in fines in Illinois
  • It costs $100 to reinstate your license in Illinois


The Office of the Illinois Secretary of State requires all drivers carry a car insurance policy. The purpose of this policy is not to aggravate drivers who want to save money by canceling their car insurance.

It’s to help people who are involved in accidents on the Illinois highways and roadways. It’s expensive to pay for repairs, medical bills, and to take time off work to recover from accident injuries.

Paying for the funeral of a loved one is expensive if they pass in a car accident. With approximately 800 accidents per day in Illinois, everyone needs insurance.

You can’t afford to drive without a good insurance policy. You need this so you can cover your financial bases in all aspects of life. 

Spending tens of thousands of dollars following an accident isn’t feasible for the average household in Illinois.

It’s time to focus on finding proper insurance coverage for your vehicles and learning how you can do just that on a budget by comparing rates with various insurance companies. Use our free quote tool above to start comparing rates today! 

Insurance Requirements for All Drivers in Illinois

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All drivers in Illinois must carry at least the minimum policy allowed by the state lawmakers. This policy is a liability insurance policy. It must contain at least $25,000 worth of bodily injury insurance per person and $50,000 per accident as well as $20,000 worth of property damage coverage.

Every insurance company in the state is aware of this requirement, and they are required by law to provide quotes that include at least this amount of insurance.

The law in Illinois also mandates you must always have your insurance card in your vehicle. If you do not have one in your car and you are pulled over, you could end up paying fines and even facing more serious penalties.

If you cannot find your card for your current policy, now is the time to call the insurance agent you work with and ask for a replacement.

Is the minimum car insurance all I need?

There’s a little confusion about the minimum coverage in some households. The state does not require anyone to carry more than this liability insurance, but there are some financial institutions that believe otherwise.

Only people who own their vehicles outright have the option to carry only this type of insurance.

If you’ve made the final payment on your vehicle and have the title in your name, you may choose how much coverage you purchase.

Anyone who is financing their car through a lender must carry the kind of insurance policy the lender requires until your vehicle is paid off.

This means you do not get to buy only the cheapest policy available unless it’s full coverage. While the car still belongs to the lender, it’s their choice the kind of policy you carry.

If you lease your car, you’ll never have the chance to reduce your coverage to meet the minimum requirements.

If your lender finds out you let your policy lapse or that you canceled your policy, they notify you through the mail. They give you a chance to call your insurance company and buy full coverage, and they warn you failing to do this will result in a policy purchased by them for you.

You are responsible for paying for the policy your lender buys, and it’s almost guaranteed your lender is not shopping around for the best car insurance rates to help you out.

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What happens if I decide I’m not buying insurance at all in Illinois?

Nothing good ever happens to people who choose to ignore the law and drive without insurance. The state issues immediate fines, license suspension, and other costs to anyone who is caught without insurance in an accident or when they are pulled over for any reason.

The hope is that you will learn your lesson the first time you’re pulled over without insurance and never do it again.

First-time offenders are immediately out as much as $2,100 if you are caught driving without insurance. This includes a fine anywhere between $501 and $1,000 just for failing to purchase insurance.

It also includes another $1,000 fine for driving with suspended plates. It’s helpful to understand driving without insurance in Illinois automatically suspends your plates retroactively the moment you’re caught your license is also suspended for as many as three months, and it cost $100 to reinstate your license.

If you decide to go without insurance more than once, you face fines up to $$4,600. The automatic fine for driving without an insurance policy is $1,000.

Then there is another $1,000 fine for driving with suspended plates, and there is a $2,500 fine if you’ve been in an accident.

This time your license is suspended for as many as four months, and it costs $100 to reinstate. You’re also required to submit form SR-22 for three years to prove you have insurance.

If you are a first-time offender who is able to purchase an insurance policy prior to your court date, you can ask the judge to drop the fines. If you can do this, you only pay the $100 fee to reinstate your license with the state following your automatic suspension. You must have proof of the insurance policy you purchased.

How Your Rates are Determined in Illinois

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Drivers in Illinois want to know what they can do to lower their car insurance rates, and knowing how they are determined is the first step.

Rates are determined using several factors, and they all determine your level of risk. Insurance companies offer lower premiums to safe drivers.

You must have a good credit score, you must have a clean driving record, and you must not live in a neighborhood with a high crime rate.

It’s also helpful if you are a low-mileage driver who spends less time on the road. It’s important to check your credit report for mistakes before you begin shopping around for a new policy. Even a small mistake can dramatically lower your score, which can cause companies to view you as a riskier driver.

The other thing you can do is ask for discounts. Put all your cars on one policy to save money, pay your premium up front for a discount, and ask for a discount if you’re retired.

All these tips help you find more affordable insurance. Don’t miss out on our free quote tool below! Just enter your zip code and start comparing rates now!

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