Cheapest Car Insurance In Chicago, IL

State Farm is my choice for the best auto insurance company in Chicago, IL.

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Updated: 15 September 2023
Written by
Doug Schaffer

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Over 30 hours, our team reviewed 58 car insurance quotes from 19 different carriers in Chicago. After reviewing the results, State Farm and Auto-Owners were two of the top insurance providers in the region.

While State Farm was the best overall car insurance company, Auto-Owners was the most affordable for those with driving violations and those looking for minimum or full coverage.

Even though the average cost of coverage in Illinois was around $150 per month, the average monthly rates in Chicago were slightly higher, around $194.

Throughout the remainder of this guide, we’ll examine how different criteria, such as age, gender, location, and driving history, affect the monthly premium of Chicago drivers.

Cheapest And Best Car Insurance Companies In Chicago, IL 2023

Best Car Insurance, Chicago 2023

Compare The Cheapest Car Insurance Companies In Chicago, IL

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Our Methodology

To find the cheapest car insurance rates in Chicago, we analyzed findings from numerous car insurance review sites, some of which analyzed rates from public filings obtained by Quadrant Information Services. We also utilize the combined twenty-five years of experience from our team of insurance experts to evaluate each carrier.

  • 58 Quotes Analyzed
  • 19 Brands Reviews
  • 25 Years of Industry Experience
  • 30+ Hours of Research
  • It’s important to note that even though the rates listed in this guide are accurate, premiums shift daily and can fluctuate based on each driver.


    Quotes Analyzed


    Years Of Industry Experience


    Brands Reviewed


    Research Hours

    Reviews Of The Cheapest Car Insurance Companies In Chicago, IL

    Best Overall Rates In Chicago

    Overall Rating

    Key Statistics

    10/10 Affordability
    9/10 Customer Reviews
    9/10 Payouts
    9/10 Coverage Level

    Why We Like Them

    Sometimes choosing the most affordable option doesn’t mean receiving the best quality and service. However, State Farm has found a way to stay true to its customer-first approach while minimizing costs. On average, a car insurance policyholder with State Farm will pay around $900 for coverage.

    State Farm continuously ranks as one of Chicago’s most affordable car insurance options. It also has some of the highest scores for overall customer service ratings, and many people have had wonderful experiences when dealing with local agents.

    Anyone shopping around for an auto insurance policy should consider State Farm on their list.

    Benefits & Drawbacks

    • Exceptional customer service ratings
    • Affordable coverage options for most driving categories
    • Strong financial ratings on J.D. Power and AM Best
    • Local agents are available for in-person meetings
    • A limited number of customizable options are available
    • Lack of gap insurance for policyholders

    Cheapest Overall Rates In Chicago

    Company Average Rate Per Year
    State Farm $900
    Auto-Owners $914
    GEICO $1,212
    National General $1,368
    Travelers $1,644

    Cheapest Coverage For Motorists With Driving Violations

    Overall Rating

    Key Statistics

    9/10 Affordability
    8/10 Customer Reviews
    8/10 Payouts
    8/10 Coverage Level

    Why We Like Them

    Some insurance providers weigh driving violations more heavily than others, making it almost impossible to afford an auto insurance policy. However, Auto-Owners has kept its core value of providing cheap car insurance to nearly all drivers, including those with at-fault accidents or DUIs on their record.

    While each violation will impact the total amount you pay for coverage, many drivers can still find car insurance policies for around $1,500 per year through Auto-Owners.

    While Auto-Owners doesn’t rank the highest among the big insurance carriers regarding user experience, they do offer one-on-one consultations that many customers find beneficial.

    Overall, Auto-Owners is a great option for anyone with a few instances in their driving history.

    Benefits & Drawbacks

    • In-person meetings are available for anyone looking to form a relationship with an agent
    • Affordable rates for most drivers
    • Accident forgiveness and diminishing deductible are available for drivers that qualify
    • Limited to only 26 states
    • There currently isn’t a way to receive a quote online
    • The company doesn’t allow policy management online

    Info On The Category And How It Impacts Drivers

    One of the biggest factors insurance companies use when setting your monthly premium rate is past driving history. Those with a clean driving record are seen as low-risk drivers and receive the best rates, while others with speeding tickets, DUIs, and at-fault accidents are deemed “high-risk.”

