Illinois Auto Insurance Guide (Know Before You Buy)

Auto insurance may seem complicated with all the different terminology and components. In Illinois, drivers are legally required to have certain auto insurance minimums, so it’s important to understand what you need before you buy.

Here’s a detailed, straightforward guide that may help you understand auto insurance and how to obtain it in Illinois. Learn about coverage types, factors that impact pricing, how to make an insurance claim, and other information that may make auto insurance less overwhelming. Find out also how you could save on auto insurance with Illinois Vehicle Insurance Agency, LLC (Illinois Vehicle).

Illinois car insurance requirements

Car insurance is mandatory in Illinois for every driver. Most states, Illinois included, require a coverage called minimum liability, which can help pay for the injuries or property damage to a third party if you are at fault in an accident. This may help you minimize financial losses from paying the other driver’s medical expenses or car repairs. 

The required state minimum coverage limits in Illinois, known as 25/50/20, are:

• $25,000 per person 
• $50,000 per accident for bodily injury liability
• $20,000 for property damage liability

Under Illinois law, liability insurance also must automatically include uninsured motorist coverage of at least $25,000 per person and $50,000 per accident. This coverage can pay for injuries to you and your passengers if you are in an accident caused by another driver who does not have insurance. 

Drivers who don’t carry the required minimum insurance can face penalties, such as a fine of at least $500 for driving without insurance or even having their vehicle registration suspended. That’s why it’s important to speak with an insurance agent to get auto insurance that complies with state laws and gives you the financial support you need in case of an accident.

Simply call 630-581-4805 and a Spanish-bilingual agent at Illinois Vehicle would be happy to assist you with your insurance questions and needs.

Call to Get a Quote

Coverage types explained 

Picking the right coverage for you can be easier when you know your options. Here is a quick rundown of the different types of insurance coverage:

• Liability: Can pay for injuries and damage you cause to someone else in a covered accident. Doesn’t pay for your own injuries or car damage
• Uninsured/underinsured motorist (UM/UIM): Can pay for your injuries, up to determined limits, if you are in an accident with an at-fault driver who doesn’t have sufficient coverage, or any insurance at all. Uninsured Motorist Property Damage is another option, which can cover damage to your vehicle.
• Medical payments coverage (MedPay): Can pay for the treatment of your injuries following an accident, including medical, dental, and other procedures. It can pay even if you are hit outside of your vehicle. 
• Collision: Can pay for damage to your car caused by a collision, regardless of fault in the accident
• Comprehensive: Can pay for accidents unrelated to collision with another car, such as theft, vandalism, falling objects, extreme weather, or collision with animals
• Rental Reimbursement: Can pay for a car rental if your vehicle is inoperable or being repaired, typically following a covered accident
• Roadside assistance: Can provide helpful services such as emergency fuel delivery, lockout assistance, and towing

By combining minimum liability insurance with additional coverage, typically collision and comprehensive, you can get what is known as “full coverage.” While not an actual insurance policy, full coverage may help you tackle the costs of additional incidents that are not covered by liability. Lenders often require full coverage when you lease or finance a vehicle. Speak to an expert Illinois Vehicle agent today and explore how full coverage could help you.

Documentation you will need

To make the process of getting auto insurance more efficient, it helps to have the documents your insurer will ask you for on hand. Here are the documents you will need: 

• Valid driver’s license: Even if you don’t have a U.S. driver’s license, our carriers may accept other forms of identification such as foreign licenses, Matricula Consular, temporary licenses, and more.
• Vehicle information: Year, make, model, vehicle identification number (VIN)
• Proof of address: Bring documents that show your full name and current home address, like a utility bill or bank statement. Bringing at least two documents can help you avoid delays.
• Payment method: Accepted payment types may vary, including cash, debit, or credit cards. Whether you prefer to pay monthly or in full, we can assist you.
• Additional: A social security number (SSN), which is not always required, or an Individual Taxpayer Identification Number

Illinois insurance costs and what impacts them

Affordability is typically a top concern for drivers selecting car insurance. How much is car insurance in Illinois? The answer varies widely as rates depend on personal factors like your vehicle, age, and even location. Typically, premium rates can range from $50 to around $100 per month.

Here are common factors that impact your rate:

• Age: Typically, the younger you are the less driving experience you have and the higher your rate will be. 
• ZIP Code: Where you live may determine how much you pay based on local factors like crime rates, accident frequency, road conditions, and population density. 
• Coverage level: If you have more coverage on your policy or higher coverage limits, your premium will likely be higher.
• Driving History: Having traffic tickets or prior accidents may increase your premium.
• Credit: Insurers may use a credit-based insurance score, along with other factors, to underwrite or rate your policy. The better your credit is, the lower your rate may be. 
• Vehicle type: The make, model, and year of the vehicle you drive may impact your rate, with high-value cars usually leading to higher rates. 

