Financial Responsibility Suspensions in Illinois

Illinois maintains detailed financial responsibility laws to ensure all drivers carry minimum liability insurance. When a motorist fails to comply, the Secretary of State may impose a suspension that requires filing and maintaining SR-22 insurance for a period of years. Wirth Law provides professional legal representation for individuals seeking to reinstate their driving privileges following an insurance-related suspension or license revocation.

When is an SR-22 Certificate Required in Illinois?

In Illinois, the Secretary of State requires an SR-22 certificate to be filed when a motorist has demonstrated a pattern of unsafe or unlawful conduct involving vehicle insurance or operation. The primary categories that require SR-22 filings include:

• Safety Responsibility Suspensions (625 ILCS 5/7-201): This provision applies when a person is involved in an accident resulting in injury, death, or property damage of $500 or more, and fails to prove financial responsibility. A suspension is imposed unless the driver submits proof of insurance or complies with the financial responsibility law.
• Unsatisfied Judgment Suspensions (625 ILCS 5/7-301): When a civil judgment resulting from a motor vehicle accident remains unpaid for 30 days, the Secretary of State will suspend the driver’s license until the judgment is satisfied or settled. However, a judgment must be renewed every seven years in order to remain enforceable (735 ILCS 5/12-108(a)). If seven years have passed without renewal or further legal action, the judgment may become dormant and unenforceable. In such cases, the suspension may be eligible to be lifted without payment of the old judgement.
• License Revocations (625 ILCS 5/6-208 and 5/7-303): Drivers whose licenses have been revoked due to serious traffic violations, such as a DUI conviction, are often required to maintain SR-22 insurance for a minimum of three years as a condition of maintaining driving privileges.
• Mandatory Insurance Supervision (625 ILCS 5/7-601 and 7-604): This involves close monitoring of drivers who have previously been cited for insurance violations. These individuals may be required to submit SR-22 documentation to prove ongoing compliance with the Mandatory Insurance Law.
• Three or More Convictions for Driving Without Insurance (625 ILCS 5/7-601): A driver convicted of three or more violations of the mandatory insurance law may face extended suspensions and an SR-22 filing requirement to ensure future compliance.

Each of these statutes is intended to enforce financial accountability among motorists and reduce the risk posed by uninsured drivers on Illinois roads.

What Is SR-22 Insurance?

An SR-22 is not an insurance policy. It is a certificate provided by an insurance company confirming that a driver is carrying the state-required minimum liability insurance. An SR-22 certificate must be filed directly with the Illinois Secretary of State by the insurer. The SR-22 certificate comes in three forms:

• Operator’s Certificate: Covers the individual while operating any vehicle not owned by the individual.
• Owner’s Certificate: Covers the individual’s own vehicle or vehicles.
• Operators-Owners Certificate: Covers both owned and non-owned vehicles.

To obtain an SR-22, the insurance company must be licensed in Illinois and have a power of attorney on file. The insurer submits the SR-22 electronically to the Secretary of State. Once processed, a copy of the certificate and a confirmation letter are sent to the driver.

Maintaining SR-22 Coverage

Once an SR-22 certificate is filed, the insurance must be maintained without interruption. If the policy lapses, the insurer must file an SR-26 cancellation certificate. Upon receipt of the SR-26, the Secretary of State will suspend the driver’s license. The suspension remains in effect until the Secretary SR-22 is reinstated and active.

Out-of-State SR-22 Waivers

Illinois allows certain individuals to waive the SR-22 insurance requirement if they are no longer residents of the state. Under 625 ILCS 5/7-302, a person whose driving privileges have been suspended or revoked may file an Out-of-State Affidavit with the Illinois Secretary of State. This affidavit certifies that the individual resides outside Illinois.

If accepted, the affidavit waives the obligation to maintain SR-22 insurance while the individual remains out of state. This can apply to both suspensions and revocations that require SR-22 for compliance. However, the underlying suspension or revocation remains on the person’s Illinois driving record and is not cleared by filing the affidavit. If the individual returns to Illinois within three years, the Secretary of State may reinstate the SR-22 requirement as a condition of obtaining driving privileges.

