Best cheap home insurance in Chicago in 2025
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The best home insurance companies in Chicago
Home insurance in Chicago can be pricey, with an average cost of $2,554 for $300,000 in dwelling coverage. This is above the national average, which is $2,329 for the same amount of coverage. If you’re looking for cheap home insurance rates, you’ve come to the right place. Bankrate’s insurance editorial team, which includes licensed agents, took a close look at home insurance in Chicago, Illinois to find the best carriers.
We reviewed average rates, third-party reviews and more to determine the best cheap homeowners insurance in the Windy City. Based on our analysis, the top companies include USAA, Chubb, Allstate, State Farm and American Family.
Bankrate Score
Avg. annual premium
$300K dwelling coverage
JD Power
Bankrate Score
Avg. annual premium
$300K dwelling coverage
JD Power
Bankrate Score
Avg. annual premium
$300K dwelling coverage
JD Power
Bankrate Score
Avg. annual premium
$300K dwelling coverage
JD Power
Bankrate Score
Avg. annual premium
$300K dwelling coverage
JD Power
Bankrate's trusted insurance industry expertise
Read our full methodologyThe insurance market can be complicated, but Bankrate's insurance editorial team used our unique perspective to bring readers the information they need to make educated decisions when shopping for a policy.
78
years of industry experience
9
licensed staff
34.5K
ZIP codes examined
120
carriers reviewed
The cheapest home insurance companies in Chicago
Finding the cheapest home insurance in Chicago involves considering several factors, such as the specific risks associated with the city, including severe weather and crime rates. In Chicago, home insurance is 19 percent more than the Illinois state average. Because of this, homeowners should compare quotes from multiple providers to identify the most affordable rates from companies that offer the coverage they need.
Below, Bankrate identified some of the most competitive average rates for various dwelling coverage amounts.
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|---|---|---|
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$78
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$931
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$91
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$1,097
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Hastings Mutual
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$123
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$1,479
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$139
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$1,671
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Compare home insurance rates
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How much is home insurance in Chicago, Illinois?
The average cost of home insurance in Chicago is $2,554 per year for a policy with $300,000 in dwelling coverage. This cost is higher than the Illinois state average, which is $2,149 per year. Home insurance premiums can vary based on factors like claims history and home age and size, among other things, meaning your individual premium could be lower or higher than these averages. Comparing quotes from multiple providers can help you find the cheapest rates for your specific situation.
Chicago rates by credit tier
Credit history can significantly impact home insurance in Chicago, IL. Homeowners with poor credit scores are categorized as higher risk, which often leads to higher premiums. Conversely, those with good or excellent credit typically enjoy lower rates. For instance, the average cost of Chicago homeowners insurance for those with poor credit is 180 percent more than for homeowners with good credit. Improving your credit over time can be a useful strategy to help reduce your Chicago home insurance costs.
The table below shows how average home insurance rates in Chicago can vary based on different credit tiers.
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|---|---|---|---|---|
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$1,771
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$1,025
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$931
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$867
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$1,858
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$1,220
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$1,097
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$861
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|
|
Hastings Mutual
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$2,917
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$1,572
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$1,479
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$1,055
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$4,130
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$1,937
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$1,671
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$1,244
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|
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$4,419
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$2,630
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$2,376
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$1,860
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Chicago rates by home age
In Chicago, the age of your home can significantly impact your home insurance premiums. Older homes, particularly those with aging roofs and outdated materials, might cost more to insure due to the increased risk of damage and the higher cost of repairs or replacements. Homes built with older materials that are harder to source can drive up repair costs after a covered claim. Below, we’ve collected average rates from some insurance companies in Chicago to show how premiums can vary based on the age of the home.
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|---|---|---|---|---|---|
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$1,328
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$1,350
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$1,314
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$1,279
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$755
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$1,036
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$992
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$984
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$1,048
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$1,110
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|
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Hastings Mutual
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$1,686
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$1,686
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$1,686
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$1,688
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$1,377
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$1,929
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$1,929
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$1,929
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$1,916
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$1,443
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|
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$3,835
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$3,994
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$4,041
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$3,175
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$1,907
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Chicago rates by deductible amount
The cost of home insurance in Chicago, IL can vary significantly based on the deductible amount you choose. Generally, selecting a higher deductible means paying more out of pocket if you file a claim, but it can also lead to a lower annual premium. Opting for a higher deductible might be a good strategy to reduce your overall insurance costs. However, it requires finding a balance that best suits your financial situation; you should be able to comfortably pay the deductible out-of-pocket when filing a claim. The table below illustrates how average home insurance rates in Chicago can change based on different deductible amounts.
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|---|---|---|---|
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$828
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$828
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$669
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$1,047
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$1,004
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$833
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Hastings Mutual
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$1,479
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$1,479
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$1,395
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$1,592
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$1,572
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$1,373
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|
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$2,357
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$2,340
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$2,259
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Frequently asked questions
Methodology
Rates
Bankrate utilizes Quadrant Information Services to analyze May 2025 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates for our base profile are based on the following characteristics and coverage limits:
Dwelling coverage
$300,000Other structures coverage
$30,000Personal property coverage
$150,000Loss of use coverage
$60,000Liability coverage
$500,000Medical payment coverage
$1,000The homeowners also have a $1,000 deductible, a $500 hail deductible and a 2 percent hurricane deductible (or the next closest deductible amounts that are available) where separate deductibles apply.
These are sample rates and should be used for comparative purposes only. Your quotes will differ.
If otherwise specified, the base profile has been modified with the following homeowner characteristics:
Bankrate Score
Our 2025 Bankrate Score considers variables our insurance editorial team determined impact policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s cost of coverage, product availability, financial strength ratings, online capabilities and customer and claims support accessibility. We grouped these factors into three essential categories — cost and ratings, coverage and savings, and support — which we then weighted in a tiered approach.
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.
- Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, our team analyzed 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 National Association of Insurance Commissioners (NAIC).
- 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 a home 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 in a company’s corporate sustainability efforts.
