Insurance Requirements

Illinois operates under an at-fault insurance system, meaning the driver responsible for a crash is financially liable for resulting damages. Injured parties pursue compensation from the at-fault driver's insurer, file a lawsuit directly against the at-fault driver, or both.

Minimum required coverages

All drivers operating a vehicle in Illinois must carry the following minimum liability coverage:

• Bodily Injury Liability: $25,000 per person / $50,000 per accident
• Property Damage Liability: $20,000 per accident

At these levels, coverage can be exhausted quickly in serious crashes. Higher voluntary limits are advisable for most drivers.

Uninsured and underinsured motorist coverage (UM/UIM)

Illinois takes a distinctive approach to UM/UIM compared to many states in this series: uninsured motorist coverage is automatically packaged with every liability policy at the same minimum limits as bodily injury liability, rather than being an offer a driver can decline. Underinsured motorist coverage, by contrast, is only mandatory when a driver's UM limits exceed the state minimum. UM coverage applies when the at-fault driver has no insurance. UIM coverage applies when the at-fault driver's limits are insufficient to cover your full losses. Our article on what to do if you're in an accident with an uninsured driver covers how these claims work in practice.

Medical Payments (MedPay)

Illinois does not require Personal Injury Protection since it is an at-fault state. MedPay is available as an optional add-on covering medical expenses for you and your passengers regardless of fault, up to the policy limit. It pays without waiting for a fault determination and can cover deductibles and co-pays that health insurance does not address.

Rideshare coverage requirements

For drivers working for Uber, Lyft, or similar platforms, Illinois law establishes coverage requirements based on driver status:

• App on, no ride accepted: $50,000 per person / $100,000 per accident for bodily injury; $25,000 for property damage
• Ride accepted or passenger onboard: $1,000,000 in liability coverage, $1,000,000 in UM/UIM coverage, and comprehensive and collision coverage with deductibles up to $2,500

Rideshare drivers should confirm their personal auto policy does not exclude coverage during rideshare activity, since gaps between personal and platform coverage can leave drivers exposed depending on their status at the time of a crash.

Pending legislation: how insurance rates are set

A bill currently moving through the Illinois legislature, Senate Bill 1486, would meaningfully change how insurers price auto policies in the state. Illinois and Wyoming are currently the only two states with no formal insurance rate review process at all. SB 1486 would give the Illinois Department of Insurance authority to review new rate filings starting July 1, 2027, and to challenge rates found excessive, inadequate, or unfairly discriminatory. It would also require insurers to give at least 60 days' notice before any rate increase above 10 percent, require pricing to be based on driving record rather than age, credit score, or ZIP code, and require insurers to refund overpaid premiums if a rejected rate had already been collected.

The bill passed the Illinois House in March 2026 and is awaiting a Senate concurrence vote with no scheduled date as of this writing. It would not change how fault is determined or how claims are settled after a crash, but it would directly affect what Illinois drivers pay for coverage and how much advance notice they receive before a premium increase takes effect.

Penalties for non-compliance

llinois enforces insurance compliance primarily through ILIVS, an electronic verification system the Secretary of State uses to check registered vehicles for active coverage at least twice a year. If a vehicle fails verification and the owner cannot show proof of insurance within 30 days of a follow-up letter, the vehicle's license plates, not the driver's license, are suspended.

• First-time suspension: License plates are suspended until liability insurance is obtained and a $100 reinstatement fee is paid through ILIVS.COM
• Repeat offenders: A mandatory four-month suspension must be served before liability insurance and the same $100 fee can restore the plates
• Driving uninsured (citation or after an accident): Minimum fine of $500
• Driving on plates already suspended for a prior insurance violation: Minimum fine of $1,000

While a vehicle's plates are suspended, no one may operate that specific vehicle, though the owner may still legally drive a different, properly insured vehicle. An uninsured driver who causes a crash may also be personally liable for the full cost of the damages, since no insurer will step in on their behalf.

Fault Laws

Modified comparative negligence

Illinois follows a modified comparative negligence rule under 735 ILCS 5/2-1116. An injured party can recover damages only if their share of fault is less than 50 percent. A plaintiff found to bear 50 percent or more of the fault for a crash recovers nothing. A plaintiff found less than 50 percent at fault recovers their damages reduced proportionally by their own share of responsibility.

A concrete example: if you are found 20 percent at fault and your total damages are $50,000, you recover $40,000. If you are found 50 percent at fault for the same crash, you recover nothing.

