Cheapest Auto Insurance in Illinois

Finding the cheapest car insurance in Illinois is simple if you have a good understanding of how top insurance companies calculate costs.

Knowing that where you live and what you drive influences your premiums can give you valuable insight into the underwriting process, helping you ask the right questions to find a lower-cost policy.

It also helps to shop comparatively and analyze individual company’s rates, coverage options, customer reviews, and financial strength before committing to an insurance provider.

While securing the lowest rate available always seems like a win, a low rate is less important than finding an insurance provider that can reliably pay out your claims in the event of an accident, and provide sufficient coverage for your driving habits.

The information below can give you a thorough understanding of some of the factors that insurance underwriters consider while determining your premiums, so that you can find the cheapest car insurance in Illinois with the best value.

How Much is Car Insurance in Illinois?

driving in illinoisWhen you’re shopping for car insurance, the first thing is to figure out if your quoted rates are reasonable and fair.

The best way to do this is to first research the average cost of car insurance for drivers throughout Illinois.

According to the National Association of Insurance Commissioners, average insurance rates in Illinois increased $81 between 2011 and 2015.

When you compare average rates in Illinois with those in surrounding states, you can see that Illinois is slightly more expensive than its neighbors.

However, average rates in this area of the Midwest are a fair bit below the national average.

Average Cost of Car Insurance in Illinois $884.56
Average Cost of Car Insurance in Missouri $872.43
Average Cost of Car Insurance in Iowa $702.46
Average Cost of Car Insurance in Wisconsin $737.18
Countrywide Average Cost of Car Insurance $1009.38

It’s important to keep in mind that many factors influence insurance rates.

Because of this, there’s considerable fluctuation in costs from driver to driver.

In addition to studying the car you drive and the drivers on your policy, your insurance company also looks at specific conditions in your geographic region.

Traffic Conditions

Throughout Illinois, traffic conditions vary greatly.

For example, Chicago is the third most densely populated city in the U.S., and as such, traffic density and accident rates in Chicago are notably higher than state averages.

On the other hand, traffic density and accident rates in Illinois’ rural areas can be expected to be well below state averages.

According to the NAIC (National Association of Insurance Commissioners) report, Illinois has a traffic density of 719,709 (calculated as the number of miles traveled against miles of highway throughout the state).

A total of 10,466 miles were traveled per registered vehicle on average throughout the state.

This figure is just under the national average of 12,010.

Fatal accidents in Illinois occur at a rate of 0.09 per 1,000 vehicles, which is also a little bit below the national average of 0.13 per 1,000 cars.

Vehicle Theft Rates

According to the Insurance Information Institute, Illinois has the seventh highest auto theft rate in the country.

The FBI reported an estimated 19,148 auto thefts in 2016, which average out to 155.5 per 100,000 residents, most of which occurred in metropolitan areas such as Chicago.

The National Insurance Crime Bureau’s Hot Wheels Report releases an annual list of the top ten most frequently stolen vehicles per state.

In 2016, Illinois’ most common theft targets were the Dodge Caravan and the Chevrolet Impala.

A total of 1,150 Caravans and 678 Impalas were stolen that year.

Other common targets for theft in Illinois include the Honda Civic, Toyota Camry, and Chevrolet Malibu.

If you’re looking to purchase a new vehicle, buying one that has considerably lower theft rates can help you save big on car insurance.

Population Density

In Illinois, the population density is an astonishing 231 persons per square mile.

Throughout the U.S., average population density is much lower at 90 persons per square mile.

86.9 percent of the residents in Illinois live in big cities—this is especially true of Chicago, but also affects other, smaller urban areas.

While population density doesn’t directly affect your insurance rates, a higher population density does directly lead to more traffic, more accidents, and a higher risk to insurance providers.

Living outside of large metropolitan areas where populations are lower and less dense may result in lower insurance premiums.

Disposable Income

States with higher average disposable incomes typically have higher concentrations of expensive vehicles.

Higher valued cars are costlier to replace and repair, which means that insurance companies are taking on more risk by writing policies for these vehicles.

In areas with higher disposable incomes and more expensive cars, insurance premiums tend to be slightly higher.

According to the NAIC, Illinois had an average per capita disposable income per person in 2014 of $42,256.

Throughout the U.S., the average per capita disposable income was $40,859 in 2014, which is slightly below Illinois.

Companies with the Cheapest Car Insurance in Illinois

Your first step when purchasing car insurance is to request quotes from a minimum of three providers and compare their policy offerings, financial strengths, and customer ratings.

Doing your research is the easiest way to protect yourself from a provider that can’t reliably pay out potential claims.

