Car Insurance Lapses in Illinois

Having auto insurance is a crucial part of driving a vehicle in Illinois. But what happens if your car insurance lapses? Many drivers may wonder if there’s an Illinois auto insurance grace period, and what to do after missing a payment. At Illinois Vehicle Insurance Agency, LLC (Illinois Vehicle), we know that life can get busy and, sometimes, important tasks like paying your car insurance can slip through the cracks.  

Maintaining your auto insurance is important because having the minimum coverage in Illinois is the law. That’s why we’re here to help you understand what happens if your coverage lapses, how to get car insurance after a lapse, and how you can help prevent it from happening in the first place. 

What counts as a car insurance lapse in Illinois? 

A coverage lapse is a period in which your auto insurance is not active, and if an accident happens, your insurance won’t pay for damages. There are several reasons why lapses can happen. Here are some common reasons you may want to be familiar with: 

• Non-payment of premiums: In Illinois, it’s not required for insurance providers to give car insurance lapse grace periods for missed payments. Depending on your insurer, you may have a few days to a month to make your car insurance payment. Unfortunately, a missed or delayed payment may cause your policy to be canceled. 
• Missed renewal date: Some policies may have set lengths, like six months or one year. If you have a renewal payment for the next term and it’s not made, your coverage could end. Reviewing policy expiration dates may help you maintain your coverage. 
• Termination by your insurer: In Illinois, your insurer can cancel your auto policy for a variety of reasons during the first 60 days while it evaluates your risk level. After 60 days, the insurer can only cancel for specific reasons like nonpayment, misrepresentation, or violations of policy terms.  

Illinois auto insurance grace period—what to expect 

Illinois does not require insurers to offer a grace period for auto insurance payments. If you pay late, your insurer may: 

• Accept the payment with no lapse 
• Reinstate the policy with a coverage gap 
• Refuse your payment 

Driving uninsured can lead to serious consequences like fines, vehicle or license suspension, higher future insurance premiums, and other penalties. Contact your insurer immediately and consider automatic payments to prevent future issues. Contact Illinois Vehicle at 630-446-6030 to see how we can help.  

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What happens after a lapse? 

A lapse in car insurance can mean more than just a missed payment; it may come with serious consequences. In Illinois, insurance is monitored through the Illinois Insurance Verification System (ILIVS), which can quickly detect your coverage status. Here are some issues that may occur if your cover lapses: 

• Legal and financial consequences: If your insurance lapses and you're caught driving without coverage, you could face fines up to $1,000, a traffic citation, license plate suspension, and your vehicle registration could be suspended, too. You must pay a fee of $100 to reinstate the registration.  
• Higher future premiums: Insurance companies may view a lapse in coverage as a sign that you're a higher risk. This could result in higher premiums if you try to get insured again.  
• Loss of benefits: Depending on your policy, some auto insurance perks like roadside assistance or rental car reimbursement may be lost if your policy lapses. 

How to reinstate car insurance after a lapse in Illinois 

If your car insurance coverage lapses, here are three steps to take to help reinstate your coverage:  

• Contact your agency: You can reach out to an Illinois Vehicle agent as soon as you realize there’s been a lapse. Our team can help you navigate your policy issues.  
• Review your coverage or policy: Looking at your policy and its renewal date may help you understand your payment schedule. If you need help understanding your policy, Illinois Vehicle can assist you.  
• Provide the necessary documentation: If you need to purchase a new policy, you may want to have your driver’s license and vehicle information ready. An agent may need this information to further the insurance process. 

At Illinois Vehicle, we make reinstatement easy. We provide fast digital proof of insurance following your payment and can file an SR-22 for you if required.  

Does a lapse in car insurance raise rates? 

A lapse in car insurance often leads to higher premiums because insurers may view drivers without continuous coverage as higher risk. You can improve your insurance rate over time by: 

• Maintaining continuous coverage 
• Having a safe driving record, avoiding violations or insurance claims 

Answering frequent questions (FAQ) 

How long is the car insurance grace period in Illinois?  

There is no state-mandated grace period in Illinois. Any grace period or how your policy is handled after a missed payment depends on your insurance carrier’s rules. 

I missed a payment—am I still covered?  

It depends on your insurer. You are only covered if your carrier’s rules and your policy terms permit. Contact your agent right away to confirm. 

My plates were suspended—what now?  

Secure valid liability coverage and pay the $100 reinstatement fee. Once that’s done, your plates may be restored. 

Will I need an SR-22 after a lapse?  

Only if you are ordered to by the state. If applicable, your insurer can file the SR-22 with the Secretary of State on your behalf.  

How Illinois Vehicle can help 

Reinstate or start a new auto insurance policy with Illinois Vehicle to make sure you’re legally covered on the road. Here’s why working with us may be beneficial to you:  

• Options from multiple carriers: We work with 20+ carriers that can help you find insurance rates that align with your budget. Whether you’re looking for Illinois minimum coverage or something more robust, we can help you discuss your options. 
• Available discounts: Our carriers have various discounts you may qualify for, like bundling multiple vehicles on one policy, keeping a clean driving record, or paying your premium in full.  
• Bilingual agents: Our Spanish-bilingual agents can help you find a policy that fits your needs without a language barrier.  

Avoiding a lapse in coverage can help you stay compliant with the law and prevent extra costs. If your coverage has lapsed or you want to review your current policy, Illinois Vehicle can help you. Call us today at 630-581-4805, visit one of our convenient locations throughout Chicagoland, or get a free auto insurance quote online. 

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Disclaimer:    

This material is for general informational purposes only. Products, services, and discounts referenced herein are not available in all states or in all companies. All statements are subject to the terms, exclusions, and conditions of the applicable policy. In all instances, current policy contract language prevails. Coverage is subject to individual policyholders meeting the insurer's underwriting qualifications and state availability. Other terms, conditions and exclusions may apply.