Choosing the right auto insurance policy in Illinois can be challenging. With countless companies vying for your business and so many options to consider, it’s easy to feel lost. But don’t worry. This guide breaks down Illinois’ insurance regulations, policy options, and smart strategies for selecting insurance coverage so that you can feel confident choosing a policy that fits your needs.
Understanding Auto Insurance Requirements in Illinois
In Illinois, drivers are legally required to carry minimum liability coverage. This includes bodily injury liability of $25,000 per person or $50,000 per accident, plus property damage liability of $20,000. You’ll also need uninsured motorist coverage matching those bodily injury amounts. This protection kicks in if you’re hit by an uninsured driver.
Illinois operates a fault-based system, meaning whoever causes the crash pays for damages. Since 2020, the state has used the Electronic Liability Insurance Verification System, which checks vehicle registrations against insurance records twice yearly. Despite this, about 16.3% of Illinois drivers still drive without proper coverage.
If you drive uninsured, you can expect serious consequences. For a first or second offense, you get a $500-$1,000 fine, a license suspension of up to three months, plus a $100 reinstatement fee. For a third offense, you’ll face a minimum $1,000 fine, possible registration suspension, and you may need SR-22 insurance going forward.
Types of Auto Insurance Policies Available
Illinois drivers typically choose between basic liability and full coverage insurance. Liability coverage meets state minimum requirements and only pays for damage to other people and their property, such as their car repairs and medical bills. Full coverage insurance includes liability coverage plus collision and comprehensive coverage, protecting you, your car, and others.
The price gap between these two types of insurance is significant. In Illinois, full coverage insurance averages about $2,479 a year, while minimum liability coverage averages just $688. While the latter might sound better for your budget, if your car gets damaged in an accident, you’ll have no coverage with which to fix or replace it. Full coverage insurance is often the smarter choice for newer or financed vehicles, or if you can’t afford to replace your car if it gets wrecked.
Comprehensive vs. Collision Coverage
Comprehensive and collision coverage work together to offer complete car protection. Comprehensive coverage protects against non-collision issues such as theft, vandalism, hail damage, floods, falling objects, animal strikes, and broken glass. This is especially useful in Illinois, where extreme weather can cause unexpected vehicle damage.
Collision coverage pays for damage when your vehicle hits something, such as a tree, pole, guardrail, pothole, or another vehicle. Both types of coverage will require you to pay a deductible and are typically necessary if your car is financed.
Collision coverage usually costs more than comprehensive, with collision costing anywhere up to $1,000 a year and comprehensive just $30 to $200 annually. Experts often suggest using the 10% rule to decide if coverage is worth paying for. If combined annual coverage costs exceed 10% of your car’s value, consider dropping them. For example, if you’ve got a car that’s only worth $2,000, paying $200 yearly in insurance might not make sense.
Personal Injury Protection in Illinois
Personal injury protection (PIP) isn’t required in Illinois, but it can be a financial lifesaver. Known as no-fault insurance, it covers expenses resulting from a crash, regardless of who caused it. These expenses include medical bills, lost wages, childcare costs, and even funeral costs.
Coverage options typically range from $2,500 to $25,000, with some policies offering up to $250,000 for permanent injuries. PIP is particularly helpful if your health insurance has high deductibles. Unlike regular health coverage, PIP pays immediately — there’s no waiting to determine fault or extensive paperwork to deal with. It fills any gaps in your medical coverage and provides additional peace of mind.
Medical Payments Coverage
Medical payments coverage (MedPay) is another optional but helpful add-on that covers expenses related to car accidents. Most MedPay coverage limits fall between $5,000 and $10,000, giving you quick access to cash for accident-related medical costs. It pays medical bills for you and your passengers after a crash, regardless of fault, with zero copays or deductibles. It covers everything from ambulance rides and emergency room visits to surgeries, hospital stays, follow-up care, and rehab. It even applies if you’re hit while walking or riding in someone else’s car.
Optional Add-Ons to Consider
Several extra coverages can save you time and money after an accident. Rental reimbursement coverage pays for a temporary vehicle while yours gets repaired after a covered claim. Typically, it requires you to have comprehensive and collision coverage and usually provides around $40 to $60 per day for rental expenses.
If you’re leasing or financing your vehicle, gap coverage is a must-have. It pays the difference between what you owe on your car and its actual worth if it’s totaled. Roadside assistance can be a lifesaver if you find yourself stranded due to a flat tire, a dead battery, or if you need towing. If you don’t own a car but drive one occasionally, non-owner insurance provides liability protection when borrowing or renting vehicles.
Other options include custom equipment coverage for aftermarket add-ons, accidental death benefits, and towing coverage. Your driving habits, car type, and budget should guide which extras make sense for you.
How To Evaluate and Choose the Right Policy
Finding your perfect policy requires a little bit of research. Get quotes from at least three companies with identical coverage limits and deductibles, and make use of comparison sites or an independent agent to find the best deal.
Factors that impact your rate include your age, gender, marital status, driving history, location, vehicle type, mileage, and credit score. Be wary of insurers asking for cash-only payments, offering unrealistic pricing, not providing proper documentation, or using high-pressure sales tactics. Insurance fraud costs the U.S. $308 billion per year, and unscrupulous insurers are more common than you might think.
Strategies To Save on Your Auto Insurance
If you want to slash your insurance bill, then raise your deductible. Going from $200 to $1,000, for example, can cut collision and comprehensive costs by up to 40%. If you have multiple cars, insuring them together can save you money, as can bundling your auto insurance with your home insurance policy.
Your driving record matters, too. Get a speeding ticket and you could see your rates increase by as much as 21%, while an at-fault accident can raise your premium by up to 43%. Drivers with a clean record will often qualify for safe driver discounts. Students with a 3.0 GPA or higher may be eligible for discounts, too.
Make the Right Choice for Your Illinois Auto Insurance Needs
Choosing the right Illinois auto insurance means juggling legal requirements, financial protection, and affordability, but you don’t have to navigate this decision alone. Our team at American Auto Insurance knows Illinois requirements inside and out and can help find you coverage that meets your needs. Call us at 773-286-3500 or contact us through our website for a personalized quote. We’ll help you protect what matters most as you drive those Illinois roads.
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