One of the simplest ways to find good insurance is by shopping with reputable companies, such as:

Progressive:

Progressive offers competitive rates and discount pricing on auto and home insurance policies.

It serves more than 16 million policyholders and consistently receives high ratings from past and current customers based on its speedy claims process and friendly service.

Progressive offers discounts for bundling policies, good student, and automatic payment methods.

Travelers:

Travelers offers its services in several countries throughout the world, and it has been operating in the U.S. since the mid-1800s.

Travelers has a strong financial rating, and the company supports energy efficient vehicles by offering discounts to hybrid and electric cars.

Its auto insurance includes features such as roadside assistance, 24/7 claims processing, and rental reimbursement.

Esurance:

Esurance is backed by Allstate and is well known for its forward-thinking, technology-focused insurance policies.

Esurance offers its customers a mobile app and an online account management tool that allows them to make changes to their policy whenever necessary.

Quote Wizard:

QuoteWizard isn’t an insurance provider, but is instead an online comparison tool that allows users to log on and find the best rates from top companies based on their specific situations.

It allows users to compare and review insurance providers and is well-known for being a simple way to find the cheapest car insurance in Illinois.

What is Mandatory for Car Insurance in Illinois?

Throughout the U.S., individual states are responsible for regulating their insurance industry.

Most set forth minimum auto insurance requirements for every driver and vehicle in the state.

According to the Illinois Department of Insurance, all drivers in the state are required to carry liability coverage and uninsured motorist coverage.

They must maintain the following minimum amounts:

Liability Insurance:

  • $25,000 for injuries per person
  • $50,000 for total injuries per accident
  • $20,000 for property damage

Uninsured/Underinsured Motorist Insurance

  • $25,000 per person
  • $50,000 total per accident

Drivers who do not comply with insurance requirements in Illinois may be subject to hefty fines or suspension of their license or vehicle registration.

The state requires, by law, that consumers present valid proof of insurance upon request to any police officer at a traffic stop or the scene of an accident.

How to Reduce the Cost of Your Car Insurance in Illinois

Car insurance can be a considerable expense, but it’s a necessary purchase.

Without reliable protection, you can not only be held responsible for property damage and injuries in the event of a car accident, which can cost tens of thousands of dollars; but you may also face high fines.

Purchasing car insurance protects you and your finances from hardship.

There are many ways to lower your monthly bill, including discounts and policy adjustments.

Below are some helpful tips to help reduce the cost of your auto insurance policy:

  • Bundle your policies with the same provider
  • Reduce optional coverage on vehicles that you don’t drive often or older cars
  • Reduce your mileage whenever possible
  • Increase your deductible
  • Check into ebills, auto pay, and pay in full options
  • Look into association or employer discounts

To make sure you take advantage of all the above discounts, keep the following information on hand when you purchase your policy:

  • Your full home address and detailed information regarding your parking habits
  • Your approximate insurance budget
  • Full names, dates of birth, and driving history for all drivers on your policy
  • School grades for any teen drivers on your policy
  • Detailed information about all vehicles on the policy including their makes, models, years, conditions, and vehicle identification numbers

What Can Increase the Cost of Your Car Insurance in Illinois?

Just as there are ways to reduce insurance rates, there are several elements that can increase rates.

These factors go beyond the conditions in the area you live and may be beyond your control, such as age and driver experience.

Driving Experience:

If you’re a new driver with little road experience, you are almost certainly going to pay higher insurance premiums.

Usually, age and experience go hand and hand, and most companies start to reduce their rates at age 25. Completion of driver’s training courses may help lower your prices a little, and some providers also offer an installed device that keeps track of safe driving habits and rewards policyholders accordingly.

Safety Ratings:

The Insurance Institute for Highway Safety (IIHS) and National Highway Traffic Safety Administration (NHSTA) perform yearly safety tests on hundreds of vehicles.

Vehicles that don’t cut it in safety tests, or those which haven’t been tested, may be subject to higher premiums.

To reduce rates, look for vehicles that scored high on crash tests and that come standard with beneficial safety features.

The Value of Your Vehicle:

Repairing and replacing expensive vehicles is costly.

If you’re insuring a high-value car, your insurance company is taking on a more significant risk when it writes your policy.

Choosing a lower-priced vehicle or a popular model with low repair rates may help keep your costs down.

Thanks to the above information, you should have a good idea of how insurers base premiums on the specific conditions of your geographic area.

Use the provided tips and suggestions to lower your monthly premium and help you score the cheapest car insurance in Illinois.

*While we make every effort to keep our site updated, please be aware that “timely” information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Huntley Wealth & Insurance Services and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser.