Although auto insurance policies can be costly, there are many ways to get the best car insurance deals in your local area. Many drivers are looking for affordable car insurance, especially in Chicago, where full coverage costs $2,150 per year and minimum coverage is $660 per annum. It is crucial to find coverage that suits your needs and protects your finances. Illinois has more than 8 million drivers.
Bankrate’s editorial team has compiled a list of the top Chicago car insurance companies to simplify the process. To help you choose the best car insurance in your area, we consider customer satisfaction, financial strength and coverage options.
Chicago’s best car insurance company
We first looked at the average premiums for major car insurers in Chicago before deciding on which companies to feature. This was done using Quadrant Information Services. We also evaluated each company’s J.D. We also evaluated each company’s J.D. Score. Each of the companies featured here has an above-industry-average score. Companies with high AM Best financial strength scores were chosen because they have a strong financial position to pay claims. We also reviewed the coverage options, discounts available, and policy features of each company.
These companies might be a good place for you to start if you’re looking for cheap Chicago car insurance.
Geico
Geico has the lowest minimum and full coverage premiums. It also boasts the highest official ranking by J.D. The North Central region has power. The company’s policies may seem basic, and there aren’t many options to customize your coverage. However, the low premiums and great customer service might still be worth a quote.
Geico is best known for its long list of discounts. It may be one of the longest in this industry. There are many discounts that you can get for being a federal worker, military member, owning a vehicle with safety features, or taking a driver education class. You may also save if you’re affiliated with certain groups like alumni associations.
Erie
Erie is another local carrier that offers coverage in the Chicago region. Its average premiums are among the best on our list. Erie is unique because it offers more coverage than other companies. This includes locksmith coverage, pet coverage, and personal property coverage.
Erie offers a wide range of discounts to help reduce your premium if price is still an issue. You can save more with the standard options like safety devices, young drivers and bundling insurance. But there are also unique savings opportunities. Erie Rate Lock is an example of a policy feature that stops your premium increasing if you make changes to your policy such as adding a driver or vehicle.
USAA
J.D. ranked USAA as the most favored company. The company has the most power in the North Central region. However, it is not eligible to be ranked because it sells only coverage to current military personnel, veterans, and their immediate families. A quote from USAA may be an option if you are eligible. USAA offers excellent customer service and a variety of optional coverages.
USAA offers discounts to help customers save money. You can get discounts for loyal customers, new cars and defensive drivers. USAA offers discounts for military personnel, such as savings on storage of your car at a military base or while you are deployed.
Grange
Grange’s premium for full coverage is the highest, but it is still significantly lower than Chicago’s. Grange offers coverage in only 13 states, including Illinois. Grange offers many options to customize your coverage. These include adding pet and mobile coverages, gap insurance, identity theft coverage, and original equipment manufacturer coverage.
Grange offers many discounts including discounts for multiple policies, multiple vehicles and safe drivers. Grange offers OnTrack, a telematics program. This program uses a mobile app that tracks your driving history to offer you a personal discount of up to 25%.
Auto-Owners
Auto-Owners, a regional insurance agency that offers coverage in only 26 states including Illinois, is called Auto-Owners. The average premiums for full and minimum coverage are lower than those in Chicago. Auto-Owners allows you to personalize your policy by adding options such as road trouble service, vehicle replacement, gap coverage, and diminished value coverage.
Auto-Owners many discounts may help you save. There are several ways to save: Sign up for a paperless plan, pay in full, get a quote before your effective date, or buy more than one type Auto-Owners insurance.
Chicago: Cheapest auto insurance
Chicago drivers pay more than drivers in Illinois and the United States for coverage. Chicago’s average minimum coverage premium amounts to $660 per year. Illinois drivers pay $442 annually, while the national average for Illinois is $565 per annum. Chicago’s average annual premium is $2,150 for full coverage. The average annual premium for Illinois drivers is $1,485 annually, while it is $1,674 nationally.
The heavy traffic in and around Chicago is a major reason for these higher premiums. The likelihood of an accident occurring is greater when there are more cars on the roads. This is why it’s not surprising that many drivers consider finding the best car insurance company.
Below is a table that analyzes Chicago’s cheapest car insurance rates from the biggest providers based on market share.
While it might be important to find a affordable company, this is only one aspect you need to consider when looking for coverage. If you’re in an accident, buying the cheapest policy you can afford could result in you not having valuable coverage. When shopping for coverage, you might also consider the company’s discounts, coverage features, and third-party reviews.
Chicago insurance requirements
Illinois state legislation requires that Chicago drivers purchase the minimum level of insurance:
- $25,000 per person for bodily injury
- $50k bodily injury per accident
- Property damage up to $20,000
- $25,000 bodily injury to a motorist who is not covered by insurance
- $50,000 bodily injury to an uninsured motorist per accident
Illinois law requires you to purchase underinsured motorist coverage if you buy uninsured motorist coverage with higher limits.
Although minimum coverage can be the most affordable type of coverage, insurance professionals recommend you buy higher limits. You are responsible for paying the excess out of pocket if you cause an accident that results in more damage and injuries than your insurance limits. Higher liability limits provide you with greater financial protection.
Minimal coverage does not cover damage to your vehicle. Full coverage is required, which includes comprehensive and collision coverages. Your lender may require that you carry full coverage if you have a loan, lease, or other financial obligation.
Chicago car insurance discount
Many insurance companies offer discounts that can help lower your premium. While discounts can vary from one provider to another, there are some options that are common in Chicago:
- Multi-policy Discount: You might be able to save on multiple policies from the same company like auto and home insurance.
- Safe driver discount: You may be eligible for a safe driver discount if you haven’t been in an accident in the past few years or received a ticket.
- Telematics discounts
- Discounts on billing: Signing up for automatic payments or paying in full could save you some money.
Each company will offer a different range of discounts, and each company’s savings percentages may differ. Talking to a representative or agent from your company is the best way to find savings opportunities.
Questions frequently asked
Which is the best auto insurance company?
Your specific needs will determine the best auto insurance company. The first step to shopping for insurance is usually to determine what you want from a company. Next, you can compare quotes from different companies to find the best fit for your needs. You can then compare quotes from different companies by looking at coverages and discounts as well as policy features. Third-party ratings are also available to help you choose the best option for you.
What happens if Illinois drivers are not insured?
Illinois drivers must have car insurance. Driving without insurance in Illinois is illegal. Driving without insurance can lead to fines, suspension of your license, and the impoundment of your car. You could be held responsible for any injuries or damages you cause if you are not covered by insurance. This could cause financial ruin and even lead to a lawsuit or seizure assets if you are unable to pay.
Why is Chicago car insurance more expensive than the rest of Illinois?
Chicago is a bustling area. Both the city’s roads as well as those in the surrounding areas are often congested and crowded. There is a higher chance of you getting into an accident when there are so many cars.
Car insurance is risk-based, therefore, insurance companies will charge you a higher premium to cover the higher risk. Avoiding accidents and tickets, using discounts, and choosing a company with low average rates may help to lower your premium.
