Illinois Insurance Questions Answered

Popular Questions about Illinois Car Insurance

The good news is Illinois drivers pay less than most other drivers around the nation. 

The average cost for car insurance nationwide is $1,311. In Illinois, it's only $1,079. You'll get the best rates if you compare quotes from multiple companies before you choose a policy.

Driving on the busy roads in Illinois can be dangerous. Accidents can happen in the blink of an eye. If you find yourself in an accident, here are some ways that your car insurance will help...

  • Fix Your Car - Not Required. We officially call this “Comprehensive & Collision Coverage.”
  • Fix Someone Else’s Car - Required/Min. $20,000. We officially call this “Property Damage Liability.”
  • Pay Your Medical Bills - Not Required. We officially call this “Personal Injury Protection” Or “Pip.”
  • Pay Someone Else’s Med Bills - Required/Min. $50,000 Per Person. We officially call this “Bodily Injury Liability.”

Illinois drivers are required to have car insurance, and most states have similar laws in place. This is meant to ensure that drivers are prepared if they cause an accident and have a way to pay for the resultant damage and medical bills. 

The driver who caused the accident is responsible for covering the cost of damages. 

Even though drivers are supposed to have insurance, some Illinois drivers get behind the wheel without coverage. This can lead to major problems if they cause an accident.

Uninsured motorist coverage gives you an added layer of protection, stepping in to pay for damage and medical bills if you are hit by a driver who isn't insured and cannot afford to cover the cost of your damages.

Popular Questions about Illinois Home Insurance

The average American homeowner pays $1,173 per year for home insurance, but in Illinois, the average annual premium is $1,033. Even though insurance is less expensive for homes in Illinois than it is throughout most of the country, that does not mean you don’t have room for savings.  A local independent insurance agent can help you find the right policy at an affordable rate.

Your home insurance gives you a backup plan in case a catastrophe strikes in your neighborhood. Whether it's a fire, heavy winds or a burglary, you're covered if you have a suitable Illinois homeowners insurance policy.

Pays for repairs to your home and your belongings

  • Example: A tree falls on your house, and rain ruins your 60" Samsung TV.

Pays for someone else's injuries or property damage when it's your fault

  • Example: Your kid is playing baseball and accidentally smacks the ball through your neighbor's window.

Pays for temporary living expenses when your home is damaged

  • Example: You need a hotel while your house's roof is being repaired due to a fallen tree.

We can’t be 100% certain, but in 2016, insurance companies spent more than $1.96 billion on home insurance claims in Illinois. That's a lot of unfortunate events happening to Illinois homeowners.

Insurance carriers calculate the cost of a home insurance policy by asking "how likely is it that something bad will happen?" The more likely it is that something bad will happen, the more expensive the home insurance policy will be, and vice versa. We call these potential disasters "risk." Let’s take a look at how risky Illinois is compared to the rest of the US.


Even though the crime rate in Illinois is lower than the national average, homeowners still have to be aware of the risk. 

  • Average number of burglaries per 1,000 homes in IL: 3.75
  • Average number of burglaries per 1,000 homes in the U.S.: 4.69


Winter weather in Illinois can cause a lot of difficulties for local homeowners. Heavy snows, gusty winds, and severe storms can all play a role in damaging area homes.

  • Number of federally declared disasters since 1953: 60
  • Most common cause of disasters in the state: Severe Storms
  • Average number of tornadoes in the state per year: 54.0
  • Amount paid in home insurance claims in 2016: $1,958,191,000

Home Values:

The estimated cost to rebuild your home will play a large role in how much your home insurance costs. In Illinois, the average home value is slightly lower than the national average, and this helps to keep insurance prices affordable for most residents.

  • Average home value in IL: $186,500
  • Average home value in the US: $188,900

Yes! There are currently 1,184 independent agencies in Illinois who are ready to help. Did you know that independent insurance agents can give you multiple policy options to choose from? That way, you'll receive completely customized coverage that addresses all of your unique insurance needs.

