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Everything You Need to Know About the Mandatory Electronic Car Insurance Verification Law in Illinois

Illinois Mandatory Insurance Verification

If you know someone that started a car insurance policy with a down payment of one month to obtain a 6 month or 12-month insurance card, and cancelled that policy for non-payment in the first month, this article will be of interest to you. Several states have been moving towards technology to prevent drivers from using fraudulent insurance cards. Illinois is now one of those states. The State of Illinois did not include any funding to alert the public of the electronic insurance verification law, as the view is that it has been mandatory since 1990 to drive insured. Please feel free to forward this email to alert as many people as possible.

The Illinois Secretary of State has contracted a third-party vendor to monitor all registered vehicles in IL, for car insurance. All car insurance companies are now forced to comply with the electronic car insurance verification law (IL HB 2610), which went into effect 01-01-2019. All car insurance companies are forced to send in daily reports to the Illinois Secretary of State on policy information. Including which vehicles have insurance and which do not. The vendor will match the information to vehicle owners/drivers, VIN numbers, and license plates for the Illinois Secretary of State database instantly.

The Illinois Secretary of State will randomly check all vehicles at least twice per year using the electronic insurance verification system. The registered owner will receive a letter requesting proof of insurance or that the vehicle was inoperable during a lapse in car insurance coverage. This 30 day request will be triggered for having even just one day lapse in coverage. The registered owner will only get 30 days to provide the Illinois Secretary of State with the information. Failure to provide the proof will result in an electronic citation. Registered vehicle owners should make sure that the address on file is correct on driver’s licenses and vehicle registration, because failing to respond to a letter will result in suspensions. Having an incorrect address on file is not an acceptable excuse for not being notified of the violations by mail. We interpret the electronic insurance verification law to be that if a registered vehicle owner has multiple vehicles that are uninsured, the owner risks receiving multiple violations. We will update our customers when we start to see these violations come into our offices.

Due to real time information being received from car insurance companies, when a car insurance policy cancels at midnight, the license plate information will also be updated at midnight. A Police officer could run a license plate at 12:01am, on a vehicle that had just lapsed at midnight, and pull the vehicle over for the car insurance violation. Re-instatements of policies are also reported at midnight. Although an individual may avoid being physically pulled over during a lapse in coverage, does not mean they evaded a ticket. The fall back system is the Illinois Secretary of State will be checking vehicles for lapses in coverage twice per year. In addition, police will also be able to check car insurance during traffic accidents. Knowingly handing a police officer a fraudulent card could compound issues. It is best to state that the vehicle is not insured than to pass off an insurance card as valid when it is in fact cancelled or lapsed, we recommend to visit sr22 insurance chicago to learn more about your car insurance options. 

It is important to not let a car insurance policy cancel in order to avoid the fines, fees, and suspensions. Making a payment on a lapsed or cancelled policy will not change the status of a suspension for car insurance until midnight of the day the insurance company reinstates the policy. Also purchasing insurance on an uninsured vehicle will not update the status until midnight when the insurance policy goes into effect. The electronic insurance verification system of Illinois is a computer system that will be over seeing all vehicles at all times. Other states utilizing similar technology have made millions of dollars in electronic revenue from catching all uninsured drivers.

Courts will have access to the Illinois Secretary of State Car insurance database. This is to verify if cars had insurance during accidents or at the time a citation was issued for driving uninsured. Theoretically, drivers could go to court with speeding tickets and walk out with driving uninsured vehicle tickets, as well.

Illinois department of Revenue also has access to collect unpaid traffic fines from tax returns.

Minimum $500 fine for driving uninsured.

Minimum $1,000 fine for driving a vehicle while on a suspension.

Impoundment fees range from $300-$1,000 depending on the city in Illinois. In addition to this fee, a per diem fee can also be assessed. Proof of car insurance will be needed to release the vehicle.

Rates could increase with the increased demand of insurance. Lock In a 12-month policy to secure a rate as soon as possible. If you already have a policy, just remember to make timely payments to prevent gaps in coverage.

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Bill Status of HB-2610

Synopsis As Introduced
Amends the Illinois Vehicle Code. Provides that the Secretary of State may implement an electronic motor vehicle liability insurance policy verification program to verify insurance coverage of motor vehicles required to be operated with liability insurance under the Code. Provides for information that an insurance company authorized to sell motor vehicle liability insurance in this State shall make available upon request to the Secretary. Provides that if the Secretary implements the program, he or she shall verify insurance coverage at least twice per calendar year and, if unable to verify coverage, shall provide the vehicle owner written notice allowing the owner 30 calendar days to provide proof of insurance on the date of the attempted verification or proof that the vehicle is inoperable. If the vehicle owner provides proof of insurance, the Secretary may verify the proof with the vehicle owner’s insurance company. If the vehicle owner fails to respond to the notice or is unable to provide proof of coverage or proof that the vehicle is inoperable, the Secretary shall suspend the vehicle’s registration. Amends the Freedom of Information Act. Makes conforming changes. Amends the Illinois Motor Vehicle Theft Prevention Act. Changes the title of the Act to the Illinois Motor Vehicle Theft Prevention and Insurance Verification Act. Provides that the Secretary of State shall appoint members of the Council (rather than the Governor) and the Director of the Department of State Police shall be the Chairman of the Council. Provides that the Council shall provide funding to the Secretary for the creation, implementation, and maintenance of an electronic motor vehicle liability insurance policy verification program. Makes conforming changes. Amends the State Finance Act to make conforming changes.