Chicago has the third highest population among large cities in the U.S., based on Census Bureau data. With such a dense population, there is a higher risk of vehicle theft, vandalism and crashes for Chicago residents. Having the best car insurance in a city like Chicago is wise.

 

Finding Cheap Car Insurance in Chicago

You can buy only the required Illinois minimum liability insurance and drive legally in Chicago, but purchasing the minimum amount of Illinois car insurance might be insufficient. Consider buying more than the minimum required, and shop around for the best deal.

Cheap Chicago Car Insurance for Good Drivers

Travelers, Mercury and AAA (Auto Club Group) offer the cheapest car insurance in Chicago for good drivers. Travelers auto insurance is 44% cheaper than the average cost of Chicago auto insurance for good drivers, which is $2,442 per year based on the companies we analyzed.

Cheapest companies in Chicago Average cost per year in Chicago
$1,359
$1,509
$1,646
$1,675
$1,790
City average
$2,442

Cheap Car Insurance in Chicago for Drivers With a Speeding Ticket

Travelers, the Auto Club Group and Nationwide have the best car insurance rates for drivers with a speeding ticket on their records. All three companies are over $1,000 cheaper than the average cost of car insurance in Chicago for drivers with a speeding ticket, which is $3,245.

When you have a ticket on your driving record, it’s wise to compare car insurance quotes because of the wide range of rates offered by insurers.

Cheapest companies in Chicago Average cost per year in Chicago
$1,886
$2,027
$2,162
$2,229
$2,309
City average
$3,245

Cheap Chicago Car Insurance for Drivers Who Caused an Accident With an Injury

Travelers, the Auto Club Group and Erie offer the cheapest Chicago car insurance rates for drivers who caused an accident with an injury. Travelers’ car insurance costs are about $1,600 cheaper than Chicago’s average of $3,653 per year. Auto insurance rates for Auto Club Group and Erie are very competitive, costing only around $40 more per year than Travelers.

Cheapest companies in Chicago Average cost per year in Chicago
$2,052
$2,086
$2,089
$2,184
Secura Insurance
$2,572
City average
$3,653

Cheap Chicago Car Insurance for Drivers With a DUI

A DUI conviction can hike up your rates by 89% in Chicago. Mercury and Travelers have the lowest rates for Chicago car insurance for drivers with a DUI conviction. They’re both over 50% cheaper than the city average of $4,603 per year. Progressive is the third cheapest, with competitive rates of under $2,500 for Chicago drivers with a DUI.

Cheapest companies in Chicago Average cost per year in Chicago
$2,105
$2,166
$2,464
$3,324
Grange Mutual
$3,422
City average
$4,603

Cheap Chicago Car Insurance for Drivers With Poor Credit

Having poor credit can cost you an extra $1,600 a year, on average, for Chicago car insurance. Auto insurance companies believe research shows that drivers with bad credit are more likely to file claims.

Check out car insurance quotes from Travelers, Mercury and Secura if you have poor credit.

Cheapest companies in Chicago Average cost per year in Chicago
$2,148
$2,242
Secura Insurance
$2,351
$2,414
Grange Mutual
$2,501
City average
$4,050

Cheap Chicago Car Insurance for Adding a Teen Driver

Adding a teen driver to your car insurance in Chicago can be pricey. Parents can pay double when including a 16-year-old driver on their policy, on average. Our analysis of Chicago car insurance rates for parents adding a teen driver finds rates increased annually by an average of 131%. Shopping around for the most affordable price is a must.

Auto Club Group is the cheapest for Chicago parents adding a teen to their policy, among the companies we evaluated. Auto Club Group increases a parent’s Chicago car insurance policy by only a little over $1,000 (59%) a year when adding a teen driver. You can also check out the competitive rates offered by Nationwide and Mercury when looking for cheap car insurance for teens in Chicago.

Cheapest companies in Chicago Parents only per year Parents plus teen driver per year Average annual cost for adding teen in Chicago Average annual % increase for adding teen in Chicago
$1,746
2,768
$1,022
59%
$1,596
$2,817
$1,221
77%
$1,374
$3,326
$1,951
142%
$1,285
$3,368
$2,083
162%
$2,026
$3,852
$1,826
90%
City average
$2,455
$5,669
$3,215
131%

Cheap Chicago Car Insurance for Young Drivers Ages 18 to 25

Car insurance costs are usually very high for young drivers on their own policy. The average car insurance rate in Chicago for young drivers is more than $4,300 a year. If you comparison shop you may find much cheaper prices.

Secura and Travelers offer cheap Chicago auto insurance for young drivers, with average rates of under $2,400 per year. Geico is also worth a look for low rates.