    Unfortunately, drivers with instances in their driving past often receive much higher rates, making it hard to afford coverage. However, some companies like Auto-Owners are more lenient and provide perks such as accident forgiveness.

    Cheapest Rates For Motorists With Driving Violations In Chicago

    Company Average Rate Per Year
    Auto-Owners $1,507
    State Farm $1,740
    GEICO $2,316
    National General $2,556
    USAA $2,832

    Cheapest Full Coverage Rates

    Overall Rating

    Key Statistics

    9/10 Affordability
    7/10 Customer Reviews
    8/10 Payouts
    8/10 Coverage Level

    Why We Like Them

    Even though Auto-Owners aren’t available in every state, they are an excellent option for drivers in Chicago. The company offers some of the cheapest full coverage rates in the state while continuing to provide a great customer experience for policyholders who like having a local agent they can visit.

    While there isn’t a way to manage policies online, the company does have several perks that make up for the lack of convenience. One of the biggest advantages is the company’s accident forgiveness policy.

    Most full coverage plans offered by Auto-Owners will cost around $1,032 per year.

    Benefits & Drawbacks

    • A long list of discounts is available for qualifying policyholders
    • Ranked highly for their claims process by collision experts
    • Additional coverages like gap insurance, new car replacement, and diminishing deductible are available
    • Any driver needing an SR-22 will need to go through a different insurance provider
    • Coverage is only available in 26 states
    • There is no way to apply for coverage or manage policies online or with an app

    Info On The Category And How It Impacts Drivers

    While every driver has to have the minimum coverage mandated by the state, carrying full auto insurance is not required. However, there are benefits of paying a little more for the added protection. For example, with a comprehensive full coverage auto policy, you’ll have the following coverages:

    • Property damage liability
    • Bodily injury liability
    • Comprehensive and collision protection

    Cheapest Full Coverage Rates In Chicago

    Company Average Rate Per Year
    Auto-Owners $1,032
    State Farm $1,092
    GEICO $1,464
    Travelers $1,608
    American Family $1,913

    Cheapest Minimum Coverage Rates

    Overall Rating

    Key Statistics

    9/10 Affordability
    7/10 Customer Reviews
    8/10 Payouts
    8/10 Coverage Level

    Why We Like Them

    If you’re in the market for a minimum coverage plan, it’s important to find a reliable company to assist you should an accident or damage occur. With Auto-Owners, you’ll have access to a local agent who knows you personally. Auto-Owners is also one of the cheapest providers in the Chicago area.

    Most minimum coverage customers can expect to pay $840 annually with Auto-Owners.

    Finding another insurance carrier that delivers on customer experience and affordable coverage is challenging regarding a minimum auto insurance policy.

    Benefits & Drawbacks

    • Strong financial metrics from multiple independent agencies
    • Policies are managed through local agents, allowing for a close relationship between the company and policyholders
    • Cheap rates are available for most driving categories
    • There is no option to view or manage policies online or through an app
    • Coverage is only available in 26 states
    • The company doesn’t offer SR-22 filing at this time

    Info On The Category And How It Impacts Drivers

    While most people opt for a full coverage auto insurance policy, there are several reasons why a minimum coverage plan makes complete sense. For example, if you own multiple vehicles and rarely drive one, having that car or truck on a minimum plan is reasonable.

    Likewise, if you have a college student who plans to leave their car at your house while away at school, you could switch the coverage from full to minimum to save some money.

    Ultimately, a minimum coverage plan will allow you to drive a vehicle legally but will only provide you with some of the protection you need if there is an accident or wreck.

