Illinois auto insurance requirements: the complete guide

Minimum liability coverage

Illinois requires every motor vehicle operated on its roads to be insured (625 ILCS 5/7-601). The policy must include liability coverage of at least the amounts set in 625 ILCS 5/7-203:

These limits are unchanged as of October 2026. A bill to raise them (HB 66) was introduced but stalled in committee. If the law changes, we will update this guide.

Liability coverage pays for injuries and damage you cause to others. It does not repair your own car. The minimum is the legal floor, not a recommendation: if a crash costs more than your limits, you can be personally responsible for the difference.

Uninsured & underinsured motorist coverage

Every Illinois auto liability policy must include uninsured motorist (UM) bodily injury coverage of at least $25,000 per person and $50,000 per accident (215 ILCS 5/143a). UM pays for injuries to you and your passengers caused by an uninsured or hit-and-run driver.

• Insurers must offer UM limits up to your bodily injury liability limits. You may choose lower UM limits, but only by rejecting the higher limits in writing.
• Underinsured motorist (UIM) coverage applies at the same limits as your UM coverage when those limits are higher than the state minimum (215 ILCS 5/143a-2).
• In 2023 the Illinois Supreme Court ruled in Galarza v. Direct Auto that policies cannot limit UM coverage to people riding in an insured vehicle. UM can protect you as a pedestrian or cyclist struck by an uninsured driver.
• Uninsured motorist property damage is optional in Illinois. It is typically available up to $15,000 with a $250 deductible.

What is optional

Medical payments, collision, comprehensive, rental reimbursement and roadside assistance are not required by state law. Illinois does not require personal injury protection (PIP).

Optional does not always mean unnecessary. If your vehicle is financed or leased, your contract will almost certainly require collision and comprehensive (see lienholder requirements below).

Proof of insurance

You must carry proof of insurance in the vehicle and show it when a police officer asks (625 ILCS 5/7-602). Illinois accepts either:

• The paper Illinois insurance identification card issued by your insurer, or
• Electronic proof displayed on a phone or other device.

The ID card shows the insurance company, policy number, effective and expiration dates, the vehicle (year, make and VIN) and the named insured. Check that the details are correct whenever you add or replace a vehicle.

The Illinois Insurance Verification Program

The Illinois Secretary of State verifies insurance electronically with insurance companies through the Illinois Insurance Verification Program. In practice, that means the state can check whether a registered vehicle is insured without you sending anything in.

If the state can't confirm coverage, you may receive a letter asking for proof. Respond promptly. If you were insured, contact us and we will help you get the documents you need from your insurer.

Penalties for driving uninsured

Operating an uninsured vehicle in Illinois is an offense under 625 ILCS 5/3-707. Penalties include:

A conviction for driving uninsured can also lead to an SR-22 requirement and higher premiums for years. The details of any penalty depend on your record and the court, so check any notice you receive and ask a lawyer about legal questions.

Fault and comparative negligence

Illinois is an at-fault (tort) state. The driver who causes a crash, and their insurer, is responsible for the damages. That is why liability coverage is mandatory and PIP is not.

Illinois follows modified comparative negligence (735 ILCS 5/2-1116):

• If you are more than 50% at fault, you cannot recover damages from the other driver.
• If you are 50% or less at fault, you can recover, but your recovery is reduced by your share of fault. For example, if you are 20% at fault, your recovery is reduced by 20%.

Fault is often shared, which is one reason adequate limits matter on both sides of a claim.

Reporting a crash

Crashes involving injury or death must be reported to police. Under 625 ILCS 5/11-406, drivers must also file a written crash report with the Illinois Department of Transportation (IDOT) within 10 days if the crash involved:

• Injury or death, or
• Property damage over $1,500, or over $500 if any driver involved was uninsured.

At the scene: stop, check for injuries and call 911 if anyone is hurt, move to a safe spot if you can, exchange names, insurance and vehicle information, and take photos. Then notify your insurance company as soon as possible.

Deadlines to file claims and lawsuits

There are two different clocks after a crash:

Different deadlines can apply in some situations, for example claims involving minors or government vehicles. If you are considering a lawsuit, talk to an Illinois attorney early.

SR-22 requirements (summary)

An SR-22 is a certificate of financial responsibility that your insurance company files with the Illinois Secretary of State. It is typically required after a DUI, a conviction for driving uninsured, a judgment suspension, an uninsured crash, or certain other suspensions.

• It generally must be kept in force for 3 years.
• If the policy lapses, the insurer notifies the state with an SR-26, and your driving privileges can be suspended again.
• Owner and non-owner (named operator) SR-22 policies are available.

Read our full SR-22 guide.

Lienholder and lease requirements

State law sets the minimum for everyone. If you finance or lease a vehicle, your contract adds requirements on top of that. Lenders and lessors require collision and comprehensive coverage, and typically also:

• A maximum deductible for collision and comprehensive
• That they be listed on the policy as lienholder or loss payee, so claim payments for the vehicle include them
• Notice if coverage is cancelled or changed
• Leases often require liability limits higher than the state minimum

If physical damage coverage lapses, the lender may buy coverage that protects only its interest and add the cost to your loan. Check your finance or lease agreement and send us a copy if you're unsure.

Cancellation and other rules

Illinois law limits the reasons an insurer may cancel an auto policy that has been in force for more than 60 days, such as nonpayment of premium, suspension or revocation of a driver's license, or fraud, and requires advance written notice before cancellation.

Using a hand-held phone while driving is illegal in Illinois. Tickets go on your record and generally raise premiums at renewal.