Where you live and the vehicle you drive have a big impact on Illinois insurance rates. Shopping for the best car insurance in Chicago means comparing and analyzing quotes, ratings, and reviews from top companies throughout the state.
It’s also important to opt for an insurance company that offers a reliable and quick claims process while providing you with the right coverage for your needs, all at a rate that meets your budget.
Insurance shopping should be less about asking “How much is car insurance in Chicago?” and more about asking “Who provides the best car insurance in Chicago?”
There are several elements that insurance companies evaluate to determine your rate. Your age, gender, driving record, and vehicle are all considered. However, what you may not realize is the role your place of residence plays in calculating your insurance price.
Understanding the way your geographic location affects your insurance policy is one of the best ways to determine if the provider is charging you a fair price.
The information below offers a thorough explanation of exactly how car insurance rates are calculated in Chicago and throughout the state of Illinois. It’s designed to help you find the best insurance policy at the lowest possible rates.
Average Cost of Car Insurance in Chicago
A good way to figure out if the carrier is quoting you a fair insurance rate is to understand the average cost of car insurance for drivers throughout Chicago.
According to the National Association of Insurance Commissioners’ Report, average insurance rates throughout Illinois increased by $81 between 2011 and 2015.
When comparing premiums in Chicago and throughout Illinois with those in nearby states, you can see that Illinoisans pay higher rates. However, when compared to the countrywide average, insurance in Illinois is slightly less.
|Average Cost of Car Insurance in Chicago||$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|
There are several factors outside of your vehicle and driving history that affects your insurance rates, including the specific conditions in your geographic area.
Generally, insurance companies analyze traffic condition data on a state level. However, Chicago is a large city with a high population density.
As such, vehicle density and accident rates are higher than throughout many other parts of Illinois. Your insurance provider uses this factor—among many others—to determine your rate.
According to the Illinois has a traffic density of 719,709, which refers to the number of miles traveled against miles of highway throughout the state.
When comparing vehicle miles per registered vehicles, calculated as the number of miles traveled against the number of registered vehicles in Illinois, the result is 10,466, just below the national average of 12,010.
Fatal accidents in Illinois occur at a rate of 0.09 per 1,000 vehicles, which is a little below the national average of 0.13 per 1,000 vehicles.
Metropolitan areas such as Chicago are more vulnerable to high traffic density and fatal accident rates, which can result in increased insurance costs for those living in the area.
Vehicle Theft Rates
According to the Insurance Information Institute (III), Illinois ranks seventh for the highest number of auto theft rates.
In Illinois’ metropolitan areas, including Chicago, an estimated 19,148 auto thefts occurred per 100,000 residents in 2016, which is exponentially higher than the national average of 236 auto thefts per 100,000 residents.
The National Insurance Crime Bureau’s Hot Wheels Report indicates that the Dodge Caravan and Chevrolet Impala are the most stolen vehicles in Illinois. In 2016 alone, 1,150 Dodge Caravans and 678 Chevrolet Impalas were stolen throughout the state.
Other common theft targets in Illinois include Honda Civic, Toyota Camry, and Chevrolet Malibu. Shopping for a vehicle that has lower theft rates is a good way to keep your insurance costs down.
Although population density doesn’t have a direct effect on the price of insurance, it does affect the number of vehicles in a given area.
Theft rates and accident rates may both be higher in that area as a result, and therefore, insurance rates are generally higher too.
Illinois’ population density is 231 persons per square mile, much higher than the national average of 90. Chicago is the third most populous city in the U.S., and according to the NAIC, 86.9 percent of Illinois’ residents live in the larger cities.
Outside of metropolitan areas like Chicago, the population is far less dense, so living in a rural area may result in a lower insurance rate.
Another factor that affects insurance rates indirectly is disposable income. Cities and states with higher average disposable incomes generally have more registered vehicles with high values, which require more coverage, causing drivers in those areas to pay higher insurance rates.
According to the NAIC, the per capita disposable income per person in 2014 was $42,256 throughout Illinois, slightly above the countrywide average of $40,859. Keep in mind that this is a state average, and Chicago’s disposable income may be slightly higher with corresponding higher insurance premiums.
Companies with the Best Car Insurance in Chicago
Shopping for car insurance is something that requires research and time. It’s important to compare quotes, coverage options, financial strengths, and reviews from at least three companies to find the best car insurance in Chicago.