This positions Illinois alongside the majority of states using a modified comparative fault framework. For a broader explanation of how these systems compare across states, see our article on comparative and contributory negligence.

Negligence per se and traffic violations

When a driver violates a traffic statute, Illinois courts may apply the doctrine of negligence per se, which allows the violation itself to establish the breach of duty element of negligence without requiring separate proof of unreasonable conduct. 

Wrong-way driving is a particularly strong example of this principle in practice: operating a vehicle against the flow of traffic on a one-way roadway or expressway ramp is a direct statutory violation, and when it results in a crash, that violation supports the fault analysis in the resulting civil claim without the injured party needing to separately establish that the wrong-way driver acted unreasonably. The same principle applies to other clear statutory violations, including running a red light, failing to yield, and driving under the influence.

How fault is determined

Fault is established through police reports, witness statements, dashcam and surveillance footage, traffic camera footage, physical evidence, medical records, and accident reconstruction analysis in contested cases. Insurance adjusters begin their own fault investigation promptly after any significant crash. Under Illinois's 50 percent bar, the margin between being found 40 percent and 50 percent at fault is the difference between a reduced recovery and no recovery at all, making early legal involvement and careful handling of recorded statements to insurers particularly important.

Multi-vehicle collisions

In accidents involving multiple drivers, fault is allocated among all parties based on the evidence developed during the claims process or, if necessary, court proceedings. Each party's ability to recover is reduced by their own individual percentage of fault. Illinois's dense expressway network, including the Kennedy, Dan Ryan, and Eisenhower corridors around Chicago, sees a meaningful share of chain-reaction, multi-vehicle crashes, where establishing an accurate fault allocation across several drivers often requires detailed reconstruction and traffic camera footage. See our article on truck accident claims involving multiple parties for how liability is distributed in complex commercial vehicle crashes.

Special considerations for passengers

Passengers injured in a car accident may file claims against any at-fault driver involved, whether it is the driver of their vehicle or another party. If the passenger's own actions, such as failing to wear a seatbelt, contributed to their injuries, their compensation may be adjusted accordingly under Illinois's modified comparative negligence rule.

Statute of Limitations

The statute of limitations sets the deadline for filing a lawsuit after a car accident. Missing the applicable deadline almost always bars the claim permanently.

Standard filing deadlines in Illinois

• Personal injury: 2 years from the date of the accident under 735 ILCS 5/13-202
• Property damage: 5 years from the date of the accident under 735 ILCS 5/13-205
• Wrongful death: 2 years from the date of death

Illinois applies a notably longer period to property damage claims than to personal injury claims arising from the same crash. The wrongful death period runs from the date of death, which may differ from the date of the accident if the injured person survived before dying from their injuries.

Claims against government entities

Illinois treats claims against local government entities and claims against the state differently, and each carries its own notice requirement in addition to its filing deadline.

Claims against local public entities, such as a city, county, park district, school district, or the CTA, are governed by the Illinois Local Governmental and Governmental Employees Tort Immunity Act. These claims generally must be filed within 1 year of the incident, and written notice to the entity is often required within 6 months.

Claims against the State of Illinois are heard exclusively in the Illinois Court of Claims. The lawsuit itself must generally be filed within 2 years, but written notice to the state must be submitted within 1 year of the incident, a separate and earlier deadline. Recovery is also subject to the damages cap discussed in the Compensation section below, with one important exception: that cap does not apply to crashes caused by a state employee's negligent operation of a state vehicle.

Given how much shorter these deadlines are compared to an ordinary claim, anyone whose crash may have involved a government vehicle, employee, or maintained roadway should seek legal guidance promptly. See our article on sovereign immunity and suing the government for the broader framework.

Tolling and exceptions

• Minors: The statute of limitations is tolled while the injured party is under 18, after which the standard two-year filing period begins. The one-year local government entity deadline is not necessarily tolled for minors in the same way, making prompt action critical when a local public entity is involved
• Discovery rule: Where injuries or damages were not immediately apparent, the limitations period may begin from the date the injury or damage was discovered or reasonably should have been discovered, rather than the date of the crash itself
• Defendant absence from Illinois: If the at-fault driver leaves Illinois before a lawsuit can be filed, the time of their absence may not count toward the standard two-year limit

MVA Procedures & Police Involvement

When to report an accident

In Illinois, you must report a motor vehicle accident to law enforcement and the Illinois Department of Transportation if any of the following conditions are met:

• Injury or death: If anyone involved in the crash is injured or killed
• Property damage: If the damage exceeds $1,500 when all drivers are insured, or $500 if any driver lacks insurance

Accidents meeting these criteria must be reported immediately by contacting 911. If the accident occurs within city limits, local law enforcement should be notified. Outside city limits, contact the county sheriff's office or the Illinois State Police. Failing to report a qualifying accident may result in fines or license suspension.