    Cheapest Minimum Coverage Rates In Chicago

    Company Average Rate Per Year
    Auto-Owners $840
    State Farm $872
    GEICO $1,195
    National General $1,313
    Erie Insurance $1,381

    Cheapest Rates For Young Drivers

    Overall Rating

    Key Statistics

    10/10 Affordability
    9/10 Customer Reviews
    9/10 Payouts
    8/10 Coverage Level

    Why We Like Them

    Before diving too far into USAA, it’s important to point out that the company will only offer coverage to active military members, veterans, and their family members. If you meet the criteria above, USAA should be one of the companies you include in your list of quote requests.

    The insurance provider consistently ranks as one of the top companies for customer service and experience. Along with excellent performance ratings, their rates are also among the most competitive in Chicago, with young drivers paying roughly $1,632 a year for coverage. They also have attractive benefits such as accident forgiveness and new car replacement.

    Benefits & Drawbacks

    • Ranked as one of the best for customer service and experience
    • Affordable rates for nearly every type of driver
    • Accident forgiveness and new car replacement are available
    • Coverage is only available for military members, veterans, and their families
    • There are no options to add gap insurance to an auto policy

    Info On The Category And How It Impacts Drivers

    Typically, insurance providers utilize driving history as a significant component of the premium determination process. However, using the same criteria for young drivers is challenging since they have less experience behind the wheel. Instead, many companies use data to predict how risky a teenage driver will likely be.

    As more time passes and additional driver data is available, many young drivers will notice their rates decrease as they continue to practice safe driving.

    Cheapest Rates For Young Drivers In Chicago

    Company Average Rate Per Year
    USAA $1,632
    Country Financial $1,764
    State Farm $1,779
    Travelers $2,408
    Progressive $2,484

    Cheapest Rates For Senior Drivers

    Overall Rating

    Key Statistics

    8/10 Affordability
    6/10 Customer Reviews
    7/10 Payouts
    7/10 Coverage Level

    Why We Like Them

    Even though Mercury Insurance doesn’t score as well as some other providers, they have the most affordable rates for seniors living in the Chicago area, with an average annual cost of $1,053. Mercury also offers additional perks and add-ons for policy members, including ride-sharing and mechanical breakdown coverage.

    Benefits & Drawbacks

    • Affordable coverage for senior drivers and drivers with a clean record
    • Additional coverage for ride-sharing drivers is available
    • Higher than normal amount of customer complaints
    • There aren’t many options to customize auto insurance policies
    • Coverage is only available in 11 states

    Info On The Category And How It Impacts Drivers

    Unlike younger drivers, senior drivers have spent many years behind the wheel and developed a lot of data for insurance companies to use when setting rates. If a driver has maintained a relatively clean driving record for most of their life, they are likely to have rates that are often below average.

    Some insurance companies will also give senior drivers a lower rate if they only use their vehicles sparingly. Since fewer opportunities exist for accidents, providers often see seniors as a “low-risk” class of drivers.

    Cheapest Rates For Senior Drivers In Chicago

    Company Average Rate Per Year
    Mercury $1,053
    Country Preferred Insurance $1,039
    GEICO $1,109
    Erie $1,257
    State Farm $1,271

    Average Cost Of Car Insurance In Chicago, IL

    Insurance Company Average Monthly Quote
    Auto-Owners $88
    State Farm $90
    Geico $124
    National General $139
    Travelers $141

    Average Cost In Chicago – By Age

    Age Group Average Monthly Rate
    Teenagers $337
    Under 25 $240
    25-29 $181
    30s $169
    40s $172
    50s $146
    60s $155
    70s $138
    80s $158

    Average Cost In Chicago – By Gender

    Gender Average Monthly Cost
    Female $91
    Male $93

    Average Cost In Chicago – Marital Status

    Marital Status Average Monthly Cost
    Single $92
    Married $86

    Average Cost In Chicago – By Accident And Violation History

    Violation/Incident Type Average Monthly Rate
    Clean Record $189
    Speeding Ticket $253
    DUI/DWI $376
    At-Fault Accident $270

    Average Cost In Chicago – By Credit Tier

    Credit Tier Average Monthly Rate
    Excellent $83
    Good $99
    Fair $142
    Poor $173

