Illinois Compiled Statutes

815 ILCS 375/8 (2026)

(a) A seller under a retail installment contract may require insurance against substantial risk of loss of or damage to the motor vehicle, protecting the seller or holder as well as the buyer, and may, if the buyer elects, include therefor in the contract an amount not exceeding the premiums chargeable for such insurance in accordance with rate filings made with the Director of Insurance

✓ current as of May 2026
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(815 ILCS 375/8) (from Ch. 121 1/2, par. 568)
    Sec. 8. (a) A seller under a retail installment contract may require insurance against substantial risk of loss of or damage to the motor vehicle, protecting the seller or holder as well as the buyer, and may, if the buyer elects, include therefor in the contract an amount not exceeding the premiums chargeable for such insurance in accordance with rate filings made with the Director of Insurance. No seller or holder may require as a condition precedent to, or as a part of, a retail installment transaction that such insurance be purchased from or through the seller or holder, or any employee, affiliate, or associate of seller or holder. A seller under a retail installment contract may not require other insurance; but if the buyer voluntarily contracts therefor, the seller may then include in the contract an amount for that other insurance not exceeding the premiums paid or payable by the seller or holder. In those transactions where the buyer elects to select the insurance company, broker or agent for the purpose of obtaining insurance required by the holder under this Section, the buyer must, on or before the date when buyer takes possession of the motor vehicle, furnish the holder with satisfactory evidence of insurance in a company acceptable to the seller or holder.
    (b) If the obligor fails to furnish evidence that he has procured insurance on the property, the licensee may purchase substitute insurance that may be substantially equivalent to or more limited than coverage the obligor is required to maintain. Such insurance must comply with the Collateral Protection Act.
(Source: P.A. 90-437, eff. 1-1-98.)

    
Notes of Decisions
Cited in 3 cases, 1995–1996 · leading case: Moore v. Fid. Fin. Servs., Inc., 884 F. Supp. 288 (N.D. Ill. 1995).
Moore v. Fid. Fin. Servs., Inc., 884 F. Supp. 288 (N.D. Ill. 1995). “defendant’s (not the borrowers’) interests and thus is prohibited under the Illinois Motor Vehicle Retail Installment Sales Act, 815 ILCS 375/8, which provides in part: A seller under a retail installment contract may require insurance against substantial risk of loss of or…”
Ortiz v. Gen. Motors Acceptance Corp., Inc., 673 N.E.2d 424 (Ill. App. Ct. 1996). “) 815 ILCS 375/8 (West 1992). Plaintiffs argue that section 8 of the Motor Vehicle Retail Installment Sales Act requires property damage insurance protecting the seller or holder of the contract and the buyer (plaintiffs).”
Ortiz v. Gen. Motors Acceptance Corp. (Ill. App. Ct. 1996). “) 815 ILCS 375/8 (West 1992). Plaintiffs argue that section 8 of the Motor Vehicle Retail Installment Sales Act requires property damage insurance protecting the seller or holder of the contract and the buyer (plaintiffs).”
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