Yes. Liability insurance is required by law in the state of Illinois.
The Illinois Mandatory Insurance Law requires ALL motorists to have auto liability Insurance on their vehicles or face SEVERE PENALTIES. If you are caught driving without insurance because you failed to keep up your monthly payments and your auto liability insurance is canceled you will be subject to the penalties of the law including license suspension, fines of $500 to $1,000 and even impounding of your car as well as the possibility of serious financial loss if you have an accident. You can avoid the risk of such penalties and by simply making your payments on time and keeping your insurance in force.