Illinois Car Insurance Requirements 2026

Last Updated: October 24, 2026

Illinois minimum coverage is $25,000/$50,000/$20,000 (bodily injury per person, bodily injury per crash, property damage), but these limits are dangerously low and won’t cover serious injuries. Uninsured motorist (UM) coverage is included by law at your liability limits unless you reject the higher amount in writing, and underinsured motorist (UIM) coverage comes with it whenever your UM limit is above the state minimum. Parker & Parker handles what happens when the other driver is uninsured across central Illinois.

Illinois Car Insurance Requirements: What You Must Carry and Why It Matters

You’re driving legally in Illinois, right? You have insurance. But do you know what your insurance actually covers? Do you understand the numbers listed on your declaration page? And do you realize that even with insurance, you might not have enough coverage if you’re hit by someone else?

Many drivers carry only the minimum required insurance and don’t realize it’s a financial trap. When they’re injured by an at-fault driver, they discover the at-fault driver’s minimum coverage doesn’t come close to covering their medical bills, lost wages, and pain and suffering. Then comes the harsh lesson: minimum coverage is just that, the legal minimum, not necessarily adequate protection.

Understanding Illinois car insurance requirements helps you make informed decisions about coverage. It also matters profoundly if you’re injured in a car accident and need to navigate insurance claims.

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Illinois Minimum Liability Coverage: 25/50/20

625 ILCS 5/7-601 requires a liability insurance policy in amounts no less than the minimums in 625 ILCS 5/7-203. Section 7-203 requires not less than $25,000 because of bodily injury or death of one person, not less than $50,000 because of bodily injury or death of two or more people, and not less than $20,000 because of injury to or destruction of property of others, in any one crash. Those minimums are often written as 25/50/20.

These three numbers correspond to three different coverage limits:

$25,000: Bodily injury liability per person. This is the maximum the insurer will pay for any one injured person’s medical expenses and related damages from an accident the insured driver causes.
$50,000: Bodily injury liability per accident. This is the maximum the insurer will pay for all injuries combined in a single accident the insured driver causes.
$20,000: Property damage liability per accident. This covers damage to other people’s vehicles or property caused by the insured driver.

What 25/50/20 Actually Means in Practice

Here’s a concrete example: Suppose an at-fault driver with minimum 25/50/20 coverage hits your car. You have injuries. Medical treatment costs $45,000. You also have pain and suffering damages valued at another $50,000. Total damages: $95,000.

How much does their insurance pay? The per-person bodily injury limit is $25,000. The per-accident bodily injury limit is $50,000. You are one injured person, so the per-person limit controls: their insurer pays $25,000 and no more, however large your claim. The remaining $70,000 has to come from somewhere else, usually your own underinsured motorist coverage or the driver’s personal assets.

That’s the reality of minimum coverage. It’s often nowhere near enough.

Why the Numbers Matter Individually

The per-person limit ($25,000) matters when one person is severely injured. The per-accident limit ($50,000) matters when multiple people are injured in the same accident.

Example: A driver with 25/50/20 coverage causes a four-car pile-up, injuring five people total. Person A has $60,000 in damages, Person B has $35,000, and the others have smaller claims. No one person can collect more than $25,000, and all five together cannot collect more than $50,000. Person A gets at most $25,000, and the other four share what is left. Nobody is made whole.

This is why the property damage limit matters too. If you hit an expensive car or cause significant damage, $20,000 in property damage coverage is insufficient.

Underinsured Motorist (UIM) Coverage: Protection Beyond Their Liability Limits

Illinois law requires underinsured motorist (UIM) coverage whenever a policy’s uninsured motorist limit is above the state minimum, in the same amount as the UM coverage (215 ILCS 5/143a-2). If you bought liability limits above 25/50 and did not reject the higher UM amount in writing, you have UIM. It is one of the most important coverages on your policy.

UIM coverage protects you when the at-fault driver’s liability insurance is insufficient to cover your damages. It’s like a safety net that catches you when the at-fault driver’s insurer won’t pay the full amount you’re owed.

Here’s how it works: You carry $100,000 per person in UIM coverage. You’re injured by an at-fault driver who has minimum 25/50/20 coverage. Your damages total $150,000. Their insurer pays you its $25,000 per-person limit. Because that limit is lower than your $100,000 UIM limit, UIM applies. The most your own insurer pays is your UIM limit minus what you actually collected from the other driver’s insurer, here $100,000 minus $25,000, or up to $75,000, and never more than your actual damages.

