ILIVS and the Impact on Uninsured Drivers in Illinois: A Long-Term Solution for Rising Costs

January 22, 2025 at 03:39 AM EST

By Al Sneineh, President of Insured ASAP Insurance

Illinois, January 21, 2025 — As the president of Insured ASAP Insurance, an independent insurance agency that has been serving the Illinois market for years and is now licensed in 21 states and growing, I’ve seen firsthand the challenges facing Illinois residents when it comes to maintaining insurance coverage. With nearly two decades of experience in the insurance industry, including navigating hard markets, I understand the financial pressures many vehicle owners are facing today. From rising insurance premiums to the ongoing economic strain, many Illinoisans are struggling to keep up with their financial obligations, including auto insurance.

One of the most pressing issues in the state today is the growing number of uninsured drivers. As insurance premiums continue to climb, and many vehicle owners find themselves buried in debt, ILIVS – the Illinois Insurance Verification System – has become a crucial tool in addressing this issue. While ILIVS plays an essential role, it’s important to understand how the system works and what it means for Illinois vehicle owners both in the short term and in the long run.

The ILIVS Numbers: A Snapshot of Progress

The Illinois Insurance Verification System (ILIVS) was officially launched in January 2021 to address the problem of uninsured drivers and to automate the process of verifying insurance coverage for vehicles registered in Illinois. However, the system’s launch was delayed due to the COVID-19 pandemic. The original plans for ILIVS were set to begin earlier, but the pandemic disrupted timelines, and as a result, implementation was pushed back.

In addition to the challenges brought about by the pandemic, Illinois residents were facing another obstacle – limited access to DMV offices. At the time of ILIVS’s rollout, many people were moving frequently, which made it difficult for them to update their registration addresses. As a result, many ILIVS notices were sent to outdated addresses, causing them to be lost and delaying the process of insurance verification.

Here’s a breakdown of the number of ILIVS notices sent since the system’s inception:

2021: 105,154 notices sent
2022: 584,276 notices sent
2023: 639,938 notices sent
2024: 674,594 notices sent

This data reflects the steady growth and increased usage of the ILIVS system as the state moves toward greater insurance compliance. 2025 projections indicate a significant rise, with more than 700,000 notices expected to be sent by the end of the year, marking a 10-20% increase from 2024.

Year-over-Year Growth and Trends

From 2021 to 2022, the system saw an increase of over 479,000 notices – an astonishing 457% increase. This jump can be attributed to several factors, including:

Wider adoption of ILIVS by insurers and law enforcement.
Increased efforts by the state to address uninsured driving, which is a growing problem in Illinois.

From 2022 to 2023, the increase slowed to 55,662 notices, reflecting a more stable compliance rate, but still representing a 9.5% year-over-year growth. The slower growth rate can be attributed to several factors:

A higher initial rate of uninsured drivers being identified and brought into compliance during the early years of ILIVS.
Increased public awareness of the consequences of non-compliance, which led to more people ensuring they maintained their insurance coverage.

The 2023 to 2024 growth was 34,656 notices, which represents a 5.4% increase. The slower growth rate reflects the system maturing, with more drivers in compliance, but still showing significant numbers of drivers who are failing to meet the state’s insurance requirements. This consistent rise in notices is also due to Illinois’ ongoing efforts to increase accountability for uninsured driving.

Second Offenses and Their Impact

One of the key areas of concern for ILIVS moving into 2025 is the projected increase in second offenses. It is estimated that over 115,000 additional notices will be sent in 2025 for second offenses. These second offenses come with significant consequences, including:

A minimum 4-month suspension of the vehicle’s registration (license plates).
A $100 non-compliance fee.

For those caught driving a vehicle with suspended registration, the consequences can be even more severe. If a driver is stopped by police while driving a vehicle with suspended registration, the fine can range from $1,000 to $2,000, and it is considered a criminal offense. This not only results in a significant financial burden but could also lead to legal complications, adding further hardship to those who are already struggling with rising insurance costs and debt.

These penalties should not be taken lightly. The suspension of vehicle registration combined with high fines and the criminal nature of the offense presents a serious risk for drivers. For individuals already facing financial challenges, these additional costs can be devastating.

The Future of ILIVS

As ILIVS continues to evolve, the state will likely see both an increase in the volume of notices and a decrease in uninsured driving. This is due to the combined effect of:

Stronger enforcement and penalties for non-compliance.
The ongoing public education efforts about the importance of maintaining insurance.

By 2025, it is expected that ILIVS will have sent over 2.5 million notices since its inception. This includes both first offenses and second offenses, which will play a crucial role in reducing the number of uninsured drivers and improving overall road safety in Illinois.

The Economic Context of ILIVS

The growth in ILIVS notices is directly related to the increasing number of uninsured drivers in Illinois, which remains a significant concern. Current estimates suggest that 12-14% of drivers in Illinois are uninsured – around 2.5 million drivers on the road. This figure has been steadily increasing, driven by factors such as:

The financial strain of rising auto loan debt.
Increased insurance premiums due to inflation and supply chain disruptions.

While ILIVS is making progress, the overall goal is to reduce this percentage, which would have a ripple effect on the broader insurance market. By ensuring that all drivers are properly insured, ILIVS has the potential to lower premiums for responsible drivers, reduce the burden on the state’s uninsured motorist coverage, and improve road safety.

Solutions for Illinois Vehicle Owners Struggling with Insurance Costs

If you are one of the many Illinois residents struggling to keep up with your insurance payments, it’s important to know that there are solutions available to help you manage your costs:

Trade In for a More Affordable Car: If your vehicle is expensive to insure, consider trading it in for something more affordable. Opting for a used car or a vehicle with a lower risk profile can significantly lower your monthly insurance premiums.
Consider Non-Standard Insurance Policies: If you’re having difficulty securing affordable insurance, it might be worth exploring non-standard insurance policies. Many preferred carriers use factors like credit scores, territory, and motor vehicle records to determine your premium. Non-standard carriers may be more flexible in pricing, especially for those with less-than-perfect credit or challenging driving histories.
Shop Around for Quotes: Insurance rates can vary significantly between companies. As the president of Insured ASAP Insurance, I encourage you to compare quotes from different providers to find the best deal for your specific situation.
Look for Discounts: Many insurers offer discounts for good driving behavior, bundling multiple policies, or taking a defensive driving course. It’s worth exploring these options to lower your rates.

Conclusion: ILIVS is Part of the Solution for a Safer, More Affordable Future

As Illinois continues to face economic challenges, ILIVS serves as a critical tool in ensuring that all drivers are insured, reducing the number of uninsured motorists, and helping to stabilize the insurance market for everyone. While rising costs may feel burdensome, ILIVS is ultimately working in your best interest by lowering long-term premiums and promoting fairness on the road.

For Illinois vehicle owners facing financial difficulties, there are solutions available that can help you maintain the proper coverage without breaking the bank. As the president of Insured ASAP Insurance, I’ve seen how insurance can provide peace of mind, and we’re here to help you navigate these challenges.

Media Contact:

Al Sneineh

Insured ASAP Insurance

(800) 641-7488

https://www.insuredasap.com

Insured ASAP Insurance

Originally Posted On: https://syndication.cloud/ilivs-and-the-impact-on-uninsured-drivers-in-illinois-a-long-term-solution-for-rising-costs/

About Us

About Cabling Installation & Maintenance

Contact Cabling Installation & Maintenance

Editorial

Advertising and Sponsorship Sales

Subscriptions and Memberships

Feedback/Problems