Illinois Auto Insurance Requirements

Illinois has specific auto insurance requirements that producers must understand.

Mandatory Coverage

Illinois requires all registered vehicles to have liability insurance with minimum limits:

Minimum Liability Limits (25/50/20)

Memory Tip: Remember "25/50/20" for Illinois minimum limits. These are the state-mandated minimums for liability coverage.

Proof of Insurance

Illinois drivers must carry proof of insurance:

• Physical insurance card, OR
• Electronic proof on smartphone
• Secretary of State electronic verification
• Penalties for driving without insurance include fines and license suspension

Electronic Insurance Verification

Illinois uses electronic verification through the Secretary of State:

How It Works

• Insurers report coverage electronically to the state
• Links insurance records with vehicle registration
• Identifies uninsured vehicles automatically
• Random verification letters may be sent

Compliance

• Must maintain continuous coverage
• Lapses trigger registration suspension
• Penalties: $500+ fine, registration suspension
• SR-22 may be required to reinstate

Illinois's At-Fault System

Illinois uses modified comparative negligence with a 50% bar:

How It Works

• Party at fault is responsible for damages
• Fault can be shared between parties
• Recovery reduced by percentage of fault
• 50% Bar: If 50% or MORE at fault, NO recovery

Example

If Driver A is 40% at fault and Driver B is 60% at fault:

• Driver A can recover 60% of their damages
• Driver B recovers NOTHING (50% or more at fault)

Exam Tip: Illinois uses a 50% bar (not 51%). If you are 50% or MORE at fault, you recover nothing.

Uninsured/Underinsured Motorist Coverage

Illinois REQUIRES UM/UIM coverage - it is MANDATORY:

UM/UIM Requirements

Key Points

• UM/UIM is mandatory in Illinois (unlike many states where it's just offered)
• Must carry at least 25/50 UM/UIM limits
• Can reject in writing but rarely done
• Stacking available for multiple vehicles

Exam Tip: Illinois REQUIRES UM/UIM coverage. This is a frequently tested point.

Financial Responsibility

SR-22 Requirements

Illinois requires SR-22 filing for certain drivers:

SR-22 Details

• Filed by insurance company with Secretary of State
• Must maintain for 3 years typically
• Higher premiums common
• Cancellation notification to state

Illinois Auto Insurance Rating

Illinois uses file and use for auto insurance rates:

Permitted Rating Factors

• Driving record
• Credit-based insurance scores (with limitations)
• Age and experience
• Annual mileage
• Vehicle type and safety features
• Territory

Prohibited Discrimination

• Cannot discriminate based on race or religion
• Cannot discriminate based on national origin
• Gender rating restrictions
• Marital status restrictions in some cases