What Happens If You Drive Without Insurance in Chicago?

TL;DR: What Happens If You Drive Without Insurance in Chicago? Driving without insurance in Chicago can lead to fines starting at $500, registration and license suspensions, impoundment, higher future insurance costs, and even jail time if you cause an accident. Illinois tracks uninsured vehicles through an electronic system, so you don’t need to be pulled over to get caught. If an uninsured driver hits you, your uninsured motorist coverage can help—but only if you have it. In short, driving without insurance isn’t worth the risk.

It should go without saying that driving without insurance in Chicago is illegal. Still, it happens more often than you’d think. 

A 2023 study by the Insurance Research Council found that roughly 14% of drivers nationwide were uninsured in 2022, with Illinois coming in even higher at an estimated 16.3%. If you’re part of that number, here’s what you could face under Illinois law—and how Chicago takes action.

How much are the fines if you’re caught driving without insurance in Chicago?

Fines for driving without insurance in Chicago start at $500. That’s the minimum penalty for a first offense under state law and city ordinance—and it can climb to $1,000 depending on the court. 

In Illinois, first and second offenses are considered petty violations, carrying fines in the $500 to $1,000 range. Chicago follows suit, with its municipal code reflecting the same penalty bracket. Repeat offenses, however, will inevitably escalate the situation. A third violation is already classified as a business offense–a specific legal category used for certain non-criminal but serious violations, which carries a mandatory $1,000 fine.

It’s also important to note that these numbers only cover insurance violations. They don’t include court fees, processing costs, or any added penalties tied to other incidents. If your registration gets suspended, Illinois charges another $100 just to reinstate it. And if you were pulled over because of a crash? You could also face separate fines, citations, or even be held responsible for damages.

Does causing an accident without insurance lead to higher penalties? Yes. While driving uninsured is usually a traffic offense (not a criminal misdemeanor) and typically won’t land you in jail by itself, if you cause bodily harm while uninsured, Illinois elevates the offense. Driving uninsured and injuring someone can be charged as a Class A misdemeanor, which means prosecutors could seek criminal penalties: up to $2,500 in fines and even a jail term up to one year in the most serious cases. 

In practice, jail is uncommon for insurance violations alone, but the risk exists in severe accidents. Even apart from legal penalties, if you cause a crash without insurance, you’ll be personally liable for 100% of the damages, which could be financially devastating.

Will Illinois suspend your license or registration for driving without insurance?

Yes. Even a first offense results in a registration suspension until you show proof of insurance and pay a $100 fee. In Chicago, a citation leads to a conviction, triggering the suspension. A separate three-month driver’s license suspension also applies after the sentence, and reinstating it costs another $100.

Repeat offenses come with longer suspensions and steeper penalties. By the third violation, you’ll need to carry SR-22 insurance, a certificate your insurer files with the state to prove you’re covered, for three years. It’s typically more expensive and is monitored closely. Any lapse in the current policy and your driving privileges can be revoked again.

Since 2021, Illinois has used electronic verification to check if vehicles are insured. If you’re flagged twice, 30 days apart, without valid coverage, your registration will be suspended.

In Chicago, police vehicles have automatic license plate readers that scan tags in real time. If your registration is suspended, including for lack of insurance, your plate can trigger an alert on the spot, even if you’re not pulled over. This can cost you at least $1,000 in fines. That said, not every citation means you’re uninsured. You’ll still get a ticket if you had valid coverage during a traffic stop but didn’t have the card. But you can bring proof of insurance to court showing it was active at the time, and in most cases, the charge will be dismissed. It’s definitely a hassle, but more manageable than a full-blown violation.

Can the police impound your car for not having insurance in Illinois?

Driving without insurance means you’re operating your vehicle unlawfully, and under certain circumstances, the police in Illinois, including Chicago, can tow and impound your vehicle on the spot. In 2017, state law was updated to allow immediate impoundment if an uninsured driver has a prior insurance violation in the past 12 months. The vehicle would remain impounded until you provide proof of insurance and pay all towing and storage fees.

