Illinois Auto Insurance

From the windy city to the Shawnee National Forest, to the glittering coast of Lake Michigan, all the way to the historic landmarks in Springfield, there is never a dull moment when you set out to see the sights of the Prairie State. However, before you embark on your big adventure, knowing the ins and outs of Illinois auto insurance is essential.

Keep reading to learn more about Illinois car insurance laws, the top insurers in the state, how you can lower your premiums below the state average cost, and anything else you’ll need to know about car insurance in the state before taking to the open road.

Whether you’re new to the state, binding a car insurance policy for the first time, or just curious about how to tailor your policy to better suit your needs, you’ll need to know a few crucial details before purchasing a policy in the Prairie State. To find affordable car insurance in Illinois, you first need to figure out how much you’re willing to spend on the coverage you need.

When trying to find the car insurance policy that best fits your needs, you must ask yourself which you value more: cost or coverage. If you value coverage over cost, you’ll likely want a full coverage policy from an insurer offering several additional coverage options. If you value cost over coverage, you’ll likely want a minimum coverage policy from an insurer that offers a plethora of discounts.

Suppose you fall in the middle, valuing cost and coverage equally. In that case, you’ll likely want a full coverage policy from an insurer that offers competitive base rates and many opportunities for discounts. 

Finding the cheapest car insurance in Illinois can take a bit of research, but by doing your due diligence, you ensure you get the policy for your needs. A full coverage policy in the state costs, on average, about $1,500 annually, or about 10% less than the national average of $1,670 annually. Since the average full coverage premium is already lower than average, it isn’t too hard to find an even cheaper policy across the state.

The most significant way to lower your premiums is to only have the legal minimum amount of coverage in the state. State laws mandate all drivers must have at least $25,000 in bodily injury liability per person, $50,000 in bodily injury liability per accident, and $20,000 in property damage liability per accident, often noted as 25/50/20 liability coverage. Illinoisans must also have $20,000 in uninsured or underinsured motorist bodily injury coverage (UMBI/UIMBI) per person and $40,000 UMBI/UIMB per accident, but this coverage is automatically lumped in with any policy that meets the minimum liability requirements.

Drivers that lease or finance their vehicles may also be required to have collision and comprehensive coverage as a stipulation on the contract they sign with their lender or leaser. 

Bumping your coverage to the bare minimum is the most significant way to lower your premiums and tally up extra savings. However, it may not be the safest way to save on your auto insurance. While lowering your coverage could save you up to 50% on your premiums, this may not be the safest way to save on your insurance. 

Liability coverage may only be used by the victim in an accident where the policyholder is at fault. In contrast, UMBI/UIMBI can only cover the policyholder’s expenses if the at-fault party in an accident is driving without insurance or lacks legally sufficient coverage. 

There are other ways you can save on your policy in the Prairie State that won’t cost you your peace of mind. Let’s look at how you can lower your premiums without sacrificing your coverage.

Cheap car insurance in Illinois may be tough to find, but not impossible. The first rule of thumb is to get and compare quotes from several insurers to see the variety of base rates offered for a policy with your desired coverages. From here, you can select an insurer that provides everything you need in a policy for the lowest possible premium.

If all your quoted insurers offer a similarly priced policy, the best way to lower your premiums even further is to investigate what types of discounts each company offers. Insurers offer a wide variety of discounts, ranging from criteria-based to enrollment-based, but only some insurers will offer the best discounts for you.

For example, some insurers may offer a discount for students, those who bundle multiple policies or multiple cars on one policy, or those with anti-theft safety features on their vehicles. Some companies may even offer discounts for those with electric or hybrid vehicles or occupational discounts for those working in certain fields. These discounts are criteria-based since they only require policyholders to meet a certain set of criteria and don’t require any actions to be taken. Depending on your insurer, these discounts may lower your premiums by up to 15% and may be stackable.

Enrollment-based discounts require policyholders to enroll in a class or a program before receiving their discount. For example, many insurers have begun to offer safe driving courses in which policyholders can enroll and receive a discount after passing an exam. Other enrollment-based discounts may include telematics programs, in which policyholders track and send their data with a telematics device to prove their safe driving habits to their insurers. Some insurers may also offer pay-per-mile programs where policyholders can receive a discount for driving under the national average of 12,000 miles annually.

