Best Cheap Car Insurance in Chicago | Bankrate (2024)

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Updated Jun 11, 2024

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.

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.

Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

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.

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.

Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

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.

Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

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.

Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

Methodology

Bankrate utilizes Quadrant Information Services to analyze June 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.

• Cost & ratings50%

• Coverage & savings30%

• Support20%

• 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 and Moody’s and factored a company’s corporate sustainability efforts.