Illinois Car Insurance Laws
Carrying Illinois state minimum liability limits of 20/40/15 -- $20,000 per person and $40,000 per accident for bodily injury and $15,000 for property damage -- doesn't give you much protection if you own a home or have savings. Once your limits are reached, you can be sued in court for remaining accident costs.
Most experts say 100/300/50 offers an adequate shield for a typical family.
Uninsured motorist: Illinois also requires that you buy uninsured motorist bodily injury coverage. Underinsured motorist (UIM) coverage can be rejected in most cases. Talk to your insurer first.
If you don't have collision coverage on your vehicle, then Illinois car insurance providers are required to offer you uninsured motorist property damage (UMPD) with a maximum limit of $15,000 (subject to a $250 deductible), but you can reject it.
If you want your vehicle covered for any type of collision, just not those with an uninsured motorist, collision coverage is a much better choice than UMPD. And to have your vehicle covered for fire, theft, vandalism or damages from natural disasters, then you will also want to carry comprehensive coverage.
Comparative negligence: Illinois has adopted a modified comparative negligence stance for the recovery of auto accident damages. This means that you may recover damages only if you are less than 50 percent at fault for the damages or injuries. And the amount you recover may be reduced in proportion to the degree that you are at fault. So, if you're found to be 20 percent at fault, you can claim against the other party, but the third-party insurer may only pay 80 percent of your damages.
Reasons for cancellation: During the first 60 days of a new policy your Illinois car insurance company may cancel for almost any reason. After 60 days, there are still many reasons that the state allows your insurer to cancel or non-renew your policy. Read the full list on the Illinois Department of Insurance's website.
Points system: Illinois has a unique way in which it applies points to your driving record. While the state does have a point schedule, the Driver Services Department goes by the number of moving violations you have been convicted of. Once you reach a certain point, the Department can assign you points to determine how long your license suspension will be. See "How long do points stay on your license in Illinois?" for more information.
Uninsured motorist penalties for Illinois: You may have to pay $500 to $1,000 in fines and your license and registration may be suspended.
Driving without a license: In Illinois driving without a license is a "petty offense"; you will have your license suspended and must pay a fine of up to $500. If your license expired over a year ago, the penalty rises to a Class B Misdemeanor -- up to a $1500 fine and up to six months of jail time.
DUI stays on your record: DUI penalties in Illinois are harsh. A DUI stays on your record for your lifetime, with first-time offenders have their license suspended for a minimum of two years.
Out-of-state/out-of-country drivers: Illinois law allows drivers to use an out-of-state license for 90 days before requiring an Illinois license.
No age restriction to own a car: Minors are legally allowed to buy and title a car in Illinois. Dealers and insurance companies may require a parent to buy or insure a car, however.
Electronic proof of insurance: Illinois allows drivers to show proof of insurance during a traffic stop on a smartphone. It is one of 31 states that does so.
Largest car insurance companies in Illinois by market share
||Company / Group
||Direct Premiums Written ($)
||Market Share (%)
||State Farm Group
||Allstate Insurance Group
||COUNTRY Financial PC Group
||Berkshire Hathaway Insurance
||Farmers Insurance Group
||Progressive Insurance Group
||Amer Family Insurance Group
||Liberty Mutual Insurance Cos
||MetLife Personal Lines Group
|Source: A.M. Best market share rankings are based on direct premiums written in 2013.