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Best cheap car insurance in Chicago for 2024
Powered by Coverage.com (NPN: 19966249)
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
The best cheap car insurance companies in Chicago
Choosing the best car insurance in Chicago often involves more than just finding the lowest rates. While Travelers, Mercury and Geico offer some of the cheapest full coverage options, other factors like coverage types, digital experience and ratings from organizations such as J.D. Power and AM Best also play a significant role. Bankrate's evaluation considers all these aspects to provide a comprehensive Bankrate Score, helping you make informed decisions when seeking the best cheap car insurance in Chicago.
Bankrate Score
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Why Geico made our list: Geico stands out in Chicago for its cost-effective car insurance and strong digital tools, which may be ideal for policyholders who prefer managing their insurance online. Geico does offer essential add-ons like emergency roadside service and rental reimbursement, but its endorsement options are not as robust as some competitors'.
Why Geico is best for budget-conscious drivers: Geico could be the go-to choice for budget-conscious drivers in Chicago. Our data analysis from Quadrant Information Services shows that Geico offers some of the lowest average rates for full and minimum coverage. Additionally, Geico provides a variety of discounts, including those for young drivers and safe drivers, making it a potential contender for those looking to save on their auto insurance without compromising on service quality.
| Bankrate Score | 4.4 |
| J.D. Power | 831/1,000 |
| AM Best score | A++ |
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Why State Farm made our list: State Farm stands out in Chicago for its local agents and comprehensive service. Although it may not have the lowest rates, State Farm is recognized for providing excellent customer service through its network of local agents. The company also offers a robust digital experience, making it convenient for policyholders who like to manage their insurance online. The company’s Drive Safe and Save telematics program may help policyholders improve their driving habits and potentially lower their premiums.
Why State Farm is best for personalized service: State Farm often excels in offering personalized insurance experiences through its extensive network of local agents. This could be ideal for drivers in Chicago who value face-to-face interactions and customized service
| Bankrate Score | 4.3 |
| J.D. Power | 837/1,000 |
| AM Best score | A++ |
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Why Travelers made our list: Travelers has numerous agents available in Chicago for those who prefer to manage their insurance needs in person, but the carrier comes in below the segment average in the North Central region of the 2023 J.D. Power Auto Insurance Study, perhaps due to its limited digital tools.
Why Travelers is best for comprehensive coverage options: Travelers stands out for its extensive list of endorsements, making it a potential pick for drivers seeking a highly personalized insurance plan. With options like roadside assistance, new car replacement and accident forgiveness, Travelers caters to a variety of needs and preferences.
| Bankrate Score | 4.2 |
| J.D. Power | 806/1,000 |
| AM Best score | A++ |
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Why Erie made our list: For those who value customer service, Erie may be one of the best carriers out there. It came in first place in the North Central region of the J.D. Power Auto Insurance Study, reflecting its commitment to strong customer service. However, Erie’s limited digital management options and lack of telematics programs might be a drawback for some drivers.
Why Erie is best for rate stability: Erie could be well-suited for drivers who prioritize rate stability. The Rate Lock program prevents your rate from increasing unless you make certain policy adjustments, like adding a new vehicle or driver.
| Bankrate Score | 4 |
| J.D. Power | 844/1,000 |
| AM Best score | A+ |
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Why Mercury made our list: Mercury Insurance offers some of the most competitive rates in the Chicago area, making it an attractive option for cheap auto insurance in Chicago. Additionally, the carrier offers a long list of discounts, with potential savings for bundling, autopay, good students and more.
Why Mercury is best for rideshare drivers: Mercury Insurance could be well-suited for rideshare drivers due to its affordable and specialized coverage options. The carrier offers rideshare coverage for as low as $0.90 per day, but it does not offer gap insurance, so rideshare drivers with new cars may want to shop around.
| Bankrate Score | 3.8 |
| J.D. Power | |
| AM Best score | A |
Bankrate's trusted insurance industry expertise
Read our full methodologyBankrate’s editorial team, which includes licensed insurance agents with real-world experience, aims to provide accurate and up-to-date information to make informed decisions about your auto insurance. We gather the latest rate data from Quadrant Information Services by ZIP code and combine it with customer satisfaction reviews, financial strength ratings and an analysis of coverage options and discounts to highlight the top companies that meet diverse coverage needs.
46
years of industry experience
122
carriers reviewed
34.5K
ZIP codes examined
1.2M
quotes analyzed
The cheapest car insurance companies in Chicago
The cheapest car insurance in Chicago will depend on your personal rating factors, including your ZIP code, vehicle type, driving history and more. In Chicago, the urban environment and dense traffic can impact insurance rates, so looking for discounts, such as those for safe driving or bundling policies, could be beneficial. To help you start your search, we've compiled a list of the top five cheapest carriers, focusing on minimum coverage rates.
How much is car insurance in Chicago, Illinois?
The average cost of car insurance in Chicago varies depending on the level of coverage you choose. For full coverage, the average annual premium is $2,792, while the average annual premium for minimum coverage is $734. When compared to the state averages, full coverage in Chicago costs 34 percent more than the Illinois state average, and minimum coverage costs 32 percent more. Comparing personalized quotes is the most accurate way to understand what you might pay for coverage in the Windy City.
