Insurance in Illinois

Coverage Requirements in Illinois

Illinois requires 25/50/20 auto liability ($25,000 per person bodily injury, $50,000 per accident, $20,000 property damage) PLUS mandatory UM bodily injury at 25/50 statewide. Illinois follows modified comparative fault at a 51% bar — a driver 51% or more at fault recovers nothing. Roughly 13% of Illinois drivers are uninsured; VKOVR recommends stacking UM/UIM to 100/300 to match liability. Standard homeowners insurance in Illinois covers wind, hail, and tornado damage, but excludes rising-water flood and sewer/drain backup. Wind/hail deductibles of 1–2% of dwelling value are increasingly common. Chicago River backups, urban flash flooding, and Mississippi/Illinois river exposure require separate NFIP or private flood plus water-backup endorsements. Coverage A audits are critical after 2020–2024 rebuild-cost inflation. Illinois employers with one or more employees must carry workers' compensation insurance through a licensed carrier or approved self-insurance. The Illinois Workers' Compensation Commission enforces strict penalties. Illinois also has a state estate tax with $4M exemption and NO spousal portability — a significant trap for Chicago-metro families with real estate and retirement assets approaching $4M+; ILIT structures can provide estate-tax liquidity.