Non-Owner SR-22 Insurance

Non-owner SR-22 insurance covers liability when operating a vehicle not owned by the policyholder. It satisfies the financial responsibility requirement and is appropriate for individuals who do not currently own a car but are required to file an SR-22. These policies do not cover vehicle damage but fulfill liability coverage mandates.

Restrictions may apply, including disqualification for business use vehicles or individuals with certain prior offenses. Premiums are typically lower than standard SR-22 insurance, but eligibility depends on the insurer’s guidelines.

Judgment Suspensions and Installment Agreements

A judgment suspension occurs when an individual fails to pay a civil judgment related to a motor vehicle accident. Under 625 ILCS 5/7-303, the Secretary of State will suspend the license until the judgment is satisfied, discharged in bankruptcy, dormant, or an installment agreement is in place.

Drivers may avoid suspension by entering into a court-approved installment agreement with the judgment creditor. Proof of such an agreement must be filed with the Secretary of State. If the agreement is broken, the suspension will be reinstated. Prior to entering into an installment agreement, it is recommended that an individual consult with counsel to understand their options and whether an installment agreement is appropriate.

Electronic Insurance Verification

In 2020, Illinois began enforcing mandatory insurance requirements through an electronic liability verification system. Each registered vehicle is checked at least twice a year using data submitted by insurers to a third-party vendor.

If insurance coverage cannot be verified, a second attempt is made thirty days later. If the vehicle still appears uninsured, a registration suspension letter is issued. The owner has thirty days to prove insurance coverage on the date of verification or face registration suspension.

To lift a suspension, the owner must obtain coverage and pay a $100 fee through the ILIVS.com portal. This applies to most passenger vehicles and excludes trailers.

Enforcement Through Traffic Citations

Police may issue citations for failure to present valid insurance during a traffic stop or after an accident. Conviction results in the following penalties:

• Minimum $500 fine for driving uninsured.
• Minimum $1,000 fine for driving with license plates suspended due to a prior insurance violation.

Additionally, a conviction may result in plate suspension, which continues until the driver obtains insurance and pays the reinstatement fee.

Reinstating a Suspended Registration

First-time offenders may reinstate vehicle registration after obtaining valid insurance and paying a $100 fee. Repeat offenders face a four-month suspension and must fulfill the same requirements after the suspension period ends.

No one may drive a vehicle with suspended registration, even if the driver is insured. Reinstatement is completed online through ILIVS.com using the reference number from the suspension notice.

Wirth Law: Free Consultations

Illinois imposes financial responsibility laws to ensure all drivers carry minimum liability insurance. When a motorist fails to comply, the Secretary of State may impose a suspension that requires filing and maintaining SR-22 insurance for a specific period. Our office provides legal assistance for individuals seeking to reinstate their driving privileges following an insurance-related suspension.

Wirth Law has focused exclusively on Illinois driver’s license reinstatement and DUI defense for over twenty years. We have extensive experience reinstating licenses after various suspensions and revocations. Our practice offers competitive pricing and flat rates. With offices in Chicago and Naperville, we regularly help individuals regain driving privileges in Cook, Will, Kane, Kendall, Lake, Kankakee, Dekalb, and Winnebago Counties. We also represent out-of-state drivers who have an Illinois hold on their driving privileges.

Our practice is known for its exceptional client service and strong record of success with license reinstatement cases. Jennifer Wirth, managing attorney, has received multiple awards recognizing her commitment to client advocacy, including perfect “10” ratings on Avvo and Justia, the Martindale-Hubbell Client Champion Award, and selection as one of the top DUI defense attorneys in Chicago by Expertise.com. Her approach to legal representation is grounded in professionalism, compassion, and an in-depth understanding of Illinois Secretary of State hearing procedures.

Wirth Law offers free consultations and payment plan options through Affirm. To schedule a consultation, contact Wirth Law at (312) 761-8290 or email jennifer@wirthlaw.org.

Further Reading: Illinois Traffic Law

• Area of Practice: Illinois Traffic Law
• Mandatory and Discretionary Revocations
• Fake Identification Suspensions
• Financial Responsibility Suspensions
• Failure to Appear
• Licensing for Non-Citizens and Undocumented Persons
• Illinois Driving Records and Abstract Codes
• Penalties for Driving on Suspended or Revoked License
• Forms of Driving Relief after an Illinois Revocation