Is It Possible to Find Cheap Car Insurance in Chicago?
Last Updated on October 20, 2021
Drivers in Chicago often complain about the price of car insurance. Fortunately, it is possible to find cheap car insurance in Chicago.
By shopping around, comparing quotes, and finding an insurer that matches you and your vehicle, you can find the cheapest possible car insurance in Chicago.
Today, we’re explaining what impacts the price of car insurance in Chicago, whether or not it’s possible to find cheap car insurance in Chicago, and how to save hundreds per year on your Chicago auto insurance policy.
Table of Contents:
- Why Is Car Insurance Expensive in Chicago?
- Vehicle Theft Rates Are Lower in Chicago than Other Cities
- Population Density in Chicago Raises Car Insurance Premiums
- How to Get Cheap Car Insurance in Chicago: Tips and Tricks
- What’s the Best Cheap Car Insurance Company in Chicago?
- Personal Factors that Impact Car Insurance Premiums in Chicago
- Other Factors that Raise Car Insurance Premiums in Chicago
- Chicago Car Insurance Requirements
Why Is Car Insurance Expensive in Chicago?
There are several reasons why car insurance is expensive in Chicago.
The biggest reason, however, is that drivers in all big cities in America tend to pay more for car insurance than drivers in rural areas. Because Chicago is one of America’s largest cities and has a high population density, car insurance is more expensive than it would be in rural areas of Illinois.
Illinois has cheaper-than-average car insurance premiums compared to the rest of the country.
The average driver in Illinois pays around $1,213 per year for car insurance, which is more than $200 less than the nationwide average of $1,450 per year.
However, drivers in big cities always pay more for car insurance than drivers in rural areas. Drivers in Chicago continue to pay high rates for car insurance, while drivers in other parts of the state pay much cheaper rates.
Vehicle Theft Rates Are Lower in Chicago than Other Cities
Car insurance tends to be more expensive in big cities because of higher crime rates. Typically, cities have more population density and higher crime rates than rural areas, leading to higher insurance premiums.
That’s not the case in Chicago, however: Chicago has surprisingly low vehicle theft rates compared to other cities of its size. Chicago is rarely in the top 100 cities nationwide for vehicle theft.
Although certain neighborhoods, Chicagoland municipalities, and ZIP codes may have higher-than-average vehicle theft rates, Chicago’s vehicle theft rate is low, and that means cheaper insurance rates for you.
Population Density in Chicago Raises Car Insurance Premiums
Chicago is one of America’s largest cities. The Chicago metropolitan area is home to around 9.5 million people, making it the third-largest metro area in the country.
Despite having so many people, however, Chicago has a lower population density than New York City, Los Angeles, Miami, Boston, and other major metro areas.
In fact, the densest municipality in the Chicago area, Stone Park, is the 37th most densely populated city in the country, behind dozens of cities in the metro areas of New York City, Miami, San Francisco, Philadelphia, Boston, Miami, and even Louisville.
Other densely-populated Chicago-area cities include Cicero, Berwyn, and Elmwood Park, all of which are even further down the list.
Population density impacts car insurance premiums. Areas with denser populations tend to have:
- Higher crime rates
- Higher accident rates
- More traffic and more opportunities for collisions
All of these things can raise car insurance rates. Although Chicago is much more densely populated than other areas of the country, it has a lower population density than other major metro areas, which keeps car insurance rates more affordable.
How to Get Cheap Car Insurance in Chicago: Tips and Tricks
Finding cheap car insurance in Chicago is easier than you think. Follow these tips to find the cheapest car insurance for your unique needs in Chicago.
Get Multiple Quotes from Small and Large Insurers: You live in one of the biggest metro areas of the country. Every major insurance company in America serves the Chicago area. Plus, you have smaller, local insurers as well, including top-rated options like Pekin. Get multiple quotes from small and large insurers in your area. Some insurers prefer certain drivers – like older drivers. Others prefer certain vehicles – like new vehicles with modern safety features. By shopping around, you can find the perfect match.