While the Police don’t usually tow for a first-time no-insurance ticket violation alone, you can expect to be cited. But you will likely be allowed to call someone with insurance to drive the car home. In more severe circumstances, for instance, you’re in an accident while uninsured or your car obstructs traffic, you should expect your vehicle to be impounded. 

Clearly, getting your car impounded will be costly and inconvenient. Chicago’s municipal impound fees can run a few hundred dollars. It’s not uncommon for violators to pay an administrative penalty, a towing fee, and a daily storage rate, on top of the fines for the insurance violation. Additionally, before the city releases your vehicle, you must prove it’s now insured. In some cases, Illinois may require an SR-22 insurance certificate (a sign of high-risk status) before you can get the car back on the road.

Could you go to jail for driving without insurance in Illinois?

Driving without insurance is classified as a petty offense, not a criminal misdemeanor, so technically, jail will be an unlikely consequence for a standard no-insurance offense in Illinois. Still, there are scenarios where jail becomes a possibility. 

If your uninsured vehicle was involved in an accident that led to injuries, Illinois law makes it a Class A misdemeanor to cause bodily harm to another person while driving uninsured. Class A misdemeanors are criminal offenses, the same level as a DUI or simple assault, and can be punishable by up to 364 days in county jail. So for example, if an uninsured driver runs a red light in Chicago and hits another car, injuring the occupants, that driver could be arrested and charged under this provision.

In addition to the standard fines discussed earlier, a judge could also impose jail time, especially if the injuries are severe or the driver has a history of violations. Fines in such cases can reach $2,500, in addition to any restitution or civil damages for the victims.

It’s also worth noting that if you present fraudulent insurance documents, say, a fake insurance card, when stopped by police, this will be a separate offense that can lead to criminal charges. This can result in a fine of up to $2,000 and even up to six months in jail in Illinois. 

So, while simply driving without coverage won’t send you to jail by itself, lying about it or hurting someone because of it can. The law does have teeth for the most dangerous situations, and a lapse in insurance combined with a bad accident could quickly escalate from a traffic matter to a criminal one.

Will a no-insurance violation make car insurance more expensive?

Absolutely. 

You’ll likely face higher auto insurance rates if caught driving uninsured. 

Insurers see any lapse in coverage or insurance-related violation as a risk. Even a single day without coverage can raise your rates, often by hundreds per year. In some cases, insurers may deny coverage entirely, leaving you to buy from high-risk or specialty providers.

Illinois offers an assigned-risk insurance plan for drivers who can’t get coverage elsewhere, but it comes with much higher premiums. The Secretary of State warns that some insurers won’t cover drivers caught without insurance, and it can take years of continuous coverage to return to standard rates.

Multiple offenses can trigger the SR-22 requirement, where your insurer must regularly report your coverage to the state. The state is notified if your policy lapses or you miss a payment. SR-22 filings are typically required for high-risk drivers—those with serious violations like DUIs or repeat uninsured offenses—and come with significantly higher premiums. Some insurers may raise rates sharply or refuse coverage altogether after such a lapse.

Beyond the formal penalties, the financial ripple effect will inevitably be significant. Even without getting caught, a lapse in coverage makes you ineligible for continuity discounts and often results in higher base rates. Insurers offer their best prices to drivers with a consistent coverage history, and once that’s broken, you’re flagged as a risk. Over time, the added cost in premiums and penalties can far exceed what you would’ve paid to stay insured in the first place. It’s a gamble that rarely pays off.

Finally, remember that if you were in an accident while uninsured, your insurance costs will skyrocket once you get coverage. Not only will you have the violation on your record, but if you were at fault in that accident, any new insurer will also rate you for the at-fault claim. It’s a double hit that could make insurance prohibitively expensive for a long time.

Can you drive someone else’s car without insurance in Illinois?

The short answer is: you don’t need insurance to drive someone else’s insured car. But if that car isn’t insured—or if you drive it in a way the policy doesn’t allow—you’re exposed to the same penalties as any uninsured driver.

