Insurance in Illinois: A Guide to Auto & Home Coverage
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Insurance is an excellent financial tool for protecting your family and your finances. If you live in Illinois, you have access to many types of insurance, including car insurance, home insurance, life insurance, and more. Details matter when you’re shopping for each of these types of coverage.
Our guide to Illinois insurance below highlights some of the most important details of different policy types. Check out the information and resources, and then use EverQuote to find cheap car insurance in Illinois.
Types of Insurance Coverage Available in Illinois
Illinois citizens can benefit from a variety of insurance types, ranging from car insurance to life insurance and more. Some may be required by law, while others serve as financial tools to protect you, your loved ones, and your assets. Learn about some of the IL insurance options below.
Auto Insurance in Illinois
Illinois requires that all drivers carry liability coverage to pay for injuries and damages they may cause to others. Illinois car insurance requirements mandate that drivers must have bodily injury liability and property damage liability coverage.
In addition to liability insurance, Illinois drivers must also carry uninsured/underinsured motorist bodily injury coverage. Uninsured motorist coverage will pay for your injuries if you are the victim of a hit-and-run or an at-fault driver who doesn’t carry insurance. Underinsured motorist coverage provides coverage for any injury-related expenses above the at-fault driver’s coverage limits.
Illinois uninsured motorist bodily injury coverage automatically includes the same coverage limits as your liability policy. However, it does not include coverage for your damaged property.
Optional car insurance in Illinois includes coverage for your vehicle, medical payments, gap coverage, and more. Collision coverage will cover damages to your vehicle after an accident, regardless of who is at fault. Comprehensive coverage will provide coverage for damages after a non-accident incident, such as hitting an animal, theft, or flood. Lenders may require these higher levels of coverage.
Home Insurance in Illinois
Home insurance is recommended for most homeowners and may be required by mortgage lenders in many circumstances. A standard homeowners insurance policy will provide coverage for damage to your home, personal liability, and additional living expenses if you need to stay somewhere else after a covered insurance claim.
Illinois homes can be at risk of damage from several different types of severe weather. Tornadoes, thunderstorms, snowstorms, and flooding can all occur in Illinois. Some of these are covered by a typical homeowners policy, such as hail, wind, and hurricanes.
Floods are not usually covered, so you may consider purchasing additional flood coverage. According to the Illinois Department of Natural Resources (IDNR), floods account for over 90% of declared disasters. Many citizens are located close to rivers, lakes, and streams. The IDNR recommends that high-risk homeowners purchase flood insurance through FEMA's National Flood Insurance Program (NFIP).
Due to an increase in extreme weather across Illinois, many insurance providers have begun to deny coverage to Illinois homeowners. Therefore, the state has introduced the Illinois FAIR Plan. You may qualify if you have three unsuccessful attempts to get coverage.
Average Cost of Insurance in Illinois
The average insurance premium for minimum coverage auto insurance in Illinois is $629 per year. Full coverage car insurance might cost around $1,903 per year. However, the cost of your insurance will depend on a variety of factors.
Factors Affecting Insurance Rates in Illinois
Car insurance rates depend on several factors, including your age and gender, location, driving history, vehicle information, insurance discounts, and more. Each auto insurance company has its own underwriting processes, but higher-risk areas like Chicago and other urban areas will likely cost more for insurance.
Illinois weather risks, like tornadoes and winter storms, can also impact insurance rates, particularly home and car insurance which consider many external factors.
Unfortunately, homeowners insurance rates in Illinois have risen over the years as extreme weather events have become more frequent. Many consumers have submitted complaints with the state because of claims that are unfairly denied.
Useful Illinois Insurance Resources
The best way to find the coverage that works for you is to do plenty of research. The Illinois Department of Insurance has a large online library of consumer information that makes learning about insurance in IL convenient.
It’s also important to make sure you’re getting the best rates possible. EverQuote’s free online quote comparison tool allows you to compare plans and rates from several Illinois car insurance companies in one place. Get started today by entering your ZIP code.