Filing accident reports

Motorists in Illinois are no longer required to complete the Illinois Motorist Report following a legislative change under Public Act 102-0560. Specific obligations remain in place regardless:

• Law enforcement reports: Officers who investigate a crash must submit their report to the Illinois Department of Transportation within 10 days using Form SR 1050
• Online crash reports: Certain crashes, such as single-vehicle property damage incidents on Illinois state or interstate highways, may be reported online through the Illinois State Police Crash Reporting Portal

How to access your accident report

Crash reports can be obtained for insurance claims or legal proceedings through the following methods:

• Online: Request a report through the ISP Crash Reports Portal. Eligibility criteria and fees apply
• In person: Visit local police departments or an ISP Desk Report location. Bring identification, accident details, and any required fees
• By mail: Submit a written request to the investigating law enforcement agency, including the names of involved parties, the accident date and location, and the report number if available

Crash reports are primary reference documents for insurers and attorneys handling a claim. If your report contains errors, addressing them promptly matters. See our article on what to do if your car accident police report is inaccurate for the steps involved.

Compensation: Types & Limits

Illinois does not cap economic or non-economic damages in personal injury or wrongful death cases against private defendants, allowing injured parties to recover the full extent of their documented losses. Claims against government entities operate under an entirely different framework, covered in detail below.

Economic damages

Economic damages cover measurable financial losses and are uncapped in Illinois vehicle accident cases against private defendants. They include:

• Medical expenses, past and future
• Lost income and reduced earning capacity
• Property damage and vehicle repair or replacement costs
• Out-of-pocket expenses directly related to the crash and recovery
• Future care costs where injuries require ongoing treatment

Non-economic damages

Non-economic damages address losses that cannot be reduced to a bill or receipt, including pain and suffering, loss of companionship, and reduced quality of life. Illinois imposes no statutory cap on non-economic damages in personal injury cases arising from vehicle accidents against a private defendant.

A spouse or domestic partner of a seriously injured person may bring a separate loss of consortium claim for the loss of companionship and support.

Wrongful death damages

When a crash results in death, surviving family members or the estate may pursue a wrongful death claim. Recoverable damages include the financial support the deceased would have provided, funeral and medical expenses, and the loss of companionship and guidance. No statutory cap applies to wrongful death damages against a private defendant.

Punitive damages

Punitive damages in Illinois are awarded to penalize defendants for egregious misconduct, such as intentional harm or gross negligence, rather than to compensate the injured party. Illinois imposes no explicit statutory cap on punitive damages, though courts scrutinize awards to ensure they remain proportionate to the underlying harm.

Claims against government entities

As discussed in the statute of limitations section above, claims against government entities in Illinois follow a fundamentally different structure than claims against private defendants, and the applicable framework depends on which level of government is involved.

Claims against the State of Illinois are heard exclusively in the Illinois Court of Claims and are subject to a damages cap under 705 ILCS 505/8(d). The base statutory cap is $2,000,000, adjusted annually by the Illinois Comptroller using the Consumer Price Index. The current adjusted cap for 2026 is $2,629,104, up from $2,560,483 in 2025. Critically, this cap does not apply to claims arising from the negligent operation of a motor vehicle by a state employee. A crash caused by an Illinois State Police trooper, an IDOT employee driving a state vehicle, or a state university employee behind the wheel of a university-owned car is not subject to this ceiling at all.

Claims against local public entities, such as a city, county, park district, or the CTA, are not governed by the Court of Claims cap. They are instead governed by the Illinois Local Governmental and Governmental Employees Tort Immunity Act, which imposes no dollar cap on damages but does provide broad immunities for many categories of government conduct, particularly discretionary decisions, that can significantly limit or eliminate recovery even when a claim is otherwise well-documented.

Punitive damages are generally unavailable against government entities in Illinois, consistent with the treatment of punitive damages against public defendants in most states.

Medical Coverage Considerations

Illinois's at-fault system means the at-fault driver's liability insurance is the primary source of coverage for medical expenses, though compensation is often delayed until fault is determined and the claim is resolved.

