If you have been turned down for car insurance in Illinois because of your driving record, the Illinois Automobile Insurance Plan (ILAIP) is the state’s safety net. It is an assigned risk plan, meaning high-risk drivers who cannot buy a policy on the open market are placed with an insurer that is required to cover them. You still pay for coverage, usually at a higher rate, but you get the liability insurance Illinois law requires so you can legally stay on the road.
Most drivers end up in the plan temporarily and can work their way back to the standard market once their record improves.
What is an assigned risk plan?
An assigned risk plan is a way of providing auto insurance to drivers who would otherwise be denied it because insurers see them as too risky to cover voluntarily. Instead of shopping the open market, an eligible driver is assigned to a participating insurance company that must issue a policy. The pool of these hard-to-insure drivers is often called the residual market or the assigned risk pool, and every insurer doing business in the state shares it.
Illinois runs its version of this system through the ILAIP, which has operated since 1940. Any company that writes auto insurance in Illinois is required to participate, so the burden of covering high-risk drivers is spread across all insurers rather than falling on any one carrier.
What is the Illinois Automobile Insurance Plan (ILAIP)?
The ILAIP is Illinois’s assigned risk plan for drivers who cannot find coverage in the standard market. It is administered nationally through AIPSO, and it exists to make sure people who need a car for work and daily life can still meet the state’s mandatory insurance requirement. It is a last resort, not a discount program, so the goal is access to coverage rather than the lowest price.
Drivers usually end up in the ILAIP for reasons like these:
- A record with at-fault accidents, serious traffic violations, or a DUI
- A recent license suspension or reinstatement
- A lapse in prior insurance coverage
- Little or no established driving history
Who qualifies for the ILAIP
The plan is meant for drivers who have genuinely tried and failed to buy insurance on their own. To be eligible, you generally must meet these conditions:
- You tried and could not obtain auto insurance in Illinois within the preceding 60 days
- You hold a valid Illinois driver’s license or are eligible to obtain one
- You are not able to get comparable coverage at rates lower than the plan’s
- You apply through an agent or broker licensed to write auto insurance in Illinois
You apply by certifying that you were unable to find coverage in the voluntary market. A licensed Illinois agent or broker submits the application on your behalf, so you do not deal with the plan directly.
How the ILAIP assigns you to an insurer
Once your application is accepted, you are placed in the residual pool and assigned to a regular insurance carrier. That company is required to issue you a policy and service your claims just as it would for any other customer. Insurers take on ILAIP drivers based on their share of the Illinois auto insurance market, so the assignments are distributed by quota rather than by choice.
The coverage you receive through the plan is real auto insurance from a licensed carrier. The main differences from a standard policy are that you did not choose the insurer and that your premium reflects your high-risk status.
What assigned risk coverage costs in Illinois
Expect to pay more through the ILAIP than a driver with a clean record pays in the standard market. Because the plan covers people other insurers declined, premiums are set to account for that added risk. The plan is designed to give you the coverage you are legally required to carry, not to compete on price.
A policy issued through the plan still has to satisfy Illinois’s minimum insurance rules. Illinois requires most vehicles registered in the state to carry a liability policy (625 ILCS 5/7-601), and the minimum limits are at least $25,000 for injury to or death of one person, $50,000 per crash when more than one person is hurt, and $20,000 for property damage (625 ILCS 5/7-203). You can carry higher limits, and it is often worth doing, because those minimums run out quickly in a serious wreck. Our overview of required auto insurance coverages breaks down what each part of a policy actually pays for.
Moving off the assigned risk plan
The ILAIP is meant to be temporary. If you keep a clean record and avoid new accidents, tickets, or coverage lapses, you can usually qualify for a standard policy again over time. Once you do, shopping the regular market again typically brings your premium down. It is worth getting quotes periodically rather than staying in the plan longer than you need to.
While you are in the plan, treat your policy like any other. Keep up with payments, report claims promptly, and hold onto the coverage without gaps, since a new lapse can push you right back into high-risk territory.
If a high-risk driver caused your Illinois crash
Being covered through the ILAIP does not change who is responsible for a wreck. Illinois is an at-fault state, so the driver who caused the crash and their insurer are on the hook for the damages, whether that policy came from the standard market or the assigned risk pool. If the at-fault driver had only minimum limits, or no valid coverage at all, your own uninsured motorist coverage may help fill the gap.
Deadlines matter too. Most Illinois personal-injury claims must be filed within two years of the crash (735 ILCS 5/13-202), and evidence fades long before then. A claim against your own uninsured motorist coverage runs on a different clock, one set by your policy rather than by that two-year statute, although Illinois pauses any policy suit-limitation period from the date you file proof of loss until the insurer denies the claim in whole or in part (215 ILCS 5/143.1). Read your policy’s notice and suit provisions early, because a missed contractual deadline can end a UM claim while the two-year injury window is still open. If you were hurt by another driver, our guide to Illinois auto insurance claim laws and our Illinois car accident lawyers can walk you through how the coverage applies to your case.
Frequently asked questions
What is an assigned risk plan in auto insurance?
It is a program that provides coverage to drivers who cannot buy a policy on the open market because insurers consider them too high-risk. The driver is assigned to a participating insurer that is required to cover them. In Illinois, that program is the ILAIP.
How do I qualify for the Illinois Automobile Insurance Plan?
You generally must have tried and failed to get coverage in Illinois within the last 60 days, hold or be eligible for a valid Illinois driver’s license, and apply through a licensed Illinois agent or broker. You certify that you could not find coverage in the standard market.
Is assigned risk insurance more expensive?
Usually yes. Because the plan covers drivers other insurers declined, premiums are higher than what a driver with a clean record pays. The plan is built to give you legally required coverage, not the lowest rate.
How long do I have to stay in the assigned risk pool?
The plan is temporary. If you maintain a clean driving record and avoid coverage lapses, you can typically move back to a standard policy over time and lower your premium by shopping the regular market again.
Does the ILAIP meet Illinois minimum insurance requirements?
Yes. A policy issued through the plan satisfies Illinois’s mandatory liability limits of 25/50/20, meaning at least $25,000 per person and $50,000 per crash for bodily injury, plus $20,000 for property damage (625 ILCS 5/7-203).
If another driver hurt you in a crash, sorting out which coverage applies can get complicated fast. Contact 844-SEE-MIKE anytime for a free, no-pressure consultation, and you pay nothing unless we recover money for you.
This article is general information about Illinois law and not legal advice for your specific situation.
