Illinois Auto Insurance News & Important Information

Important insurance requirements, Illinois compliance information, and official resources for Illinois drivers. Click here ?( now all information below will appear)

Mandatory Insurance — Illinois Electronic Insurance Verification

Illinois requires vehicles with valid registration to maintain liability insurance in accordance with the Mandatory Insurance Law, 625 ILCS 5/7-601.

The Illinois Secretary of State uses an Electronic Liability Insurance Verification system to verify whether registered vehicles have active liability insurance. Each vehicle's insurance is checked electronically at least twice each year through a system connected with insurance companies writing automobile liability coverage in Illinois.

If insurance cannot be verified during the initial check, the vehicle is checked again approximately 30 days later. If coverage still cannot be verified, the registered owner may receive a notice from the Illinois Secretary of State.

Registration Suspended for No Insurance

If your Illinois license plates or vehicle registration are suspended because insurance could not be verified, no one may legally operate that vehicle while the registration is suspended.

To resolve the issue, you may need to obtain active liability insurance and follow the reinstatement instructions provided by the Illinois Secretary of State.

If your suspension notice directs you to the Illinois Insurance Verification System, you will need the reference number printed on the letter.

Illinois Insurance Verification System:ILIVS — Illinois Insurance Verification System

Illinois Minimum Auto Insurance Requirements

Illinois drivers are required to carry minimum automobile liability insurance.

Current minimum liability limits are commonly shown as:

$25,000 — Bodily Injury per person$50,000 — Bodily Injury per accident$20,000 — Property Damage per accident

These limits are often written as 25/50/20.

These are only the legal minimums. They may not provide enough protection after a serious accident.

Proof of Insurance Must Be Available

Illinois drivers must carry evidence showing that the vehicle is currently insured.

Acceptable proof may include an insurance identification card, current declarations page, qualifying insurance binder or certificate, and other forms permitted under Illinois law.

Illinois also allows qualifying electronic proof of insurance, such as an insurance card displayed on a mobile device.

Received an ILIVS Insurance Verification Letter?

Receiving an Illinois insurance verification notice does not always mean you were uninsured.

Sometimes insurance cannot be matched because of incorrect or inconsistent information, such as:

VIN mismatch
Incorrect vehicle information
Name mismatch
Recent vehicle replacement
Recent policy change
Policy reporting issue

If you had active insurance on the verification date, contact your insurance agent and provide the reference number and verification date from the letter.

Do not ignore the notice.

SR-22 Financial Responsibility Insurance

An SR-22 is not a separate type of insurance policy. It is a Financial Responsibility Certificate filed by an authorized insurance company with the Illinois Secretary of State.

Illinois may require an SR-22 for certain drivers following events such as suspensions, revocations, unsatisfied judgments, mandatory insurance supervision, or multiple mandatory insurance violations.

In many cases, Illinois requires the SR-22 filing to be maintained for three years.

If required SR-22 coverage expires or is canceled, the insurer must notify the Secretary of State and driving privileges may be suspended.

Uninsured Driver Involved in an Accident

Illinois' Safety and Financial Responsibility Law can apply when an uninsured motorist is involved in a qualifying accident involving property damage, injury, or death.

If the uninsured driver is determined to have probable liability, the Illinois Secretary of State may suspend the person's driver's license and/or vehicle registration until applicable requirements are satisfied.

An SR-22 filing may also be required.

Auto Insurance Policy Canceled

Cancellation means the insurance company terminates your coverage before the policy's scheduled expiration date.

During approximately the first 60 days of a new Illinois auto insurance policy, an insurer has broader authority to review the risk and determine whether it will continue the policy.

After the policy has been in force longer than 60 days, Illinois law restricts the reasons an insurer may cancel coverage.

Nonpayment, material misrepresentation, certain driver-related issues, or violation of policy conditions are among possible reasons.

Auto Insurance Policy Nonrenewal

A nonrenewal is different from a cancellation.

A cancellation ends coverage before the policy expiration date. A nonrenewal means the insurance company decides not to offer another policy term after the existing policy expires.

Illinois insurance companies must follow specific notice requirements when nonrenewing private passenger auto policies.

If you receive a nonrenewal notice, contact your insurance agent as soon as possible so replacement coverage can be reviewed before your current policy expires.

First Auto Insurance Payment Returned or Declined

The first payment on a new insurance policy is especially important.

The Illinois Department of Insurance advises that when an initial premium payment by check, credit card, or money order cannot be processed because of insufficient funds, the policy may potentially be considered null and void, depending on the circumstances.

If a payment is returned or declined, contact your insurance agent immediately.

Recently Purchased or Replaced a Vehicle?

Do not wait to notify your insurance company when buying or replacing a vehicle.

Illinois law recognizes certain forms of insurance evidence involving a vehicle purchased within the previous 60 days together with insurance documentation for a replaced vehicle, but this should not be treated as a substitute for properly adding the new vehicle to your insurance policy.

Insurance company provisions for newly acquired vehicles vary.

Contact your insurance agent as soon as the vehicle is purchased.

Illinois Auto Accident — Filing a Claim

After an accident or vehicle loss, report the claim promptly to your insurance company or insurance agent.

The Illinois Department of Insurance recommends immediately reporting theft, vandalism, and hit-and-run accidents to law enforcement.

Drivers should also protect damaged vehicles from additional damage and cooperate with reasonable insurance company claim investigations.

Can I Choose My Own Auto Repair Shop?

Yes.

In Illinois, you are generally not required to use the repair shop recommended by your insurance company.

However, if the repair facility you choose charges more than the amount considered reasonable by the insurer, you may be responsible for some of the difference.

Illinois Total Loss — Know Your Rights

When a vehicle is declared a total loss, Illinois has specific rules governing how insurance companies determine the vehicle's value and handle the settlement.

Illinois consumers should also understand rules involving:

Vehicle valuation
Sales tax
Title and transfer fees
Deductibles
Replacement vehicles
Keeping a totaled vehicle
Disputing the amount of the loss

For example, Illinois allows an owner to keep certain totaled vehicles only under specific conditions, including vehicles that are generally nine model years old or older or certain hail-damaged vehicles.

Filing a Claim Against Another Driver's Insurance

If another driver caused an accident, you may have the option to make a claim against that driver's insurance company.

This is known as a third-party claim.

Your rights and the insurance company's obligations can differ from a claim filed through your own insurance policy because you do not have a direct insurance contract with the other driver's insurer.

Rideshare, Delivery and Business Use

Personal auto insurance should not automatically be assumed to cover every type of commercial, rideshare, or delivery activity.

If you begin driving for a rideshare company, delivery service, or using your vehicle regularly for business, notify your insurance agent.

Your existing insurance policy may contain limitations or exclusions, and additional coverage may be necessary.