Popular Questions about Illinois Business Insurance

Last year small businesses in Illinois made $490 billion. If a liability claim, property damage or workers' compensation claim came your way, how would you handle the associated costs? 

If you don't have the proper amount and types of coverage, you'll have to pay for such expenses out of your pocket, meaning they have to be paid out of your business’s revenue.

40% of small businesses are likely to experience a property or general liability claim in the next 10 years. Here are some things these companies have been using their insurance on:

  • Theft or Burglary: Average cost per claim - $8,000
  • Water damage and freezing pipes: Average cost per claim - $17,000
  • Wind and hail damage: Average cost per claim - $26,000
  • Fire damage: Average cost per claim - $35,000
  • Customer slip and fall: Average cost per claim - $20,000

Illinois business insurance will pay for covered claims so your business doesn’t have to. It gives you peace of mind so you can focus on what matters: your business's bottom line.

Here’s what a standard business insurance policy should do:

Pay for damage to your building

  • This is called “commercial property insurance.”
  • Example: A tree falls on your office building.

Pay for damage to your business property

  • This is called “business personal property insurance.”
  • Example: A fire destroys all of your computers.

Pay for damage to someone else’s property

  • This is called “general liability insurance.”
  • Example: A contractor does a poor job of installing a cabinet and it falls and breaks a homeowner's kitchenware.

Pay for someone else’s medical bills

  • This is also called “general liability insurance.” 
  • Example: A customer slips and falls on your recently mopped floor and breaks an arm.

Pay for accidents in company vehicles

  • This is called “commercial auto insurance.”
  • Example: Your salesperson rear-ends someone while driving to an appointment.

Pay for employee injuries and compensation

  • This is called “workers' compensation.”
  • Example: An employee falls off a ladder at work and can’t work for two weeks.

Sometimes, these coverages are not enough to properly protect a business against risk. Your business most likely faces unique risks and may need additional coverages.

To make sure you're properly insured, find an independent insurance agent who specializes in your field.

A commercial insurance policy is not required of Illinois business owners, but certain aspects of it may be. 

In this state, businesses that employ one or more people must carry workers' compensation insurance, and businesses that have company-owned vehicles must carry commercial auto insurance. To learn more about coverage that you may need to carry, you can talk with a local independent insurance agent.

It primarily depends on how risky your business is. The riskier your business is, the higher your insurance will be. Here are two examples.

  • A sole proprietor who owns a garment hemming business: $260 per year
  • A commercial landscaper with five employees who operate heavy machinery: $22,700 per year

Business insurance rates are calculated using a number of factors such as the risks to your business property, your liability coverage needs, and the amount and types of coverage you want. Policies can vary significantly by business industry, so it is best to talk with an experienced insurance agent when building a suitable and comprehensive policy for your business.

It’s usually wise to work with an independent agent in Illinois, since they have access to multiple insurance companies. Sometimes its difficult to find an insurance company that will cover your business.

  • There are 1,259 independent agencies in Illinois who are ready to help.
  • Last year these agents helped 2,972 people.

Popular Questions about Workers' Compensation in Illinois

A recent article in Insurance Journal indicated that with a median rate index of $2.35 per $100 of payroll, Illinois has the seventh highest average workers’ comp premium rate of all US states, according to the recent Oregon Workers’ Compensation Premium Ranking Study. The national average index rate is $1.85 per $100 of payroll.

The cost of a workers' compensation insurance policy in Illinois depends on several factors. A restaurant in Chicago will pay a different rate than a construction company in Springfield. Workman's compensation rates are affected by the following elements:

  • Size of the employer's payroll
  • Employee job classifications, or base rates
  • The employer’s experience modifier; in other words, the company's workers' compensation claims history

Experience modifiers are calculated by the National Council on Compensation Insurance (NCCI) or by another independent agency in some states. Your mod represents a debit or credit that is applied to your workers’ compensation premium. A high experience modifier means the employer has had workers' compensation claims in their recent history. A low experience modifier means they have a claims-free past.

