Best Home And Auto Insurance In Illinois 2026

Multi-policy discounts can save Illinois homeowners an average of $410 a year. That matters in a state where premiums have been rising steadily, pushed up by severe weather that hits from multiple directions. Tornadoes, hailstorms, and straight-line winds hammer central and southern Illinois every spring and summer. Chicago and the collar counties deal with high auto rates driven by traffic density, theft, and expensive repairs.

Across the state, heavy rain and snowmelt cause flooding that standard home insurance policies don’t cover. I’ve been a licensed insurance agent for more than 15 years, and a bundle discount is one of the simplest strategies I recommend to Illinois homeowners looking to bring their total bill down without cutting coverage.

Best Home And Auto Insurance Bundles In Illinois

State Farm leads for overall bundle value in Illinois at $2,280 per year. That’s not surprising. State Farm is headquartered in Bloomington, and they’ve been writing policies in Illinois longer than just about anyone. Allstate, also Illinois-born (Northbrook), comes in slightly cheaper at $2,120 for a bundle, making them the better pick on price alone for the “best” tier.

Cheapest Home And Auto Bundles In Illinois

For the lowest bundle premium, State Farm wins at $1,912 per year. American Family and USAA are close behind, both under $2,100.

American Family has a solid presence in Illinois, especially downstate and in the western suburbs. Auto-Owners is another Midwest-focused carrier with a strong claims reputation. Both are worth getting quotes from, even if they’re not as well-known nationally.

Here is how the top providers compare:

Average Cost Of Home And Auto Insurance In Illinois

The average annual cost of home and auto insurance in Illinois is $3,074, about $976 less than the national average of $4,050. That statewide number hides a significant spread, though. Auto insurance in Chicago runs considerably higher than downstate, with Cook County zip codes often paying well above what drivers in Peoria or Springfield pay for the same coverage.

Home insurance varies too. Properties in tornado-prone central Illinois or flood-prone areas along the Illinois and Mississippi rivers pay more than homes in quieter parts of the state.

Home And Auto Insurance Rates In Illinois Without Bundling

Bundling usually saves money, but there are cases where buying separate policies from different carriers costs less.

The cheapest non-bundled combination in Illinois pairs auto insurance from Liberty Mutual with home insurance from American Family, at an average annual premium of $3,010.

Here is how other non-bundled combinations compare:

Biggest Home And Auto Bundle Discounts In Illinois

Discount percentages vary by carrier. Here’s what the major insurers offer Illinois residents:

• State Farm: The biggest discount in the state at 27% off combined home and auto premiums.
• Allstate: A 23% bundle discount for Illinois residents.
• Auto-Owners: An average discount of 11%.
• Progressive: Illinois residents get a 10% discount on average.
• USAA: Discounts of around 10% (available to military members and their families).

When Bundling Makes Sense In Illinois

The Savings Add Up

Bundling gives you three kinds of savings: the multi-policy discount, a single deductible when one event damages both your home and your car (a hailstorm that cracks your siding and your windshield in the same afternoon, for example), and the option for 12-month auto policies instead of 6-month terms.

But compare actual dollar amounts, not just percentages:

Allstate charges about $1,865 for homeowners insurance and $1,495 for car insurance in Illinois, totaling $3,360 a year for separate policies. With their 23% bundle discount, you’d pay roughly $2,585.

State Farm charges about $1,940 for homeowners and $1,560 for auto, totaling $3,500 separately. Their 27% discount brings that to about $2,555.

In this case, State Farm wins on both the discount percentage and the final dollar amount. But that won’t always be the case. Run the numbers with your own profile.

One Place For Everything

If you have a car, a house, and maybe a boat on Lake Michigan or a cabin in Galena, bundling puts all your policies with one carrier. One agent, one app, one phone call after a bad storm rolls through. That convenience matters when you’re filing claims and dealing with adjusters.

When Bundling Might Not Be The Right Call

Two scenarios where Illinois residents may do better with separate policies:

You Need Coverage Your Bundle Doesn’t Include

Flood insurance is the most common gap. Standard home policies in Illinois don’t cover flood damage, and the state has real flood exposure. The Illinois, Mississippi, Fox, and Des Plaines rivers all create risk in their corridors. Flash flooding in urban areas, especially in and around Chicago, is an ongoing problem. You’ll need a separate flood policy through FEMA’s National Flood Insurance Program or a private insurer.

Earthquake coverage is another one to think about. Southern Illinois sits on the New Madrid Seismic Zone, and the state also faces risk from the Wabash Valley Seismic Zone along the southeastern border with Indiana. Standard home policies exclude earthquake damage. If you’re in the southern third of the state, a separate earthquake rider is worth pricing out.

Hail and wind deductibles are also worth checking. Some Illinois policies carry a percentage-based wind/hail deductible instead of a flat dollar amount, which can mean a much bigger out-of-pocket cost on a large claim. Know what you’re buying.

Separate Policies Are Cheaper For Your Situation

The statewide average savings from bundling is $410, but your savings could be more or less depending on your profile. A driver with a spotless record might get a better auto rate from GEICO or Progressive than any bundle can match, while a separate home policy from Country Financial or Auto-Owners offers coverage that fits their property better.

Illinois has a competitive market with both national and regional carriers, so mixing and matching sometimes beats even a generous bundle discount.

Compare Home And Auto Insurance Bundles To Other States