    Average Cost In Chicago – By Zip Code

    Zip Code Average Monthly Cost
    60657 $54
    60614 $54
    60608 $56
    60618 $57
    60647 $57
    60640 $57
    60632 $58
    60634 $58
    60629 $58
    60625 $58

    Minimum Car Insurance Requirements In Illinois

    The state requires drivers in Illinois to carry auto insurance coverage to operate a motor vehicle legally. Below are the minimum amounts of coverage you’ll need to purchase:

    • $25,000 for injury or death of one person in an accident
    • $50,000 for injury or death of more than one person in an accident
    • $20,000 for damage to the property of another person

    Failure to meet the minimum requirements could lead to fines of up to $1,000 or/and the revocation of your driver’s license for a set period.

    How To Buy Car Insurance In Chicago

    One of the most challenging parts of buying car insurance isn’t the actual purchasing of the policy — it’s understanding the steps you need to take to get coverage. If this is your first time buying coverage, it can feel overwhelming when it comes time to compare policy options.

    To help you better understand what to expect throughout the car insurance process, here are five tips/steps you’ll want to make sure you follow:

    • Step 1: Gather all important information ahead of time (EX: vehicle information, driver’s license numbers, policy member personal information, and driving history)
    • Step 2: Identify the amount of coverage you’ll need to comply with Illinois law
    • Step 3: Decide whether to purchase your policy online or through a local agent
    • Step 4: Compare at least three auto insurance quotes from different carriers
    • Step 5: Purchase your policy and update your previous car insurance company about the transition

    Factors That Impact Cost Of Your Car Insurance Policy In Chicago

    Many elements can ultimately impact your monthly car insurance premium. For example, the zip code you live in can significantly determine the rates you receive from insurance providers. If you’re currently located in a region with a higher average of auto theft or vandalism, you’ll likely pay more for coverage.

    Although location is an important factor car insurance companies look at, they’ll also consider the following items when setting your rates:

    • Driving history
    • Vehicle type
    • Average annual mileage
    • Credit history
    • Marital status
    • Age
    • Gender
    • State-mandated insurance requirements

    In The News

    • Illinois legislature is looking to outlaw insurance pricing criteria related to gender, occupation, and credit scores
    • A recent report concluded that Chicago has experienced the fourth-highest increase in auto insurance rates across the country

    Information About Chicago

    Chicago is the largest city in Illinois and the third most populous city in the United States, with over 2.7 million residents. The massive city is a hub of creative culture with a rich history of artists, musicians, and theatrical performers calling the region home.

    The Windy City, as it’s often referred to, is also home to a stunning architectural heritage consisting of some of the largest buildings in the world, including the Willis Tower, Tribune Tower, Wrigley Building, and the John Hancock Center.

    Car Insurance Discounts In Chicago

    Purchasing auto insurance in Chicago isn’t just about finding the lowest premium. Several companies offer a wide range of discounts that could help significantly reduce the amount you pay each month for coverage. Below are a few discounts you should look into before purchasing a car insurance policy:

    • Paid in full
    • Multi-vehicle
    • Multi-policy
    • Military
    • Senior
    • Student away
    • Good student
    • Safe driver
    • Defensive driving
    • Low mileage
    • Accident-free


    Why is Illinois car insurance so high?

    Even though many factors go into the total monthly premium drivers pay in Illinois, there is one element that has caused rates to increase significantly over the past few years — uninsured drivers. With nearly 15% of motorists driving without insurance, insurance companies are increasing premiums to help cover the cost of uninsured accidents.

    How much is car insurance in Illinois a month?

    The city you live in can impact your auto insurance coverage rates. However, on average most Illinois drivers can expect to pay around $150 monthly for a full coverage car insurance policy.

    Which company offers the cheapest car insurance?

    Drivers in Chicago looking for the cheapest car insurance should choose to purchase their plan through State Farm. The insurance carrier is more affordable than other options in the city, with an average annual cost of around $900.

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