While it’s sometimes tempting to purchase insurance from the cheapest company, it’s important to make certain that the coverage you’re purchasing meets your needs and that the company has a good reputation.
The best way to find good coverage is to shop from well-known, leading insurance companies such as:
Liberty Mutual Insurance: Liberty Mutual is one of the largest insurance groups in North America. It has been operating throughout the U.S. since 1912 and has since expanded to offer coverage in several countries throughout Asia and Europe.
It is the parent company to several other insurers, including American First Insurance and Safeco. It is well known for its RightTrack programs, which rewards policyholders with discounted rates for good driving.
Progressive Car Insurance: Progressive is one of the most recognizable names in the insurance industry.
It’s known for its catchy advertising campaign featuring “Flo,” and it offers home, auto, and RV insurance with discounted rates to those who bundle policies.
Esurance: Operating under the Allstate umbrella, Esurance boasts easy auto and home insurance policies and account management via a smartphone app that monitors driving habits and is designed to assist policyholders with making minor policy changes and filing claims.
MetLife Insurance: MetLife Insurance is known for its convenient claims process and prides itself on providing fantastic customer service.
The company offers business and individual insurance options, as well as employee benefit programs.
Allstate: Allstate has been selling insurance in America since 1931 and has since expanded to offer insurance on a global scale.
It’s well-known for rewarding policyholders with discounted rates for safe driving that’s monitored through the Drivewise® app.
USAA: USAA offers home, life, and auto insurance exclusively to military members and their families. Its auto insurance offering covers a broad spectrum of vehicles including RVs, boats, and motorcycles.
Travelers Insurance: Travelers writes insurance policies for both business and individuals. It operates in five countries throughout the world and is the second largest insurance company in North America.
It’s known for offering a wide variety of policy options and having high customer satisfaction ratings.
What is Mandatory for Car Insurance in Chicago?
Throughout most states and cities, there are minimum auto insurance requirements. Chicago is no different. According to the Illinois state law, all vehicles and drivers must have liability coverage and uninsured motorist coverage.
Certain limits are set out by each state regarding the required coverage for each driver. In Illinois, these minimums are as follows:
- $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 must agree to maintain these insurance minimums to register their vehicle in Illinois.
How to Reduce the Cost of Your Car Insurance
It’s crucial to buy car insurance to protect yourself and your assets from costly repairs and medical bills in the event of an accident. Although car insurance can seem like a big expense, it doesn’t have to break the bank.
Once you’ve found the best car insurance in Chicago, you can follow these tips from the Insurance Information Institute to try to qualify for a lower rate.
- If possible, increase your deductible
- Reduce your coverage on older vehicles
- Bundle your home, auto, and life insurance policies
- Maintain a high credit score
- Reduce your mileage whenever possible by taking public transit or carpooling
Most top insurance companies offer discounted rates to policyholders to reward them for good driving habits, accident-free periods, safety features on their vehicles, or automatic payment methods.
When you’re shopping for insurance, be sure to have the following information handy so that you get an accurate quote that reflects any available discounts:
- Vehicle information for all vehicles you’ll be insuring including the make, model, year, VIN, usage habits, safety features, and anti-theft devices
- Personal information for all drivers in your household including the school grades for any teen drivers in your household (to take advantage of good-student discounts)
- Household information including your complete address, information on where you park your car, an estimate of the assets you’d like coverage for, and your budget
What Can Increase the Cost of Your Car Insurance in Chicago?
Just as there are several ways to decrease your insurance rates, there are also factors that can contribute to an increase in cost. While some of these are out of your control, there are several ways to minimize the effect these factors can have on the price of your insurance.
Safety Ratings: The NHSTA and the IIHS evaluate hundreds of vehicles each year based on safety test performances. Shop for vehicles with high safety standards and excellent crash test results to lower insurance rates.
Overall Vehicle Value: If you’re driving a vehicle with a high overall value, your insurance rate is likely much higher than if you were driving a less expensive car. To save on insurance in the future, opt for a vehicle with a lower price point.
Driver Age: If you’re insuring a teen driver or senior driver on your policy, you’re likely paying a higher rate. It’s worth noting that teens and seniors who complete defensive driving courses may become eligible for reduced rates.
After reading the article above, you should be able to effectively answer the question, “How much is car insurance in Chicago?” You should also be able to evaluate quoted rates with confidence so that you can purchase the best car insurance policy for you.*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.