Illinois Minimum Auto Insurance: Why It Falls Short

Last Updated: October 24, 2026

625 ILCS 5/7-203 sets minimum liability amounts of $25,000 for bodily injury or death of one person, $50,000 for two or more people, and $20,000 for property damage, in one crash. 215 ILCS 5/143a(1) requires bodily-injury uninsured coverage at those limits. Section 143a-2(2) lets a named insured reject, in writing, only the uninsured coverage above those limits.

What Illinois Requires

625 ILCS 5/7-203 sets those three amounts for a liability policy or bond: not less than $25,000 because of bodily injury or death of one person, $50,000 because of bodily injury or death of two or more people, and $20,000 because of injury to or destruction of property of others, in one crash.

The $25,000 figure is the per-person liability minimum. It is not a measure of medical bills.

The Gap Between Minimum Coverage and Real Costs

Section 143a(1) requires bodily-injury coverage for an insured person who is legally entitled to recover from the owner or operator of an uninsured or hit-and-run motor vehicle, at the section 7-203 limits.

Section 143a-2(4) calls a vehicle underinsured when the sum of the applicable bodily-injury liability limits is less than the underinsured limits provided to the insured. The underinsured insurer’s limit of liability is its coverage limit, less the amounts actually recovered on that vehicle.

How UM/UIM Coverage Fills the Gap

Uninsured coverage follows section 143a(1). Underinsured coverage follows the comparison in section 143a-2(4), not a comparison with the size of the loss.

Section 143a-2(1) includes uninsured coverage equal to the bodily-injury liability limits unless the named insured rejects the additional amount in writing under section 143a-2(2). That rejection covers only coverage above the section 7-203 limits, and it binds every person insured under the policy.

If the underinsured limit is $100,000 and the amount actually recovered on the underinsured vehicle is $25,000, the insurer’s limit of liability is $75,000. That figure is the statutory setoff. It is not a promise that the unpaid bills equal $75,000.

Why You Should Carry More Than the Minimum

Carrying higher liability limits protects your own assets if you cause an accident. Carrying adequate UM/UIM coverage protects you when someone else causes one. Both are important, and both are relatively inexpensive compared to the protection they provide.

A written rejection under section 143a-2(2) can leave uninsured coverage at the section 7-203 limits instead of the bodily-injury liability limits.

Review Your Coverage Today

Pull out your auto insurance declarations page and check your UM/UIM limits. If they match the state minimum, consider increasing them. If you have been injured by an uninsured or underinsured driver and need help understanding your coverage options, the car accident attorneys at Parker & Parker can review your policy and help you identify available coverage and damages supported by the evidence. Contact us for a free case review.

Injured? Get a Free Case Review.

Robert Parker handles plaintiff-side injury cases in Peoria and across Central Illinois. Call 309-673-0069 or contact us online for a free, no-obligation consultation.

Frequently Asked Questions

What is the minimum auto insurance required in Illinois?

Section 7-203 sets $25,000 for one person, $50,000 for two or more people, and $20,000 for property damage, in one crash.

Why is Illinois minimum auto insurance not enough?

The $25,000 amount is the per-person liability minimum in section 7-203. It is not a cap on medical bills, and it is not the test for underinsured coverage.

How does UM/UIM coverage protect me?

Uninsured coverage applies when the insured is legally entitled to recover from an uninsured or hit-and-run motor vehicle. Underinsured coverage applies when the applicable liability limits are less than the insured’s underinsured limit, and the available amount is that limit less the amounts actually recovered.

Dealing with injuries after a car crash can feel overwhelming. Peoria personal injury lawyer Robert Parker can guide you through every step of the legal process.

Need a lawyer? This article is part of our Peoria Car Accident Lawyer practice area. Call Parker & Parker at 309-673-0069 for a free consultation.

Illinois Minimum Auto Insurance Requirements and Why They Are Not Enough