Your total recovery from both sources is $100,000. The last $50,000 of your $150,000 in damages goes unrecovered unless the at-fault driver has personal assets. With only a minimum policy of your own, you would have stopped at $25,000.

This is particularly important in Illinois because many drivers have minimum coverage. If you’re hit by someone with 25/50/20 coverage and you have significant injuries, UIM is what your own policy pays when the other driver’s limit is lower than yours: up to your limit minus what you collected, and never more than your actual damages.

UIM vs. Uninsured Motorist (UM) Coverage

Uninsured motorist (UM) coverage is different. It covers you when the at-fault driver has no insurance at all. If you’re hit by an uninsured driver and you have UM coverage, your own insurance pays your damages.

In Illinois, many drivers are uninsured (despite the legal requirement). Every Illinois auto policy includes UM coverage, so the question is not whether you have it but how much. If you carry only the state minimum and you’re hit by an uninsured driver, your UM claim stops at $25,000, and beyond that you’re relying on a lawsuit against the at-fault driver personally (which is often fruitless because uninsured drivers typically don’t have assets).

Neither coverage is optional in Illinois. UM is included in every auto policy at your bodily injury liability limits unless you reject the higher amount in writing (215 ILCS 5/143a), and UIM is included at the same amount whenever your UM limit is above the state minimum. What you choose is the amount, and higher limits usually cost relatively little.

Personal Injury Protection (PIP): Not Required in Illinois

Some states require Personal Injury Protection (PIP) coverage, which covers your own medical expenses and lost wages regardless of who caused the accident. Illinois does not require PIP, making Illinois a “fault” state rather than a “no-fault” state. For more on uninsured and underinsured motorist coverage, see our practice overview.

In Illinois, if you’re injured, you rely on the at-fault driver’s liability insurance to pay your medical bills. If their coverage is insufficient, you’re left paying the difference yourself (unless you have adequate health insurance or UIM coverage).

This is another reason to carry higher liability coverage yourself if you can afford it. If you cause an accident, your liability insurance should be substantial enough to fully compensate the other person. And if you’re injured, you want the at-fault driver to have sufficient liability coverage.

The Gap Between Minimum Coverage and Actual Costs

Here’s the sobering reality: medical costs from serious accidents far exceed minimum insurance limits.

Consider a moderate car accident injury:

Emergency room visit: $3,000-$5,000
Imaging (CT scan, MRI): $1,500-$3,000
Physical therapy (12 sessions): $2,400-$4,800
Specialist consultation: $500-$1,500
Lost wages (if out of work 8 weeks): $6,000-$15,000
Pain and suffering (general multiplier of 3-5x medical costs): $30,000-$60,000+

Total: $44,000-$90,000. And that’s a “moderate” injury. For serious injuries (broken bones, spinal cord injury, traumatic brain injury), costs exceed $200,000-$500,000+ easily.

The at-fault driver’s minimum 25/50/20 coverage won’t touch these amounts. You’re shortchanged unless you have UIM coverage or the defendant has higher limits.

What Happens If an At-Fault Driver Has Only Minimum Coverage

If you’re injured by someone with minimum 25/50/20 coverage and your damages exceed those limits, you have limited options:

You recover only what the insurance covers: The insurer pays up to their limits, and that’s it. You don’t get additional compensation just because your damages are higher.
You sue the defendant personally: You can pursue a personal injury lawsuit against the at-fault driver individually. However, if the driver doesn’t have significant personal assets, even a judgment against them won’t result in payment.
You rely on your own UIM coverage: If your UIM limit is higher than the at-fault driver’s limit, your insurer pays up to your UIM limit minus what you collected from the other driver, and never more than your actual damages.
You negotiate a settlement: Sometimes, the at-fault driver’s insurer will agree to pay more than their stated limits to avoid a lawsuit, but this is not guaranteed.

This is why so many injured people end up with inadequate compensation. They trusted that the at-fault driver had sufficient coverage, and they were disappointed.

Can Two Policies Be Added Together?

215 ILCS 5/143a(1) says the uninsured-motorist limit for one vehicle may not be added to a similar limit on another vehicle, whether that coverage comes from the same insurer or another insurer, when the question is the total available for bodily injury or death in one crash.

215 ILCS 5/143a-2(5) says the underinsured-motorist limit is not increased because more than one motor vehicle is covered under the same policy. A policy may also say that if this coverage is available under more than one policy, the recovery may equal, and may not exceed, the higher of those limits. Two vehicles listed on the same policy at $100,000 each keep that $100,000 limit under subsection (5). Read the declarations page before treating a second vehicle or a household policy as extra coverage.

