All 50 U.S. states require drivers to carry auto insurance, but the level of required insurance varies by state. Illinois is one of the more stringent states with respect to auto insurance requirements. When you register a vehicle in Illinois, you agree to carry all required insurance on the vehicle for the duration of the registration. If you are pulled over for a traffic stop or are involved in an accident and you do not carry required insurance or cannot provide proof of insurance, your license plates and registration will be suspended and you will be fined $500.

Three Levels of Coverage Required by Illinois

BIL (Bodily Injury Liability): Liability coverage for injuries/deaths in the other vehicle

• Minimum of $20,000 for one person
• Minimum of $40,000 total for the other driver and all passengers
• PDL (Property Damage Liability): Liability coverage for damage to the other driver’s vehicle or property, and any public or private property surrounding the accident scene
• Minimum of $15,000 for all property damage

UMC (Uninsured/Underinsured Motorist Coverage): Covers your medical (and/or funeral) and property damage costs if the other driver is at fault for the accident and is uninsured

• Minimum of $20,000 per person and $40,000 total
• Minimum of $3,500 for property damages

About Liability Insurance

Liability insurance covers the medical and property damage costs to the other driver (and passengers) if an accident is caused by you. Liability insurance does not cover your medical or property damages if you cause an accident. If the other driver is determined to be at fault for the accident, his/her liability insurance will cover the damages to your vehicle as well as your injuries. If you want to be covered for your own expenses in an accident determined to be your fault, you need additional insurance coverage:

• Collision Coverage: Covers damage to your vehicle or property if you are at fault for the accident
• PIP (Personal Injury Protection): Covers injuries to yourself and your passengers if you are at fault for the accident

If you have a loan, lease, or lien on your vehicle, you may be required to carry additional insurance. You should check with your lender, leaser, or lien-holder to determine what coverage must be maintained on your vehicle in addition to the state-required policies.

About Uninsured Motorist Coverage

Uninsured Motorist Coverage (UMC) protects you when you are involved in an accident for which another driver is at fault, and that driver does not carry the required liability coverage. Even though all Illinois drivers are required to carry liability insurance, the state requires uninsured motorist coverage as an additional safety net to help protect anyone involved in an accident from having to pay out of pocket for medical and property damage expenses.

State-Issued Proof of Insurance

Illinois drivers are required to carry proof of insurance in their vehicles at all times. In case of an accident or a traffic stop, you will be asked to show your proof of insurance to a police officer or state trooper. There are severe penalties for failure to provide proof of insurance.

Penalty for Not Producing Proof of Insurance

• Suspension of license plates and vehicle registration (after which no one is permitted to operate the vehicle)
• $500 fine

How to Reinstate Your License Plates and Registration after Suspension

• Provide proof that you carried required coverage at the time of the traffic stop or accident, or that you now carry the required coverage
• Pay a $100 reinstatement fee

If your registration is suspended for driving without insurance or failing to provide proof of insurance, you can still drive another insured vehicle. In other words, suspension of your registration is different from suspension of your driver’s license. If your driver’s license is suspended for any reason, you cannot legally drive any vehicle.

As an additional way to assure that all Illinois drivers maintain the required auto insurance coverage, Illinois has an automated system that randomly selects vehicles for spot checks. The system sends a questionnaire to the registered vehicle owner requesting proof of insurance, and if the owner does not provide the requested information, the vehicle’s registration can be suspended.

Determining Who is Responsible for Damages in a Collision

After a traffic accident, you are required to file a police report. The police will record both drivers’ and all witnesses’ accounts of the incident, and other information about the traffic situation at the accident scene. This information will be used to determine fault. Whoever is determined to be at fault for a collision is responsible for the damages. To protect yourself, you should never admit fault for an accident; instead, contact the police and your insurance company and allow the third parties to determine fault after reviewing the facts and accounts of the incident.