Is Illinois a No-Fault State for Auto Insurance?

Illinois is an ‘at-fault’ car insurance state

Illinois is an “at-fault” car insurance state, also known as a tort state. Under an at-fault system, the insurance of the person responsible for the accident pays for the other driver’s injuries and property damage.

Minimum car insurance requirements in Illinois include $25,000 per person and $50,000 per accident of bodily injury liability coverage, and $20,000 per accident of property damage liability coverage.^[1] If any damages exceed the state’s minimum-coverage requirements, the other driver could sue the person at fault for the accident for the remaining amount.

For example, let’s say you hit a car worth $40,000 and total it. Your insurers would cover $20,000 worth of damages. The other driver could sue you to recoup the remaining $20,000.

Because Illinois is an at-fault state, you don’t need personal injury protection (PIP) coverage. Typically, you need to purchase PIP only in no-fault states.^[2]

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At-fault vs. no-fault car insurance

In an at-fault system, the driver who causes the accident is responsible for paying for damages and injuries to the other driver and their passengers.

In a no-fault state, you file a claim with your insurance company first, regardless of who causes the accident. PIP covers your medical expenses, rather than the at-fault driver’s insurance. Only 12 states and Puerto Rico use a no-fault system.

The following table shows some of the main differences between at-fault and no-fault car insurance.

Question	Illinois: At-Fault State	No-Fault State
Who pays first for injuries?	At-fault driver’s insurer	Your insurance
Need to determine fault?	Yes	Only for serious accidents
Is PIP required?	Not required	Required
Can you sue the other driver?	Yes	Only for accidents with severe injuries

How do accident claims work in Illinois?

If another driver causes an accident in Illinois, you can file a third-party claim directly with their insurance company. You may also choose to file a first-party claim with your own insurer.

The other driver’s insurer typically investigates the claim. It’ll offer you a settlement if it determines the other driver was legally responsible.^[3]

The at-fault driver’s property damage liability coverage pays for any property damage claims. The at-fault driver’s bodily injury liability coverage pays for injury claims. If you have health insurance or medical payments coverage (MedPay), you can use it while the insurer resolves the liability claim.

For example, let’s say you rear-end another vehicle at a stoplight in Aurora. The driver you hit would file a property damage claim with your insurer to repair the vehicle.

Now, say the driver you hit also experiences a neck injury. They would also file a bodily injury claim with your insurer to cover any medical bills. If they have MedPay, they can use it to cover their medical bills and then seek reimbursement through your insurance.

Remember, your insurer only covers up to your policy limits. If you have only minimum coverage in Illinois, the other parties could sue you to recover any remaining amount.

What are shared-fault rules in Illinois?

Illinois follows a modified “comparative negligence” law, which means that more than one person can be at fault in a car accident. If you’re 50% or less at fault for an accident, you usually can collect damages. Your percentage of fault determines the amount you receive.

For example, say you have to stop suddenly in Chicago traffic, and another driver rear-ends you. Your insurer decides that the other driver is 80% at fault, and you’re 20% at fault. In this case, you could collect damages because you were less than 50% at fault.

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Minimum car insurance requirements in Illinois

All vehicle owners in Illinois must have minimum liability coverage of 25/50/20. Drivers also need $25,000 per person and $50,000 per accident of uninsured motorist coverage.

That said, most drivers can benefit from higher limits. Minimum coverage may not be enough if you’re in a serious accident. You can also opt for full-coverage car insurance. Full coverage usually includes collision and comprehensive insurance to cover you and your vehicles.

The following table shows the minimum car insurance requirements in Illinois.

Coverage Type	Illinois Minimum Requirement	What It Covers
Bodily injury liability per person	$25,000	Covers injuries or death you cause to a pedestrian or a person in another car
Bodily injury liability per accident	$50,000	Covers costs related to injury or death
Property damage liability	$20,000	Pays for damage you cause to another person’s vehicle or property
Uninsured motorist	$25,000 per person / $50,000 per accident	Covers the cost of injuries to you if an uninsured driver hits you
Underinsured motorist	$25,000 per person / $50,000 per accident	Covers injuries if a driver without enough insurance hits you

What to do after a car accident in Illinois

If you get in a car accident in Illinois, follow these steps:

1. Check for injuries. If anyone sustained injuries, call 911 to get help.

2. Move the vehicles. While you’re waiting for help, make sure none of the cars involved are blocking the flow of traffic.

3. Call the police. In Illinois, you must report any accident involving injuries or $1,500 in total property damage. Failing to do so could mean up to three years in prison and $25,000 in fines.

4. Share your information. Illinois law requires all drivers involved in an accident to share their personal information, including their names, addresses, and vehicle registrations.

5. Document the accident. Take notes and photographs of the vehicles and any other useful information from the scene of the accident.

6. Contact your insurance company. File an insurance claim for damages. Share the details of your police report and any other information your insurance company needs.

Illinois car insurance FAQs