The Legal Requirement and Your Responsibilities

Illinois law requires that you maintain the minimum 25/50/20 liability coverage. If you’re caught driving without insurance, you face:

License suspension
Vehicle registration suspension
Fines ($500-$1,000+)
Criminal charges if the uninsured driving resulted in injury or property damage
Civil liability if you cause an accident and don’t have insurance to pay for damages

Beyond the legal requirement, it’s prudent financial sense to carry more than the minimum. Many experts recommend 100/300/100 coverage (or higher) as reasonable protection. The cost difference between minimum and moderate coverage is often minimal, sometimes just $20-$50 per month.

What to Do Now: Evaluating Your Coverage

Take these steps to ensure you’re adequately protected:

Review your policy: Pull out your insurance declaration page. Confirm you carry at least 25/50/20 liability coverage.
Check your UM/UIM limits: Every Illinois policy has uninsured motorist coverage. Confirm the amount matches your liability limits; if you signed a rejection of the higher amount, ask your agent to change it.
Consider higher limits: If you can afford it, consider increasing your liability limits to 100/300/100. The extra cost is usually minimal.
Document your coverage: Keep your insurance declaration page easily accessible in your vehicle.
Review annually: As your circumstances change (you buy a more expensive car, you earn more income), update your coverage accordingly.

Injured? Get the Help You Deserve.

The attorneys at Parker & Parker offer free, no-obligation consultations. Call 309-673-0069 or schedule online to discuss your case today.

The One Coverage I Tell Clients to Max Out

Underinsured-motorist (UIM) coverage on your own policy is the one coverage worth buying as much of as you can. It steps in when the at-fault driver’s liability limits are too low to cover your injuries, which happens constantly, because so many drivers carry only the state minimum. Most people do not realize they have UIM or how it works, and local agents rarely push it. When you are the one who is badly hurt by someone with a cheap policy, your own UIM is what protects you. Ask your agent for the highest UIM limit available; it is usually inexpensive relative to what it covers.

Frequently Asked Questions

Is it illegal to carry only the minimum insurance in Illinois?

No, it’s legal to carry only the minimum 25/50/20 coverage. However, it’s financially risky. If you cause a serious accident, your minimum coverage may not fully compensate the injured party, and you could face a personal liability judgment for the difference.

If I’m hit by someone with no insurance, can I sue them?

Yes, you can sue an uninsured driver personally. However, without assets, a judgment against them may be worthless. This is why having your own uninsured motorist (UM) coverage is crucial. It protects you from exactly this scenario.

Does my health insurance cover injuries from car accidents?

Your health insurance may cover medical treatment from a car accident, but it typically has a “subrogation” right, meaning the health insurer can seek reimbursement from the at-fault driver’s liability insurance once you recover. Additionally, health insurance doesn’t cover pain and suffering or lost wages, only medical treatment. You’ll still need the at-fault driver’s liability insurance or your own UIM coverage to cover non-medical damages.

Can an insurance company deny coverage because I was partially at fault?

Illinois follows a “comparative fault” rule. If you were partially at fault for an accident, your recovery is reduced by your percentage of fault, and if you were more than 50 percent at fault you recover nothing. However, the at-fault driver’s liability insurance still applies to their share of fault. Your own uninsured or underinsured motorist coverage works the same way: it turns on the other driver’s fault, and your own share reduces the amount.

What if the at-fault driver doesn’t have insurance?

If you’re injured by an uninsured driver, your own policy’s uninsured motorist (UM) coverage covers your damages up to its limit. Every Illinois auto policy has UM coverage; the question is how much. If you carry only the state minimum, the claim stops at $25,000, and beyond that you can sue the driver personally (though recovery may be difficult). This is a strong argument for carrying higher UM limits.

Do I need to increase my coverage limits if I have a teenage driver?

Many parents add teenage drivers to their policies. Teen drivers have higher accident rates, so some insurance experts recommend increasing coverage limits when adding a teen driver. Check with your insurance agent about whether your current limits are adequate for your household risk profile.

Being hit by an uninsured or underinsured driver can leave you feeling helpless. Our experienced Peoria personal injury lawyers know how to navigate these complex claims. We’ll work with both insurance companies, pursue every available source of recovery, and ensure you’re fairly compensated for your injuries.

Illinois Car Insurance Requirements: Minimums, UM/UIM, and What You Really Need