Car Insurance: Illinois

Posted & filed under States.

Illinois QuarterIllinois Auto Insurance Requirements
Reviewed by Dr. Christine Berry

Minimum auto insurance coverage requirements in Illinois are mandated by state law and the Illinois Secretary of State, Driver Services Department. The following minimum coverage is required on every registered vehicle:

Table showing minimum required amounts of car insurance coverage in Illinois(Source: Illinois Driver Services Department)

Driving without the mandatory liability insurance in Illinois will result in a minimum $500 fine and $100 registration reinstatement fee for the first offense; subsequent offenses result in a fine of up to $1,000 and a suspension of driving privileges for four months. Attempting to use a fraudulent proof of insurance card is punishable by a six-month suspension.

The Illinois Automobile Insurance Plan is available to drivers who are unable to obtain required coverage through the voluntary market. More information is available on the AIPSO website.

Factors Influencing Car Insurance Premiums in Illinois

Getting a quote for cheap car insurance in Illinois requires research and rate comparisons between different insurance companies, even though Illinois ranks among the least expensive states for car insurance costs. One positive factor impacting insurance rates in Illinois is that vehicle theft rates are well below national averages. On the other hand, the Insurance Research Council estimates that as many as 15% of Illinois drivers may be uninsured, which is more than the majority of states and pushes Illinois rates up a bit.

The average auto insurance premium for residents in Illinois is $728; the U.S. average is $785.

Tips for Obtaining Cheap Car Insurance in Illinois

  • If you’re over 55, take a state-approved defensive driving course for a policy discount
  • Make a habit of driving safely and avoiding traffic tickets
  • College students and recent graduates are often eligible for discounted car insurance, depending on the insurance company’s policies
  • Combine home, auto, and life insurance with a single company. When shopping for insurance, look for companies that offer bundling discounts (most do)
  • Pay your bills on time. In Illinois, insurance companies can increase your insurance premium if your credit score is poor.
  • Consider whether a higher deductible is better for you. This is a sure way to reduce your insurance premium, but it also means you’ll pay more out-of-pocket in the event of a car insurance claim

Illinois Statistics

Auto Theft: Illinois has a relatively high vehicle theft rate, but it has been decreasing (as is the case in most states) consistently over the past 10 years. This can be attributed primarily to anti-theft devices being standard on recent model cars, as well as public awareness of the issue:

Chart showing Illinois motor vehicle thefts per capita, 1990 to 2010Chart showing the decline in stolen cars in Illinois from 1990 to 2010Table showing number of stolen cars in Illinois, total and per capita from 1990 to 2010

(Source: Illinois State Police, Crime in Illinois annual reports)

Automobile Accidents: The total vehicle miles traveled in Illinois has remained almost constant, as have vehicle accident fatality rates. Illinois has one of the lowest numbers of deaths in car crashes in the country, despite having a fairly high population concentration.

Deaths from Car Accidents in Illinois, 2006-2010

(Source: National Highway Traffic Safety Administration)

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