Your workers' compensation premiums are determined with the following formula:

Base Rate X Payroll X Modifier = Premium

A mod of 1.0 is considered to be average and does not impact your premium. All employers start out with a mod of 1.0. A mod greater than 1.0 is a debit mod. This means that your losses were worse than expected, and your premium goes up. A mod less than 1.0 is a credit mod. This means your losses were better than expected, and your premium goes down. 

  • Premium: $100,000
  • Mod: 0.75 (25% premium credit)
  • Premium with mod credit applied: $75,000
  • Premium: $100,000
  • Mod: 1.0
  • Premium is not adjusted
  • Premium: $100,000
  • Mod: 1.25 (25% premium surcharge/debit)
  • Premium with mod debit applied: $125,000

A claims-free business that employs only clerical workers will pay workers' compensation premium at a rate of $0.12 per $100 of payroll. A concrete construction outfit with a history of several workers' compensation claims in its past will pay premium at a rate of $17.04 per $100 in payroll; if the construction company's payroll is $300,000, the workers' compensation premium will be $51,120.

Base rates can fluctuate from year to year if the rating agency makes any changes. Here are some more examples of Illinois workers' comp base rates depending on experience mods for 2016:

  • 0042 Landscaping. Low mod: $8.77    High mod: $21.21
  • 3632 Machine Shop. Low mod: $3.78    High mod: $9.14
  • 3821 Salvage Yard. Low mod: $6.03    High mod: $14.60
  • 8006 Gas Station. Low mod: $2.12    High mod: $5.13
  • 8017 Retail Store. Low mod: $1.83    High mod: $4.44
  • 8380 Auto Shop. Low mod: $3.23    High mod: $7.81

In Illinois, workers' compensation insurance is sold in the private sector. Employers may contact a licensed insurance agent, perhaps one who specializes in business owners' insurance. If an employer cannot find an insurer to write them a policy, they must sign up with, or have their insurance agent enroll them in, the market of last resort. This residual market, in which premiums cost about 50% more than the open market, is administered by the NCCI. Therefore, it is recommended that employers purchase their workers' compensation in the private market.

Knowledgeable, independent insurance agents are up-to-date on the legislative movement toward workers' compensation reform in Illinois. These agents are able to assist any business in finding a workers' compensation insurance policy that fits their company goals while complying with state law. These agents work for your business, not the insurance company, and they are able to gather a number of policy quotes from a variety of providers, ensuring that the  policy you buy offers the best coverage at the most competitive rates.

Popular Questions about Farm & Crop Insurance in Illinois

Farm and crop insurance are two different types of coverage. Each can benefit Illinois farmers by protecting against common risks in this state. You can opt to buy either or both types of coverage. Many Illinois farmers purchase both.

  • Farm insurance: This is designed to cover your farm property and protect against liability risks. 
  • Crop insurance: This covers damage to your crops and shields you from large financial losses related to significant fluctuations in the price of the commodities you are producing.

An independent insurance agent can help you determine which policies can benefit you.

The most common risks faced by farmers in Illinois are severe weather, fire, commodity price drops, and liability lawsuits.

Severe weather

  • Hail: Illinois is among the states most affected by hail damage.
  • Freezing temperatures/frosts: Occasional freezing temperatures during the growing season can damage crops and present harvesting problems.
  • Tornadoes: On average, 54 tornadoes touch down in this state each year.
  • Heavy rains and floods: Between 2000 and 2018, there were more than 1,500 floods in Illinois causing about $3 billion in damage.
  • Example: An unusually wet spring in 2019 led to a 59% decline in corn production in this state.
  • Covered by: Farm insurance covers damage to buildings and machinery; crop insurance covers damage to crops.


  • Wildfires: Wildfires are not as common in Illinois as in some neighboring states, but they still pose a threat. In 2018, six wildfires burned 120 acres of land in this state.
  • Accidental fires: Accidental fires sometimes happen. If your farmhouse or a barn burns down, it can result in loss or damage to expensive property and kill livestock.
  • Example: In 2018, an accidental fire at an egg farm in this state killed about 50,000 chickens.
  • Covered by: Farm insurance covers damage to buildings, property, and livestock; crop insurance covers you if a wildfire takes out your crops.