Cheapest companies in Chicago Average cost per year in Chicago
Secura Insurance
$2,321
$2,397
$2,715
$2,931
$3,208
City average
$4,318

Cheap Chicago Car Insurance for Senior Drivers Age 65+

Auto insurance rates start to rise for senior drivers as their age creeps over 65. Geico has the best senior car insurance rates of the companies we analyzed, averaging $1,504 a year in Chicago. That is over $1,000 cheaper than the average car insurance cost of $2,510 for senior drivers in Chicago.

Travelers and Secura Insurance are other companies to check out for their cheap senior driver car insurance costs in Chicago.

Cheapest companies in Chicago Average cost per year in Chicago
$1,504
$1,517
Secura Insurance
$1,554
$1,573
$1,745
City average
$2,510

Defensive Driving Discount in Chicago

Illinois insurance companies offer a car insurance discount to customers age 55 and older who successfully complete an eligible defensive driving course to improve their driving skills. For instance, Geico offers a discount of up to 5% to Chicago drivers when they take an eligible course.

Required Minimum Chicago Auto Insurance

The foundation of auto coverage in Chicago is liability car insurance, which covers injuries and property damages to others resulting from an accident you caused. To comply with state laws, Illinois drivers must carry liability insurance in the following amounts:

  • $25,000 for injury/death of an individual
  • $50,000 for injury/death of multiple people
  • $20,000 for damage to someone else’s property

You may see these liability insurance limits written as 25/50/20.

While the state liability limits are a good start, you will generally want enough liability insurance to cover what can be taken from you in a lawsuit—for example, your savings and other assets like your home. If someone sues you after an accident, if you have sufficient insurance you won’t go belly up paying for a settlement, court costs and attorney fees.

Chicago drivers must also buy uninsured motorist coverage (UM) as part of a car insurance policy. This coverage pays for injuries you and your passengers suffer from an accident where an uninsured driver is at fault. Or if the driver has some insurance but not enough, underinsured motorist coverage (UIM) can cover your remaining medical costs (up to policy limits).

Chicago drivers must carry UM/UIM insurance in the following amounts:

  • $25,000 for bodily injury to an individual
  • $50,000 for bodily injury to multiple people

What Else Should I Have?

Consider full coverage car insurance, which includes optional coverage types that pay for damage to your own vehicle, regardless of fault.

Collision and Comprehensive Coverage

Collision and comprehensive insurance pay for damage to your car from a variety of events. They are often sold together. Both are typically required if you lease or finance your car.

  • Collision insurance. If your car collides with another vehicle or object, such as a fence, collision insurance covers the cost of repairs or pays your car’s depreciated value if it’s totaled, minus your car insurance deductible.
  • Comprehensive insurance. Comprehensive coverage pays up to the depreciated value of your car for damage caused by animal strikes, falling objects, fire, flooding, hail and vandalism. Comprehensive car insurance also covers vehicle theft. Like collision claims, a deductible also applies to comprehensive claims.

Medical Payments Coverage

Medical payment coverage (MedPay) pays small medical bills for you and your passengers if you suffer injuries from an auto accident, regardless of fault. Insurers usually sell MedPay in small amounts ranging from $1,000 to $5,000. If your health insurance limits are low or you have a high deductible, MedPay can help ease some of the financial burden of medical expenses after an auto accident.

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Other Optional Chicago Car Insurance Coverage

Accident Forgiveness

If you’re at fault in an auto accident, it’s common for your car insurance rates to increase at your next renewal. For this reason, some insurance companies offer accident forgiveness insurance, which prevents your car insurance costs from rising after an accident. Chicago car insurance companies that offer accident forgiveness include:

Gap Insurance

The maximum payout from collision and comprehensive insurance is the value of your vehicle the moment before the incident that totaled it, minus your deductible amount. If you lease or finance your car, you may owe more than its depreciated value. That means you would be responsible for paying the difference if your car is totaled. Gap insurance fills in the “gap” between the depreciated value and your remaining loan or lease balance.

New Car Replacement Coverage

New car replacement insurance gives you money to replace a totaled vehicle with a brand new vehicle of the same make and model. Rules vary by insurer, but generally your car must be only a year or two old to add on this coverage. Chicago car insurance companies that offer new car replacement include:

Rental Reimbursement Coverage

When your car needs repairs after a car crash or other problem covered by your policy, you may need another form of transportation to get around. Rental reimbursement insurance will cover the cost of a rental car or alternative transportation, up to policy limits.