Enrollment-based discounts often save customers up to 25% off their premiums, not to mention even more savings when stacked with criteria-based discounts. Sacrificing coverage to save a few dollars each month may sound enticing, but it often only ends poorly in the long run. Maintaining a full coverage policy with several stackable discounts is often the best way to get a cheap policy without putting your safety or the safety of your passengers at risk.

The cheapest liability insurance in Illinois will be a policy at or below $750 annually. Since the average cost of a full coverage policy in the state is about $1,500 annually and a minimum coverage policy is about half or less than half the coverage, the cost of a minimum coverage policy will be about half or less than half the average full coverage policy.

While a liability coverage policy is sufficient in the eyes of the law, it may not have enough coverage for you to feel completely protected on the road. Remember, a minimum coverage policy in Illinois has a liability limit of 25/50/20 and 20/40 UMBI/UIMBI coverage, so if you’re in an accident and your expenses exceed these limits or aren’t covered by these coverage types, you’ll be liable for any remaining expenses. A liability-only policy may protect you from legal penalties but will still leave you at risk of financial ruin.

The average price for car insurance in Illinois is $1,500 annually for a full coverage policy. Since the average car insurance in Illinois is a full coverage policy, it’s safe to assume many residents pay at or around this amount in their premiums. 

However, premiums vary from driver to driver, as insurers use many factors to determine each policyholder’s rates. Some non-driving factors insurers may use to determine premiums are age, gender, ZIP code, and credit score, among other factors. Unfortunately, these factors may help or hurt you, depending on where you fall. 

Insurers use these non-driving factors to determine the risk they take by binding a policy with you. For example, drivers in big cities often pay more in premiums because they’re more likely to get into an accident on the city’s densely populated roads. The risk the insurer takes on by insuring a policyholder in an area where they’re statistically more likely to get into an accident is translated into higher premiums.

The best car insurance in Illinois will depend on the policyholder’s individual needs but is most often a full coverage policy with an insurer offering low base rates and plenty of discounts. The average full coverage policy will include optional coverages like a liability limit higher than 25/50/20, UMBI/UIMBI coverage with a higher limit than 20/40, collision coverage, comprehensive coverage, and medical payments coverage (MedPay), among others. 

There’s no such thing as a one-size-fits-all, best car insurance policy. Insurance is highly subjective to the policyholder, and the best policy for one driver may not be the best policy for another. It’s always important to be comfortable with all aspects of your policy, including the coverage limits, deductibles, and premiums. If you’re confident in all aspects of your policy, it’s the best one for you.

The best car insurance companies in Illinois are Geico, State Farm, Travelers, Nationwide, and Progressive, with average annual full coverage premiums ranging from about $1,000 to $1,500, respectively. These top insurers in the state offer competitively low rates, a wide range of optional coverages, and best-in-class customer service.

Additionally, each insurer offers plenty of discounts, both criteria and enrollment-based. With several coverages to choose from and stackable discounts to lower your premiums below the state average, finding the right policy for your needs has never been easier. 

In Illinois, the minimum auto insurance each driver must have is 25/50/20 liability coverage and 20/40 UMBI/UIMBI coverage. If you lease or finance your vehicle, your lender or leaser may require you to have collision and comprehensive coverages as a stipulation on your legally binding contract. 

Those caught driving without the Illinois state minimum auto insurance will be liable to a range of legal penalties, including fines and license or registration suspension. Driving without any coverage in the state is illegal, and the penalties can vary. More often than not, it’s far less expensive to pay the premiums associated with the minimum required coverage than to pay the consequences for breaking the law.

A minimum of 20/40 UMBI/UIMBI is considered required auto insurance in Illinois. While some states require uninsured or underinsured motorist coverage (UM), the Prairie State only requires uninsured or underinsured motorist bodily injury UMBI/UIMBI, which will only cover the policyholder’s medical expenses if they’re injured in an accident caused by an uninsured driver. 

If a policyholder with just the minimum amount of UMBI/UIMBI  is in an accident caused by an uninsured driver, the policyholder will be liable for any expenses over their minimum 20/40 limit and any repairs they need on their vehicle. Uninsured or underinsured motorist property damage (UMPD/UIMPD) can be purchased with a full coverage policy, so can higher UMBI/UIMBI limits. 