Chicago rates for teens
Car insurance for teen drivers in Chicago can be quite expensive due to their lack of driving experience and higher risk profile. Teens typically see higher premiums compared to older drivers. However, adding a teen to their parents' policy often results in more affordable rates than if the teen were to get their own policy. For teens under 18, they may have no choice but to remain insured with a parent or guardian. Teens looking for further savings may want to explore discounts for young drivers.
| Insurance company | 16-year-old* | 18-year-old* |
|---|---|---|
|
First Chicago
|
$696
|
$696
|
|
$862
|
$653
|
|
|
$942
|
$797
|
|
|
$1,173
|
$956
|
|
|
$1,192
|
$950
|
| Insurance company | 16-year-old* | 18-year-old* |
|---|---|---|
|
$2,779
|
$2,143
|
|
|
$2,866
|
$2,577
|
|
|
$3,997
|
$3,539
|
|
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$4,025
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$3,521
|
|
|
$4,170
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$3,509
|
Chicago rates for young drivers
As young drivers enter their 20s, they may see lower rates than in their teens, but this could be offset by the price jump often seen when moving off a parent's policy and onto your own. On average, 25-year-old drivers in Chicago pay 45 percent less for coverage than 20-year-old drivers (both on their own policies). Maintaining a clean driving record and shopping around may help young drivers find coverage that fits within their budget.
Chicago rates for adults
For adult drivers in Chicago, car insurance premiums can vary widely based on factors such as driving history, credit history and the type of vehicle insured. Typically, adults with clean driving records and good credit can find more affordable rates. Adult drivers who need multiple types of insurance policies (like home and auto) may be eligible for significant savings through bundling discounts.
Chicago rates for senior drivers
Senior drivers in Chicago often benefit from lower car insurance premiums due to their extensive driving experience and generally cautious driving habits. However, as drivers age into their 70s, their premiums might start to rise again due to age-related factors such as slower reaction times and higher susceptibility to injuries in accidents. Seniors can potentially lower their rates by maintaining a clean driving record, taking defensive driving courses and exploring discounts available for mature drivers.
The cheapest car insurance in Chicago by driving record
Your driving record is one of the most significant factors that can impact your car insurance rates in Chicago. Insurance companies typically view drivers with clean records as lower risk, which usually translates to lower premiums. Conversely, having violations such as speeding tickets, at-fault accidents or DUIs on your record can mark you as a higher risk, leading to higher rates. If you do have marks on your record, shopping around and comparing quotes from various insurers can help you find the best possible rates for your situation.
Car insurance with a speeding ticket in Chicago
Getting a speeding ticket in Chicago will likely affect your car insurance rates for three to five years. Speeding is linked to more frequent and severe accidents, making you a riskier driver to insure. On average, drivers in Chicago with a speeding ticket pay 23 percent more for full coverage than drivers with a clean record.
Car insurance after an accident in Chicago
Following a single at-fault accident, Chicago drivers pay 43 percent more, on average, for full coverage insurance than drivers with a clean record. If you're concerned about the potential impact of a future accident, you may want to consider accident forgiveness. This coverage add-on prevents a rate increase following your first at-fault accident, but it's not offered by all carriers.
Car insurance after a DUI in Chicago
Insurers see drivers with DUIs as high-risk, and typically charge much higher premiums to compensate for this added risk. Some carriers will not insure drivers with DUIs on their record, so requesting personalized quotes is a good way to assess whether you are eligible for coverage with a particular company. Insurers specializing in high-risk coverage might offer more competitive rates for a driver with a DUI.
| Insurance company | Average min coverage rate | Average full coverage rate |
|---|---|---|
|
$506
|
$1,859
|
|
|
$560
|
$1,902
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|
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$701
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$2,442
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|
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First Chicago
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$908
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$6,303
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$1,084
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$4,295
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Minimum coverage requirements in Chicago
In Illinois, drivers must meet the state's minimum auto insurance requirements to legally operate a vehicle. These requirements include:
- Bodily injury liability: $25,000 per person
- Bodily injury liability: $50,000 per accident
- Property damage liability: $20,000 per accident
- Uninsured motorist coverage: $25,000 per person for bodily injury
- Uninsured motorist coverage: $50,000 per accident for bodily injury
Drivers in Chicago should also be aware of specific metro considerations when selecting coverage. Given the city's dense traffic and higher cost of living compared to rural areas, it may be prudent to consider higher coverage limits than the state minimums. Higher liability limits can offer greater financial protection, especially considering the rising costs of medical care and vehicle repairs. Moreover, optional coverage types such as collision, comprehensive and underinsured motorist coverage, can provide added financial protection in the event of an accident or other incident.
Enforcement of these requirements is strict, with significant penalties for non-compliance. Driving without insurance can result in fines starting at $500, and repeated offenses or causing an accident without insurance can lead to higher fines, license suspension and the need to file an SR-22 certificate. Therefore, maintaining at least the minimum required coverage is crucial for staying compliant with state laws and protecting your financial well-being in the event of an accident.
Frequently asked questions
Methodology
Bankrate utilizes Quadrant Information Services to analyze July 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a single, 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2022 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket and single DUI conviction.
Age: Rates were calculated by evaluating our base profile with the ages 20-70 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.
Teens: Rates were determined by adding a 16- or 18-year-old teen to their 40-year-old married parents' policy. The rates displayed reflect the total cost of a driver this age added to their parents’ policy.
Bankrate Score
Our 2024 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.
Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.
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Cost & ratings 50%
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Coverage & savings 30%
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Support 20%
- Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, average quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the NAIC, were analyzed.
- Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
- Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.
