Besides having a valid driver's license and registration, you must have a current auto liability insurance policy that meets the state's requirements in order to legally drive your vehicle within Illinois. Why? Because driving is risky, and if you cause an accident, you must be able to prove you're financially responsible enough to cover the costs of the accident.

Ways to Establish Financial Responsibility

Unlike other states that accept bonds or cash deposits from drivers instead of a liability policy, in Illinois you must prove your financial responsibility by having liability insurance.

Illinois Liability Insurance Requirements for Private Passenger Vehicles

To meet your financial obligation to the state, you need to carry at least the following amount of vehicle insurance protection:

• $20,000 of coverage for an injury or death to one person in a single accident.

• $40,000 of coverage for injuries or deaths to more than one person in a single accident.

• $15,000 property damage coverage.

You must have this level of coverage if you drive any vehicle that requires a license plate.

Most insurance experts recommend you have much more insurance coverage than this, and there are also other types of coverage that help protect your assets. Accidents―and the lawsuits that sometimes follow―can be financially destructive if you don't have adequate protection. See our liability insurance article for more information on this subject, or talk to your insurance agent or company.

Of course, the cost of this protection is often an issue, especially for younger drivers. However, it's easy to comparison shop online to find the best rates and coverage. And, almost all insurance providers have toll-free numbers, and their customer service representatives will welcome your inquiries.

Should you have difficulty finding a provider willing to accept you as a customer, look into the Illinois Automobile Insurance Plan, or call the state insurance department at (217) 782-4515.

Proof of Insurance and Financial Responsibility

The state won't automatically know if you have the proper insurance coverage; you'll have to provide the proof yourself. And, you must do this by showing the insurance card issued to you by your carrier.

Be sure to have the card with you whenever you're driving. If you're in an accident or stopped for a traffic violation, you'll need to produce evidence that you're presently insured.

The Secretary of State's office also checks on drivers to see if they're in compliance with the insurance requirement by randomly sending out letters asking for verification of insurance status. If you receive one of these letters, just follow the instructions provided to comply with the state's request within 30 days of the verification date.

Penalties for Failure to Maintain Financial Responsibility

So, what happens if you have no proof of insurance simply because you don't have auto insurance?

Your license plates will be suspended, meaning that neither you or anyone else can drive your vehicle. However, you are permitted to drive other vehicles.

The suspension remains until you show the state that you now meet the minimum insurance requirements, and pay the $100 reinstatement fee. However, if you've been guilty of driving without insurance before, your plates will be suspended for at least four months.

Additionally, if you were cited for not having the proper insurance after an accident or traffic stop, you'll have to pay a minimum fine of $500.