The at-fault driver's liability insurance

The at-fault driver's bodily injury liability policy is the primary source of coverage for your medical expenses. At Illinois's minimum of $25,000 per person, that coverage can be exhausted quickly in serious crashes. When it is, your own coverages become the next resource.

Medical Payments (MedPay)

MedPay pays first, ahead of your health insurance, covering you and your passengers regardless of fault. See the Insurance section above for the coverage scope and typical limits.

Health insurance

Once MedPay limits are exhausted, or if you do not carry it, health insurance covers ongoing accident-related treatment. Health insurance benefits from discounted rates already negotiated with healthcare providers and protects you from accruing interest on unpaid bills. However, Illinois law allows insurers to seek reimbursement from any settlement under subrogation rules, requiring repayment from your recovery.

Government assistance programs

For eligible individuals, Medicaid and Medicare may cover medical expenses, serving as the payer of last resort. Both programs require repayment from any settlement or judgment obtained. Illinois's Department of Healthcare and Family Services coordinates Medicaid recoveries to comply with federal requirements.

Uninsured and underinsured motorist coverage

If the at-fault driver lacks adequate insurance, UM/UIM coverage under your policy can step in to cover medical expenses and other damages up to your policy limits.

Medical liens and letters of protection

Illinois healthcare providers may place a lien on an injury settlement under the state's Health Care Services Lien Act, and total medical liens are capped by statute so that a meaningful share of any recovery reaches the injured party. Attorneys can also issue letters of protection, promising a provider payment from a future settlement. Because the statutory caps and notice rules are detailed and case-specific, anyone facing multiple liens on a serious injury settlement should have them reviewed individually rather than assuming a simple percentage applies.

Unique Local Factors

Weather and road conditions

Illinois experiences diverse seasonal weather that significantly impacts road safety. Winters bring snow, ice, and reduced visibility, particularly in northern regions and areas near Lake Michigan. Black ice and snowstorms increase accident risk on highways such as I-80 and I-90. Summers introduce heavy rain and thunderstorms, leading to slippery roads and flash flooding, while fall brings wet leaves that create hazardous surfaces even in otherwise clear conditions. Under Illinois's modified comparative negligence standard, a driver who fails to adjust speed and following distance to deteriorating weather conditions bears their own share of fault in any resulting crash, and a fault share of 50 percent or more bars recovery entirely.

Traffic hazards and wildlife

Urban areas, particularly Chicago, experience heavy traffic congestion during rush hours, elevating accident risk. Major highways, including I-290 and I-55, see substantial commuter traffic and seasonal construction delays, especially during the summer months. Illinois's dense expressway network, discussed in the fault section above, is prone to multi-vehicle chain-reaction crashes, where establishing fault across several drivers often requires detailed reconstruction and traffic camera footage.

Rural roads throughout central and southern Illinois present a different hazard: wildlife crossings, particularly deer, which are most active during dawn, dusk, and the fall mating season. A wildlife collision is generally treated as a single-vehicle incident for insurance purposes, making comprehensive coverage the relevant policy for vehicle repairs rather than liability coverage. Drivers should exercise caution in areas marked with wildlife crossing signs.

Tourism and events

Popular events and destinations, including the Chicago Marathon, Taste of Chicago, and festivals in smaller Illinois towns, increase traffic and accident risk during peak dates. Tourism to attractions such as Starved Rock State Park and Shawnee National Forest also brings drivers unfamiliar with local roads onto rural highways, particularly during summer and fall weekends. An out-of-state or unfamiliar driver's lack of local road knowledge does not reduce their legal duty of care under Illinois's modified comparative negligence standard; they are held to the same standard of reasonable conduct as any Illinois driver.

Local Resources & Contacts

Illinois Department of Transportation (IDOT)
Provides road condition updates, traffic reports, and resources for crash reporting.

• Website: idot.illinois.gov
• Phone: (217) 782-7820

Illinois State Police (ISP)
Handles accident reporting guidance, traffic enforcement, and crash report requests.

• Website: isp.illinois.gov
• Crash reports: isp.illinois.gov/CrashReports

Illinois Department of Insurance (IDOI)
Assists with auto insurance regulations and consumer protection inquiries, including complaints about coverage disputes and insurer conduct.

• Website: idoi.illinois.gov
• Phone: (866) 445-5364

Illinois Court of Claims
For personal injury claims against the State of Illinois, which must be filed in this court rather than a standard circuit court and are subject to the damages cap discussed in the Compensation section above.

• Website

For accident laws in other states, visit our state-specific legal information page.