Adjust Coverage: Some drivers buy minimum liability insurance for a few hundred dollars a year in Chicago. Others buy full coverage car insurance for a few thousand dollars per year. You can adjust coverage to match your needs, risk tolerance, and vehicle. If you have an older, used vehicle, for example, then you may be able to drop collision and comprehensive coverage to save money.
Take Advantage of Discounts: Every insurance company in Chicago offers discounts. You can get discounts for bundling auto insurance, being a safe driver, getting good grades at college, and driving fewer miles per year than average, among other factors.
Sign Up for Driver Tracking: Most major insurers now offer a driver tracking (telematics) program. You join the program, then let the insurer’s mobile app track your driving habits. The app tracks your speeding, acceleration, average mileage, and more, then provides customized car insurance rates based on this data. A good driver in Chicago could save 30% by signing up for driver tracking.
What’s the Best Cheap Car Insurance Company in Chicago?
Certain Chicago insurance companies are known for offering cheaper insurance than others. By shopping for car insurance from these providers, you can pay lower-than-average car insurance premiums.
The best cheap car insurance companies in Chicago include:
- GEICO: $366 per year for minimum liability insurance in Chicago
- Pekin: $421 per year for minimum liability insurance in Chicago
- Erie: $499 per year for minimum liability insurance in Chicago
- USAA: $502 per year for minimum liability insurance in Chicago
- State Farm: $639 per year for minimum liability insurance in Chicago
- Progressive: $645 per year for minimum liability insurance in Chicago
The rates above assume you’re an average, middle-aged driver with a proven history of safe driving. Some drivers will pay even less for car insurance in Chicago, while others will pay slightly more.
Personal Factors that Impact Car Insurance Premiums in Chicago
Personal factors could raise or lower car insurance premiums significantly in Chicago. Other factors that could raise your car insurance premiums include:
Credit Score: Illinois allows insurers to use credit scores to calculate insurance rankings. If you have a low credit score, you could pay thousands more per car insurance than drivers with a high credit score.
Driving History: Drivers with a speeding ticket, DUI, at-fault accident, or other incidents will pay more for car insurance than drivers with a clean record.
Age and Gender: Insurers use your age and gender to calculate insurance premiums. Young men tend to pay higher insurance premiums than young women, while middle-aged and older men tend to pay lower insurance premiums than women of the same age.
Vehicle Type: Insurers consider the crash safety rating, accident statistics, and other data for your vehicle when assigning rates. Based on your vehicle make and model, you could pay significantly more or less for car insurance in Chicago.
Other Factors that Raise Car Insurance Premiums in Chicago
Chicago has several unique factors that raise car insurance premiums across the city, including:
Winter Driving: Winter makes driving hazardous in Chicago. It increases the risk of accidents, and insurers pass this higher risk to policyholders through higher insurance premiums.
High Traffic Density: Chicago is the third-largest metro area in America. With a higher population comes higher traffic density. Higher traffic density is associated with higher accident rates.
Rising Repair Costs: Repair costs rise every year in Chicago. It costs more to repair a car today than it did five years ago. Insurers pass these higher costs to policyholders.
Rising Medical Costs: Insurers may need to cover medical bills for drivers, passengers, and pedestrians after an accident. Medical costs rise sharply every year, and insurers pass these higher costs onto policyholders.
Chicago Car Insurance Requirements
Chicago has the same car insurance requirements as the rest of Illinois. Per state insurance law, drivers in Chicago must carry the following minimum coverage options:
- $25,000 of bodily injury liability coverage per person
- $40,000 of bodily injury liability coverage per accident
- $50,000 of property damage liability coverage
Insurers express this policy as a 25/40/50 plan. Many drivers buy extra coverage for added protection and peace of mind. However, any policy that meets these minimum requirements is compatible with state insurance laws.
Final Word on Cheap Car Insurance in Chicago
It’s possible to find cheap car insurance in Chicago.
By shopping around, comparing quotes, and finding the best car insurance to match your unique needs, you can find the best cheap car insurance in Chicago.