A Spanish-bilingual Illinois Vehicle agent can provide you with a quick personalized quote, helping you understand how much insurance may cost based on your specific factors. Just call 630-581-4805 to get started.

Call to Get a Quote

Ways to save on car insurance

There are ways you can reduce your insurance costs as an Illinois driver. Making certain changes to your driving habits or adjusting your policy could help. Here are some smart strategies that can help you save:

• Raise your deductible: Raising your deductible, which is the amount you pay out of pocket for a collision or comprehensive coverage insurance claim, can lower your monthly premium.
• Pay in full: Prepaying your premium in full rather than splitting into monthly payments can help you save. 
• Explore Discounts: There are discounts you may qualify for based on your driving record, bundling multiple policies, or insuring more than one vehicle under the same plan. Ask your Illinois Vehicle agent about discounts and get a free quote today. 
• Compare carriers: Take time to shop around and weigh your insurance options carefully. An Illinois Vehicle agent can walk you through the various insurance providers we work with, so you can find the best fit.
• Telematics: Some insurers provide telematics that track driving and offer discounts for safe practices like smooth braking, steady acceleration, obeying speed limits, and more. 
• Keep a clean driving record: Tickets, violations, and driving accidents could raise your premium, so having safe driving habits can keep your record clean and help you save.
• Keep a good credit history: Maintain a good credit standing to avoid paying more due to a less-than-perfect credit history. 

Illinois SR-22 filing rules and costs

In certain cases, drivers may be required by a court to obtain an SR-22, or certificate of financial responsibility. This usually applies for individuals with serious driving violations like driving without insurance or reckless driving. An SR-22 certificate is not insurance; it’s a form that confirms that you meet your state’s minimum liability requirements.

An SR-22 requirement typically lasts about three years, but the length can vary depending on the offense and the state. There’s also a filing fee, which can vary. In Illinois, you generally need to contact an insurance provider to obtain an SR-22. To get one, you must purchase an auto insurance policy with the minimum state requirements and maintain continuous coverage to avoid further legal issues. 

Not all insurers offer SR-22s, but an Illinois Vehicle agent can help you navigate the filing process smoothly and stress-free, even if you do not own a vehicle. 

Illinois auto insurance claim process 

Getting into a car accident can be stressful, especially if you're unsure what to do next. Even experienced drivers could be involved in one. Being prepared can make the situation easier to handle. Here are some steps you can take after being in a car accident:

• Take safety precautions: Check for any injuries and call 911 so first responders can help. If it’s safe, move your car out of traffic and turn on your hazard lights. 
• Gather information: Exchange names, contacts, insurance details, and vehicle information (make, model, color, and license plate) with the other driver. Get contact information from witnesses if possible. 
• File a claim: Contact your insurance immediately to report the accident and share a police report if you filed one. In Illinois, you must also fill out a crash report with the Illinois Department of Transportation if there were injuries.
• Comply with the investigation: Provide all necessary information and sign any claims forms requested by your insurance or the other driver’s. This helps to determine who's at fault, what damages or injuries are covered, and the total costs involved.
• Submit repair estimates: If requested, get an estimate from one or more repair shops to give the insurance company a clear idea of the costs they may need to cover.
• Choose a repair shop: You can choose any repair shop and are not required to use one recommended by your insurance company. Just keep in mind, if your shop charges more than the insurance company’s suggested shop, you may need to pay the difference.
• Rent a car, if necessary: If your car can’t be driven or is being repaired following an accident, you may need a rental. If you have rental reimbursement coverage, your insurance can help cover the cost. In Illinois, if the other driver is at fault, their insurance is legally required to reimburse you for the cost of a rental.

Illinois auto insurance laws and regulations

In Illinois, mandatory liability insurance is strictly enforced through an Electronic Insurance Verification and traffic citations. If you’re caught driving without insurance for the first time, your driver’s license may be suspended until you purchase liability insurance and pay a reinstatement fee. Liability insurance is required in Illinois for plated and driven vehicles, except trailers. 

Having liability insurance is essential, not only to comply with Illinois state law, but also to help cover potential costs if you’re involved in an accident. 

To make sure you meet Illinois’ minimum insurance requirements, speak with a qualified agent. For a more detailed look at Illinois auto insurance legal regulations, you can reference government resources:

• Illinois Secretary of State’s Mandatory Insurance page
• Illinois Liability Insurance Verification System
• Illinois General Assembly’s required liability insurance policy

Feel free to reference this Illinois auto insurance guide whenever you need a refresher on state minimums, insurance costs and key factors, or coverage options. 

If you’re ready to get started, obtain a free quote today with Illinois Vehicle. Visit one of our more than 40 locations trusted by thousands of drivers just like you. 

Get a Quote

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.