State of Illinois is Modernizing its Approach to Online Verification of Car Insurance for Drivers
Updated: Jul 15
In Illinois, motor vehicle drivers must comply with Illinois’s Mandatory Insurance Law, which requires drivers to maintain a liability insurance policy. The minimum requirements of insurance in Illinois state that owners and drivers must maintain liability insurance with limits for bodily injury and death of any one person of not less than $25,000 per person, and not less than $50,000 per occurrence. Illinois also requires liability coverage of not less than $20,000 for damage and/or destruction of personal property, such as a motor vehicle.
In 2020, the Secretary of State for Illinois began a program for electronic liability insurance verification for individual drivers. However, Illinois is ramping up their efforts to get compliance by Illinois drivers with the introduction of a new program that will begin on July 1, 2021. Illinois drivers will continue to verify proof of insurance electronically, however, the new program also requires Insurance Companies who write auto insurance in the State of Illinois to work with the Secretary of State’s office to confirm electronically that drivers and owners do in fact have automobile insurance. The program will follow a set of national standards that have been established by the Insurance Industry Committee on Motor Vehicle Administration and is being implemented with the goal of dramatically reducing uninsured Illinois motorists.
Once the new system goes live, the new Illinois Insurance Verification System (“ILIVS”), vehicle owners will be required to electronically verify insurance coverage as least twice a year at random intervals. If a vehicle owner fails to electronically verify insurance coverage, the Secretary of State’s office will send a written request to the owner giving them the opportunity to provide proof of insurance coverage prior to suspending their vehicle registration. Upon receipt of a letter, a vehicle owner must contact their insurance company or their insurance agent and provide them with a specific reference number from the Secretary of State. The insurance company or insurance agent is then responsible for confirming insurance coverage through the ILIVIS system that the vehicle owner does in fact have automobile insurance. Vehicle owners who fail to prove insurance will have their license plate suspended and face a $100 reinstatement fee.
While the new ILIVS will certainly help in reducing the number of uninsured motorists in Illinois, it will not eliminate it all together. Some Illinois drivers will always take a chance, and allow their insurance coverage to expire or lapse. The Uninsured Motorist Coverage, or “UM Coverage”, section of your automobile insurance policy can be tricky to read and understand on your own. Insurance Companies more often than not include conditions and “hoops” for you to jump through in order to even make a claim for injuries and property damage through your UM Coverage. Simply carrying the proverbial “full coverage” does not always mean that you are “fully” covered in the event that you are struck by an uninsured motorist.