Rideshare Insurance

If you drive for a rideshare company like Uber or Lyft, the company’s auto insurance will usually cover incidents that happen once you’ve accepted a ride or have a rider in your vehicle. Rideshare insurance helps fill a coverage gap that may exist when you have the app on and are waiting to accept a ride.

Roadside Assistance

If your car breaks down or you lock your keys inside, the best roadside assistance plans to pay for services to get you back on the road. This coverage pays for expenses like towing, locksmith assistance, battery jump and fuel delivery.

Summary: Required Chicago Car Insurance

Type of Coverage Amounts
Liability Insurance
  • $25,000 for injury/death of an individual
  • $50,000 for injury/death of multiple people
  • $20,000 for damage to someone else’s property
Uninsured/underinsured motorist coverage
  • $25,000 for bodily injury to an individual
  • $50,000 for bodily injury to multiple people
Collision insurance
Not required
Comprehensive insurance
Not required
Medical payment insurance
Not required

Can I Show My Insurance ID Card From My Phone?

Yes, as an Illinois driver, you’re legally allowed to use a digital insurance ID card as proof of insurance. Many insurance companies make it simple to access an insurance ID card through a mobile app or online portal. That way you don’t have to look very far to prove you have coverage if you can’t find the printed copy.

Factors Allowed in Chicago Auto Insurance Rates

When calculating an auto insurance rate, insurers usually review your driving record, claim history and the make and model of your vehicle.

Other factors Chicago car insurance companies may look at include:

  • Age and gender
  • Credit history
  • Education and occupation
  • Marital status
  • ZIP code
  • Vehicle use (such as personal or business) and annual mileage

Penalties for Driving Without Chicago Auto Insurance

Illinois uses an Electronic Liability Insurance Verification program to verify (twice a year) that all drivers meet the state auto insurance requirements. But, if you’re cited for driving uninsured—or the verification system discovers you’re driving without car insurance—you can face some hefty consequences, including an SR-22 insurance filing.

Depending on the number of infractions, penalties in Illinois can include:

  • Paying $500 to $1,000 if you’re a first-time offender. Drivers with more infractions may have to pay more.
  • Suspension of your driver’s license.
  • $100 fine to reinstate your driver’s license.
  • Suspension of your registration and license plates.
  • Additional $1,000 fine if your license plates are already suspended.
  • SR-22 form requirement.

When Can a Vehicle Be Totaled in Chicago?

If your car is severely damaged, your insurance company might decide if it’s totaled using a calculation called a total loss formula. A car in Chicago can be totaled by your insurance company if repair costs exceed 70% of the car’s fair market value.

Insurance companies can either replace the totaled car with a car of a similar make and model or provide a cash settlement comparable to the vehicle’s retail value.

Drivers who receive a cash settlement can receive reimbursement for sales tax, transfer and title fees if a new vehicle is purchased within 30 days of receiving the insurance payment.

How Much Is Car Insurance per Month in Chicago?

The average cost of car insurance in Chicago is $203 per month, according to Forbes Advisor’s analysis of rates for good drivers. Insurers designate those with a clean driving record—meaning no traffic violations or at-fault accidents—as good drivers.

Travelers has the cheapest overall Chicago car insurance, coming in at $113 a month. Mercury and the Auto Club Group are also worth checking out, with Chicago auto insurance rates under $140 per month.

Cheapest companies in Chicago Average cost per month in Chicago for good drivers
$113
$126
$137
$140
$149
City average
$203

Solving Insurance Problems

If your insurance company rejects a claim or doesn’t follow Illinois law, you can first contact your insurance agent. But if your attempts with your insurance company fail and there is no resolution, you can contact the Illinois Department of Insurance.

The department monitors all insurance activity in the state. It can answer consumer questions regarding insurance and it will take complaints, which it will investigate.

Methodology

To find the cheapest auto insurance companies in Chicago, we used rates from Quadrant Information Services, a provider of insurance data and analytics. Unless otherwise noted, rates are based on a female driver with a clean record insuring a new Toyota RAV4 with coverage of 100/300/100 ($100,000 in bodily injury liability coverage per person, $300,000 per accident and $100,000 in property damage liability), uninsured motorist coverage and any other coverage required in the state. The rate also includes collision and comprehensive insurance with a $500 deductible.

The companies evaluated for Chicago were Allstate, Automobile Club of Missouri, Auto-Owners, Auto Club Group, Geico, Country Financial, Erie, Farmers, First Chicago Insurance, Grange Mutual, Hanover, Hastings Mutual, Mercury, Nationwide, Pekin Insurance, Progressive, QBE, Rockford Mutual, Safe Auto, Secura Insurance, State Farm, Travelers and USAA.

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