Table of Contents:
- Chicago Rates vs. State + National Averages
- Chicago Auto Insurance Costs by Insurer
- Chicago Auto Insurance Premiums by Driver Age
- Average Chicago Insurance Rates After a Violation or Accident
- List of Insurance Companies in Chicago
- FAQ Section
Chicago car insurance rates tend to be high because it’s one of the largest cities in the country. However, that doesn’t mean you can’t save a few dollars as long as you do a little research.
Chicago Rates vs. State + National Averages
With more than 8.7 million licensed drivers in Illinois, it’s vital for drivers to find affordable coverage that also gives them the protection they need on the road.
As the largest city in Illinois and the third most populated city in the United States, Chicago tends to have insurance rates higher than the state average. One of the reasons is due to location as the percentage of uninsured motorists and the rate of car thefts is high.
The average rate for full-coverage insurance is $2099 annually with the minimum coverage at $653 annually, according to Bankrate.com . That’s about $600 higher than the Illinois state average.
Chicago Auto Insurance Costs by Insurer
The price for car insurance in Chicago depends on several factors, such as the type of vehicle you’re driving and your driving record. In Illinois, insurance laws state that you must insure yourself against property damage and bodily injury. It’s up to you to decide if you want to add coverage for your vehicle, passengers, and yourself.
The top five cheapest insurance companies and their annual premiums for full coverage include the following:
- GEICO: $1038
- State Farm: $1220
- Mercury: $1379
- Erie Insurance: $1456
- USAA: $1547
Chicago Auto Insurance Premiums by Driver Age
Young and inexperienced drivers are typically more likely to be involved in vehicle accidents, so insurers oftentimes charge a higher premium to counteract the risk.
According to ValuePenguin, drivers under the age of 20 might pay as much as three times more than someone in their mid-30s. CarInsurance.com states that adding a 16-year-old girl to a Chicago auto policy will increase the rates by $2038 each year. Adding a 16-year-old boy increases the rates by $2671.
Average Chicago Insurance Rates After a Violation or Accident
If you receive a speeding ticket in Chicago, your car insurance rates will typically jump by an average of 21 percent or about $275 yearly, according to CarInsurance.com. Minor traffic violations, including speeding, usually stay on your record for about three years, so you can expect to see the rate increase when you renew your policy. Severe violations, such as a DUI, usually stay on your record longer.
For minor moving violations, such as running a stop sign or tailgating, can see your rates increase about 24 percent. For more severe violations, such as a DUI, your rates could increase by 86 percent.
If you’re involved in an accident, your Chicago insurance rates will increase by approximately 31 percent. The rate might increase more if you file the claim as your fault. However, if you have comprehensive coverage and file a claim, your rate usually won’t increase. The reason is that comprehensive claims involve damage done beyond your control, such as from weather or animal collisions.
List of Insurance Companies in Chicago
Some of the more popular car insurance companies in Chicago offer varying rates, so make sure you shop around to find the best prices and coverage for your needs.
Auto-Owners boasts superior customer satisfaction, though its premiums are slightly higher than the others listed. Available policies cover assistance to pay for rental cars and lodging if you’re involved in a car accident. The provider does offer a variety of discounts if you opt for paperless billing, have multiple policies, and install safety devices.
Even though Country Financial has slightly higher premiums, the carrier makes up for it by offering plenty of incentives such as trip interruption coverage and vehicle rental assistance. The company also offers numerous discounts.
Another affordable option in Chicago is Erie. It is one of the most highly rated insurance carriers when it comes to customer service. In addition to standard coverage, the company has numerous additional options including coverage for personal items, roadside assistance, and pet injuries.
GEICO has some of the lowest rates for minimum and full-coverage auto insurance. The company also boasts some of the strongest customer satisfaction in the North Central area, according to J.D. Power’s 2020 U.S. Auto Insurance Study. GEICO also has additional coverage options, including emergency roadside assistance and rental reimbursement coverages.
Grange Mutual offers competitive rates for its long list of coverage options, even if its financial strength and customer satisfaction aren’t as high as the others. You can receive coverage for pet injuries, identity theft, and roadside assistance. The company also has many discounts that you should look into.
FAQ Section
If you have further questions about car insurance coverage in Chicago, look through a few of these questions.
What Type of Insurance Coverage Must You Have in Chicago?
Illinois state law mandates that Chicago drivers must have the following minimum insurance coverage:
- Bodily injury liability: $25,000 per person and $50,000 per accident
- Property damage liability: $20,000
- Uninsured motorist bodily injury: $25,000 per person and $50,000 per accident
- Underinsured motorist coverage: $25,000 per person and $50,000 per accident
These coverages do not provide protection in other instances, such as roadside assistance or rental car reimbursement. As a result, you might opt for a full-coverage policy to customize your coverage needs. That type of policy includes collision and comprehensive coverage.
How Does the State Know You Have Chicago Car Insurance?
The Illinois Secretary of State’s office selects registered vehicles randomly and makes the owners prove they have insurance by filling out a questionnaire. If you fail to fill out the form or state that you don’t have insurance, your license plates will be suspended.
Can High-Risk Drivers Get Chicago Car Insurance?
If you’re a high-risk driver who was denied car insurance because of previous crashes, poor credit, or a spotty driving record, you can still get insurance. Check with the Illinois Automobile Insurance Plan to gain coverage.
It’s important to consider how much car insurance coverage you need while in Chicago. Consider your age and location to determine what types of policies you need. From there, make sure you compare rates among different insurance providers before making your selection.
Sources:
https://www.carinsurance.com/chicago-car-insurance-il/
https://www.bankrate.com/insurance/car/chicago/
https://www.moneygeek.com/insurance/auto/best-cheap-car-insurance-chicago-il/
https://www.nerdwallet.com/blog/insurance/cheapest-car-insurance-in-illinois-il/
https://www.valuepenguin.com/best-cheap-car-insurance-chicago-illinois
https://www.jdpower.com/business/press-releases/2020-us-auto-insurance-study
https://www.caranddriver.com/car-insurance/a35434289/geico-car-insurance/
https://www.caranddriver.com/car-insurance/a35620814/best-full-coverage-car-insurance/
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