Insect infestation, disease, and predators

  • Affecting plants: An insect infestation or unmitigated plant disease can kill crops and damage soil.
  • Affecting animals: Livestock may be sickened or killed by disease or attacked by predators.
  • Example: Illinois farmers lose about 15 million bushels of corn to root rot and seedling blights every year.
  • Covered by: Crop insurance covers you for plant diseases and infestations; farm insurance covers you for livestock diseases.

Liability lawsuits

  • Related to products: If the products your farm produces cause others to suffer illnesses or injuries, you can be sued for damages.
  • Related to third-party injuries: If you allow visitors to your farm for activities or commerce and someone is injured in an accident on your property, your farm business can be named in a liability lawsuit.
  • Related to worker injuries: Farmers in Illinois are not required by law to cover the workers they employ. Without liability protection, you can be sued if a laborer is seriously injured on the job.
  • Examples: Hog farmers have recently found themselves on the wrong end of pollution liability lawsuits due to the high quantity of nitrates and phosphates in pig manure.
  • Covered by: Farm insurance covers liability lawsuits.

Your farm isn’t just your home, it is also your business. Farm insurance is specially designed coverage that protects both.

Here’s what you can expect a standard farm insurance policy to do:

Pay for damage to your farm buildings

  • A farm insurance policy can cover the structures on your land including barns, silos, sheds, garages, and your farmhouse.
  • Example: A tornado destroys your barn and damages one of your silos.

Pay for damage to your farm property

  • Farm insurance covers your property including the contents of your home, your farm equipment like hay rakers, and your tools and machinery including tractors, balers, and combines.
  • Example: A hailstorm causes significant mechanical damage to your farm equipment.

Pay for the costs associated with liability lawsuits

  • Liability insurance covers the cost of legal defense, court costs, and damages if your farm is sued for a covered event.
  • Example: An E. coli breakout is traced back to your farm and you are sued for damages.

Cover your livestock

  • If your livestock are killed by a severe weather event, predators, or disease, you can receive compensation for your losses.
  • Example: Several head of cattle are killed when heavy rains lead to flooding at your farm.

Crop insurance is designed to cover loss or damage to your crops as well as significant drops in commodity value.

There are three different types of crop insurance. You can opt to buy just one or a combination of coverage:

Multiple peril crop insurance (MPCI)

  • This covers your crops against a wide range of hazards including tornadoes, floods, droughts, insect infestations, and plant diseases.
  • Example: An insect infestation causes your farm to lose several acres of produce.

Crop-Hail insurance

  • This covers your crops against hail damage only. This provides low-cost coverage for high-yield crops, but the coverage is somewhat limited.
  • Example: A major hailstorm causes you to lose 50% of your corn harvest.

Crop revenue insurance

  • This covers against revenue losses due to an extreme drop in the price of the commodities you produce on your farm. It also covers financial losses if you have a lower-than-expected crop yield.
  • Example: Unforeseen tariffs cause a significant decrease in soybean prices.

Farm and crop insurance are not required by law in Illinois, and many owners of small farms opt to go without it.

However, considering that the more than 72,000 farms in this state generate about $19 billion in revenue every year, it is easy to see why these insurance policies are important, not only to the individual farmers who carry them, but also to the state’s overall economy.

Talk with a local independent insurance agent to learn more about this coverage and to get help deciding whether a policy is a good investment for your particular farm.

Last year, farmers in Illinois paid a total of $277.6 million for farm insurance and $85.4 million for crop insurance. These policies provided more than $10 billion in coverage in this state.

Your cost for farm insurance will depend on several factors such as:

  • The size and location of your farm
  • The number and types of buildings you have on your property
  • The number and types of livestock you are raising
  • The types of crops you are growing and the number of acres planted
  • The value of your farm machinery
  • Whether you have employees, and if so, how many
  • The policy options and coverage limits you are purchasing

A local independent agent can help you obtain and compare a selection of customized farm and crop insurance quotes so you can see how much a policy will cost for your particular farm.