Illinois auto insurance, explained line by line
An auto policy is a bundle of separate coverages. Some are required by Illinois law, some by your lender, and some are simply smart. Here is what each one does, so you can decide what you need.
Required, required by lenders, or optional
Use this table as a quick map. Each coverage is explained in more detail below.
| Coverage | What it pays for | Status in Illinois |
|---|---|---|
| Bodily injury & property damage liability | Injuries and damage you cause to others | Required: at least 25/50/20 |
| Uninsured motorist bodily injury | Your injuries when the at-fault driver has no insurance | Required: at least 25/50 |
| Underinsured motorist bodily injury | Your injuries when the at-fault driver's limits are too low | Applies when you choose UM limits above the state minimum |
| Uninsured motorist property damage | Damage to your car caused by an uninsured driver | Optional |
| Collision | Damage to your car from a crash, regardless of fault | Optional; usually required on financed or leased cars |
| Comprehensive | Theft, vandalism, hail, flood, fire, animal strikes, glass | Optional; usually required on financed or leased cars |
| Medical payments | Medical bills for you and your passengers, regardless of fault | Optional |
| Rental reimbursement | A rental car while yours is repaired after a covered claim | Optional |
| Roadside / towing | Towing, jump-starts, lockouts, flat tires | Optional |
Liability coverage
Liability insurance pays for the harm you cause to other people when you are at fault in a crash. It does not pay to fix your own car or treat your own injuries.
Illinois law (625 ILCS 5/7-601 and 5/7-203) requires every vehicle on the road to carry at least:
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $20,000 property damage liability per accident
You will often see this written as 25/50/20.
Is the minimum enough?
It is legal, but it may not go far. Hospital bills and the cost of a newer vehicle can exceed these limits, and Illinois is an at-fault state, so you can be held personally responsible for damages above your policy limits. Higher limits usually cost less than people expect. We will price several options side by side so you can see the difference.
Bodily injury liability
Pays medical bills, lost wages and pain-and-suffering claims for people you injure, including passengers in other cars and pedestrians. It also pays for your legal defense if you are sued.
Property damage liability
Pays to repair or replace other people's property you damage: their vehicle, a fence, a storefront, a light pole.
Uninsured & underinsured motorist coverage
Not every driver on Illinois roads carries insurance, and many carry only the minimum. These coverages protect you when the at-fault driver can't pay.
Uninsured motorist (UM)
Pays for injuries to you and your passengers caused by a driver with no insurance, or by a hit-and-run driver. Illinois requires at least 25/50 (215 ILCS 5/143a).
Insurers must offer UM up to your liability limits. You can choose lower UM limits, but only in writing and not below the state minimum.
Underinsured motorist (UIM)
Applies when the at-fault driver has insurance, but not enough to cover your injuries. In Illinois, UIM applies at the same limits as your UM coverage when those limits are higher than the state minimum (215 ILCS 5/143a-2).
Uninsured motorist property damage
Optional in Illinois. Helps pay to repair your car when an identified uninsured driver hits it. It is typically available up to $15,000 with a $250 deductible. It can be useful if you don't carry collision.
UM protects you outside the car, too. In 2023 the Illinois Supreme Court held (Galarza v. Direct Auto) that policies cannot limit uninsured motorist coverage to people inside an insured vehicle. That means UM can cover you as a pedestrian or cyclist hit by an uninsured driver.
Collision & comprehensive
Together these are often called "physical damage" or "full coverage." They repair or replace your own vehicle, minus your deductible, up to its actual cash value.
Collision
Pays for damage to your car when it hits another vehicle or object, or rolls over, no matter who caused it. If another driver was at fault, your insurer may pursue their insurer to recover what it paid, including your deductible.
Comprehensive
Pays for damage from things other than a collision: theft, vandalism, fire, hail, wind, flooding, falling objects, hitting a deer, and broken glass.
Choosing a deductible
A higher deductible lowers your premium, but you pay more out of pocket when you claim. Pick an amount you could pay tomorrow without strain.
Financed or leased?
Lenders and leasing companies require collision and comprehensive, usually with a maximum deductible, and list themselves on the policy as lienholder or loss payee.
Older car?
If your car is paid off and worth little, the cost of physical damage coverage may outweigh what you could collect. We will show you the numbers so you can decide.
Medical payments, rental & roadside
Small additions that can make a big difference on a bad day. Availability and limits vary by insurance company.
Medical payments
Pays reasonable medical expenses for you and your passengers after a crash, regardless of fault, up to a chosen limit. Illinois does not require personal injury protection (PIP), so med pay is the main way to get no-fault medical coverage on an auto policy.
Rental reimbursement
Pays toward a rental car while yours is in the shop after a covered collision or comprehensive claim, up to a daily and total limit. It usually requires that you carry the matching physical damage coverage.
Roadside assistance
Covers towing, battery jump-starts, lockouts, flat-tire changes and fuel delivery, often for a small added premium. Check whether you already have it through a vehicle warranty or another membership.
Drive for Uber, Lyft or a delivery app? Most personal auto policies exclude driving for a rideshare or delivery platform. You may need a rideshare endorsement to close the gap. Read our rideshare guide.
How auto insurance premiums are set
Each insurance company uses its own rating plan, which is why the same driver can get very different prices from different carriers. Insurers commonly consider:
- Your driving record, including tickets and at-fault accidents
- Your claims history
- Age and years of driving experience
- The vehicle: its value, repair cost, safety and theft profile
- How the car is used (commuting, pleasure, business) and annual mileage
- Where the car is garaged, by ZIP code
- Whether you have had continuous prior insurance
- The coverages, limits and deductibles you choose
Credit information
Illinois' Use of Credit Information in Personal Insurance Act (215 ILCS 157) limits how insurers use credit. Credit can't be the only reason an insurer declines or non-renews you, and if credit information leads to an adverse decision you are entitled to a notice explaining it.
How we compare
Our agency does not use gender when comparing rates for you. We compare the same coverages across carriers so you see a fair, like-for-like price.
Keep it clean
Using a hand-held phone while driving is illegal in Illinois, and moving violations generally raise premiums at renewal.
Discounts to ask about
Discounts and how much they're worth vary by insurance company. When we quote, we check which ones you qualify for.
Multi-car
More than one vehicle on the same policy.
Multi-policy & homeowner
Owning a home or bundling other policies.
Paid in full
Paying the full term premium up front.
Paperless & e-signature
Signing and receiving documents electronically.
Continuous insurance
No gaps in your prior auto coverage.
Good student
Qualifying students under 25 with good grades.
Defensive driving
An approved accident-prevention course, generally for older drivers.
Anti-theft devices
Qualifying alarms, immobilizers or tracking devices.
Paying for your policy
Payment options depend on the insurance company. Most offer a choice between paying the full term up front or a down payment followed by installments. Installment plans may include a per-payment fee, so paying in full is often the lowest total cost.
Your proposal itemizes every charge before you sign, including the Police Training Fee and Theft Prevention Fee that appear on Illinois auto policies, and any agency fee.
Keep payments current. Illinois law limits the reasons an insurer can cancel a policy that has been in force more than 60 days, but nonpayment is one of them, and a lapse can affect your price for years.
About our quotes. Every quote is an estimate based on the information you give us. Your final price is set when the insurance company underwrites your application, which can include checking driving and claims records. Coverage is not in force until the carrier binds the policy and we confirm it to you in writing. Coverage descriptions on this page are general; your policy's actual terms, conditions and exclusions control.
See your coverage options side by side
Tell us about your drivers and vehicles. A licensed agent reviews every request.