This is actually a common point of confusion. In Illinois, insurance follows the car, not the person. So if you borrow a friend’s vehicle and they have valid coverage, you’re usually protected under their policy, as long as you have permission to drive it. You don’t need a policy in your own name to be legally on the road in that case.

However, you must be certain the car is insured. If your friend’s car isn’t insured, giving the “it’s not my car” excuse will not hold. Illinois law explicitly requires every vehicle on the road to be insured, penalizing the driver of an uninsured vehicle regardless of ownership. In other words, you can be ticketed and fined for driving someone else’s uninsured car just the same as if it were your own. 

It’s best to also check the policy details before borrowing a car. While standard liability coverage will extend to permissive drivers, some insurance policies have restrictions. For example, you might not be covered if your friend’s policy explicitly excludes unlisted drivers or if the car is covered under a commercial policy or a car-sharing arrangement. If an accident happens and the insurer refuses coverage because you weren’t an authorized driver, you and your friend could find yourselves in a financially tough spot. Even if the insurance does cover the accident, the claim could count against your friend’s insurance record and potentially raise their premiums. So it’s wise to ensure the owner’s active insurance policy has no special limitations on guest drivers.

What happens if an uninsured driver hits you in Chicago?

As a dense urban area, Chicago sees its share of crashes where the at-fault driver lacks coverage. If you’re the unlucky victim in such a case, here are your options: 

1. Your insurance can protect you (to a point). 

Illinois requires all auto policies to include coverage for injuries to uninsured motorists (UM). If an uninsured driver hits you, your insurer covers medical bills, lost wages, and related costs—up to your policy’s limits. The state minimum is $25,000 per person and $50,000 per accident, though many choose higher limits. UM coverage applies to hit-and-run cases when the at-fault driver isn’t identified.

However, UM doesn’t cover vehicle damage. You need collision coverage or an optional add-on called uninsured motorist property damage (UMPD). Illinois doesn’t require UMPD, and many basic policies don’t include it. Without either, you may have to pay out of pocket or take legal action to recover repair costs.

2. You can sue the uninsured driver, but collectability is problematic. 

You can sue an uninsured driver for damages like medical bills or car repairs. If your insurer pays under UM coverage, they may also go after the at-fault driver to recover their costs. However, most uninsured drivers have little money or assets, making it hard to collect, even with a court judgment. Some may even file for bankruptcy to avoid paying.

In Illinois, no statewide “uninsured driver compensation fund” automatically pays victims of uninsured drivers (some states have had funds like this, but Illinois relies on mandatory UM coverage instead). So your only recourse is through your insurance. Make sure you inform your insurer immediately if an uninsured or hit-and-run driver hits you so they can begin the claims process under your UM coverage. You’ll need to prove the other driver was uninsured. Usually, the police report notes this, and the state will confirm they had no active policy.

3. The uninsured driver will face penalties. 

While this might not help you financially, it’s worth noting that the at-fault driver, if uninsured, will be ticketed and penalized under the laws discussed earlier. 

In a crash, police almost always check all drivers for insurance. The uninsured motorist who hit you in Chicago will likely receive citations for driving without insurance (with $500+ fines), and their vehicle may be impounded at the scene. They’ll also face the license plate and driver’s license suspensions from the state afterwards. Knowing this doesn’t fix your car, but at least there are legal consequences for their actions.

4. Consider additional coverage for yourself. 

Given that many drivers are uninsured or underinsured, many experts recommend raising your uninsured motorist coverage limits beyond the bare minimum. You can often increase UM coverage (and add UMPD coverage) for a moderate extra premium, providing greater peace of mind. Suppose an uninsured driver hits you and you have $100,000 of UM coverage. In that case, even if you suffer serious injuries and incur high medical bills, you have a much better chance of full compensation through your policy. Another option is adding MedPay (medical payments) coverage to your policy to cover immediate medical expenses for you and your passengers, regardless of fault. MedPay can complement UM coverage, ensuring that ambulance or ER bills are covered without waiting for a settlement.