The auto insurance requirements in Illinois mandate all drivers to have at least 25/50/25 liability coverage. Failing to maintain sufficient liability coverage can result in hefty fines and suspension of license or registration. Those caught driving without insurance will face higher premiums once they decide to bind an insurance policy and often require an Illinois SR-22 form which drives up premiums even further. 

The fine for driving without insurance in Illinois can range from $500 to $2,500, depending on the driver’s previous offenses. On top of the fine associated with driving without insurance, drivers who fail to maintain sufficient coverage in the Prairie State also face license or registration suspension and the reinstatement fees that coincide with these penalties. 

In all, it’s much more cost-effective to carry at least a minimum coverage policy than to risk financial ruin for the short-term savings associated with forgoing coverage altogether. 

Since the minimum coverage policy, according to Illinois insurance regulations, is a policy with 25/50/20 liability coverage and 20/40 UMBI/UIMBI coverage, a full coverage policy is any policy with these coverages exceeding the minimum limits and any other additional coverage types tacked on.

The average full coverage policy in the state may include these coverages, among others:

No, Illinois isn’t a no-fault state. Instead, Illinois is a tort or at-fault state with a comparative fault component, meaning at least one driver must be deemed at least 50% at fault in every accident. The driver under 50% at fault is considered the victim of an accident and is permitted to file a claim with the at-fault party’s liability coverage for their medical expenses or vehicle repairs. However, if the at-fault party is deemed 70% at-fault for the accident, it’s possible their insurer may only cover 70% of the victim’s expenses up to the at-fault party’s policy limits. 

No, drivers can’t have personal injury protection or PIP insurance in Illinois. PIP is a first-party medical benefit (FPMB) typically only available in states with no-fault laws. FPMBs work to cover the policyholder’s medical expenses, regardless of who’s at fault in the accident. While drivers cannot make a PIP claim in Illinois, they can carry MedPay, another type of FPMB, on their policies to cover their own medical expenses. 

In Illinois and many other states, drivers who’ve previously been caught driving without insurance, driving while intoxicated, or committing any other traffic violation may be considered high-risk drivers. High-risk drivers in the state often pay more in car insurance premiums because they’ve proven to be at higher risk of filing a claim than other drivers. Essentially, the more money you cost an insurer, the more you pay.

High-risk drivers will often be required to carry an SR-22 form. An SR-22 is a form a high-risk driver’s insurer will file with the DMV to prove the driver has a legally sufficient amount of car insurance in the state. In the Prairie State, car insurance is often more expensive for high-risk drivers and difficult to find from a standard insurer. 

An SR-22 in Illinois is a form an insurer will file on behalf of a high-risk driver to verify they have the legal minimum required insurance coverage in the state. An SR-22 isn’t a type of coverage nor a type of insurance; it’s just a form a driver with several infractions on their driving record may be required to file with their insurer.

In the Prairie State, most drivers who require an SR-22 must have it on file for about three years. 

The cheapest SR-22 in Illinois may cost anywhere from double to triple the average premium cost in the state. While the SR-22 itself doesn’t cost much, costing about $25 to file, the mere existence of it on file for a driver will tell an insurer all they need to know about a high-risk driver’s driving habits. It’s tough for drivers with SR-22s to find insurance through a standard insurer, so they often bind a policy with a non-standard insurer specializing in coverage for high-risk drivers.

It’s always a good idea to carry at least the legal minimum amount of coverage in the Prairie State, and anywhere else you go, lest you have an SR-22 following you down every road, always driving up your premiums. The average cost of a minimum coverage policy is far less than that of high-risk insurance, so the long-term benefits outweigh the short-term savings of driving uninsured. 

The best way to get affordable car insurance in Illinois from one of the state’s top insurers is to get and compare quotes online. Getting and comparing quotes allows you to tailor your policy specifically to your needs so you’re always comfortably protected. 

Luckily, here at Clovered, quotes are our specialty. You can use our free quoting tool to compare rates from the state’s top insurers in just minutes. If you prefer to speak to one of our licensed agents about your quote or any remaining questions about auto insurance in the Prairie State, contact us at 833-255-4117 or at [email protected].