The national guide explains the personal auto policy: liability, medical payments, uninsured motorists, physical damage, and duties after a loss. Illinois is an at-fault (tort) state with no PIP requirement. Illinois auto questions focus on four areas:

• mandatory insurance and financial responsibility (Illinois Vehicle Code, 625 ILCS 5/7);
• uninsured and underinsured motorist coverage (215 ILCS 5/143a, 143a-2);
• cancellation and nonrenewal (215 ILCS 5/143.13 and following);
• the Department's claim rules.

Fault and minimum limits

• Comparative negligence: a party less than 50% at fault recovers damages reduced by their share. A party 50% or more at fault recovers nothing (735 ILCS 5/2-1116).
• Mandatory insurance: no vehicle may be operated or registered without a liability policy (625 ILCS 5/7-601). Government-owned vehicles are among the exemptions.
• Minimum limits: $25,000 per person / $50,000 per crash for bodily injury and $20,000 for property damage, or 25/50/20 (625 ILCS 5/7-203).
• Self-insurance: an owner with more than 25 registered vehicles may get a certificate of self-insurance (625 ILCS 5/7-502).
• Proof of insurance: carried in the vehicle, on paper or as an electronic image on a phone (625 ILCS 5/7-602). Police may not stop a vehicle solely to check insurance (625 ILCS 5/7-608).
• Penalties:
  • Driving uninsured: a fine over $500 up to $1,000, plus a 3-month suspension of driving privileges (625 ILCS 5/3-707). A third conviction brings a $1,000 fine.
  • Registration suspensions end with proof of insurance and a $100 reinstatement fee (625 ILCS 5/7-606).
  • False proof of insurance: a 6-month registration suspension (625 ILCS 5/7-607).
  • Counterfeit insurance cards: a Class 4 felony (625 ILCS 5/7-603).
• Owner's policy: covers the named insured and anyone using the vehicle with express or implied permission, within the continental U.S. and Canada (625 ILCS 5/7-317).

Proof of financial responsibility

• How it is filed: an authorized insurer files an electronic certificate with the Secretary of State (625 ILCS 5/7-315). Illinois law uses that term; "SR-22" is only the industry nickname.
• Cancellation: a certified policy can't be cancelled without 15 days' prior electronic notice to the Secretary of State.
• Keeping registrations after revocation: proof must be kept for 3 years (625 ILCS 5/7-304).

Uninsured and underinsured motorist coverage

• UM is mandatory at 25/50 and can't be rejected at that level (215 ILCS 5/143a(1)).
• UM above the minimum: UM must equal the insured's BI liability limits unless the insured asks in writing for lower limits or rejects the excess. The choice binds all insureds and later renewals (215 ILCS 5/143a-2).
• UIM: whenever UM exceeds the 25/50 minimum, UIM must be included at the same limit (215 ILCS 5/143a-2(4)). UIM pays its limit minus what is recovered from the at-fault driver. Example: $100,000 − $25,000 = $75,000.
• No stacking: UM limits on different vehicles can't be added together for one crash.
• Arbitration: UM disputes go to arbitration. The award is binding up to $75,000 per person / $150,000 per crash, or the policy limits if lower.
• Uninsured motor vehicle includes a vehicle whose insurer is insolvent (215 ILCS 5/143a(3)).
• UM property damage (UMPD):
  • It must be made available, with a deductible of no more than $250.
  • Nothing is paid if the uninsured driver can't be identified.
  • Not paying the UMPD premium is conclusive proof the insured declined it (215 ILCS 5/143a(2)).

Cancellation and nonrenewal

• Scope: the cancellation rules apply to private passenger and similar 4-wheel vehicles not used for business or livery. They do not apply to Illinois Automobile Insurance Plan policies (215 ILCS 5/143.13(a)). Policies shorter than six months are treated as six-month terms.
• First 60 days: an insurer may cancel for almost any reason.
• After 60 days, cancellation is limited to listed grounds (215 ILCS 5/143.19), such as:
  • nonpayment;
  • misrepresentation, including failing to disclose crashes and violations from the past 36 months;
  • a household driver's license suspended or revoked in the past 12 months;
  • three or more traffic violations in 12 months;
  • carrying passengers for hire. A car pool is not "for hire."
• Notices (215 ILCS 5/143.14, 143.15):
  • Mailed, with proof of mailing (proof of receipt isn't required).
  • Copies go to the agent and any lienholder.
  • The notice gives a specific explanation of the reasons.
  • Nonpayment notices go out at least 10 days ahead.
• Five-year rule: a policy in force five years or more can be nonrenewed only for listed reasons, unless notice is mailed at least 60 days ahead (215 ILCS 5/143.19.1).
• Banned nonrenewal reasons: age, sex, race, color, creed, ancestry, occupation, marital status, employer or physical disability (215 ILCS 5/143.24). Insurers also can't refuse or surcharge drivers solely because of a physical disability (215 ILCS 5/143.24a).
• Residual market notice: cancellation (other than for nonpayment) and nonrenewal notices must mention possible eligibility for the Illinois Automobile Insurance Plan (215 ILCS 5/143.20).
• Hearings: an insured may request a hearing before the Director at least 20 days before the effective date, except for nonpayment (215 ILCS 5/143.23).
• Other banned reasons to refuse, cancel or surcharge:
  • a prior refusal or cancellation by another insurer (215 ILCS 5/143.10);
  • an agent located far from the insured (215 ILCS 5/143.26);
  • the identity of the prior carrier alone (215 ILCS 5/155.27).
• No grace period: the Department notes that no Illinois law requires an auto grace period.

Required coverages, discounts and other rules

• Child restraints: every auto policy covers replacing a child restraint system in use during a covered crash (215 ILCS 5/143.32).
• Mature driver discount: drivers over 55 who complete an approved crash prevention course get a reduction for 3 years (215 ILCS 5/143.29).
• Anti-theft discount: qualifying anti-theft devices earn at least 5% off comprehensive (50 Ill. Adm. Code 932.40).
• Garaging address: applicants must give the address where they live. A knowing false address is a business offense (215 ILCS 5/155.40).
• Physical damage coverage isn't required by law, though a lender may require it.

Claim rules (50 Ill. Adm. Code 919.80)

• Total losses: total-loss information goes to the insured within 7 days of the decision.
• Unresolved claims: a written explanation is due when a collision claim is unresolved after 40 days, or a property damage liability claim after 60 days.
• Salvage: after a total loss the insurer becomes the owner and applies for a salvage certificate within 20 days. The owner may keep a vehicle that is 9 or more model years old, or one with hail-only damage, by agreement (625 ILCS 5/3-117.1).

Common exam traps

• Illinois minimums are 25/50/20. Property damage is $20,000.
• UM is mandatory at 25/50 and can't be rejected. Only limits above the minimum can be declined, in writing.
• UIM is required only when UM exceeds the minimum. It is reduced by what is recovered from the at-fault driver.
• To recover in Illinois, the claimant must be less than 50% at fault.
• After 60 days, a license suspension within 12 months is a valid ground to cancel. A car pool is not for hire.