Finding cheap car insurance in Chicago is easy enough when you know what to look for it and where to find it. By knowing what to pay for and what to save money on, you can find rates that are closer to what you want to pay for car insurance in Chicago and Illinois. Let’s get into everything you need to know in order to find the cheapest car insurance for you in Chicago.
Minimum Car Insurance in Illinois
If you’re looking for the absolute cheapest car insurance you can find in Chicago, look for a plan that offers only the bare minimum of the coverage you need in Illinois. The state requires you to have a minimum of liability coverage for you to drive legally. Your liability coverage in Illinois should offer:
- $25,000 in bodily injury coverage per person per accident
- $50,000 in total bodily injury coverage per accident
- $20,000 in property damage coverage
Keep in mind that liability car insurance only covers damages that other people experience in a collision you’re involved in. Your liability insurance does not pay for any bodily injuries or property damage that you experience. It’s there to financially protect both you and the other driver or property owner from the costs of damages.
Types of Insurance In Chicago
Liability coverage is all you need to drive legally in Chicago. Though this type of insurance is the cheapest option, it may not offer the level of coverage and protection you’re looking for. If this is the case, be sure to shop around for rates on collision and comprehensive coverage as well.
Collision insurance works similarly to liability insurance, but it covers your bodily injuries and property damage as well. If you get into an accident, collision insurance can help you pay for the costs to repair or replace your model. Collision insurance and comprehensive insurance are based on the actual cash value of your vehicle, so there are generally no pre-determined limits like there are with liability insurance plans.
Comprehensive insurance covers damage to your vehicle from non-collision situations. If your vehicle is damaged during severe weather, falling trees, theft, or certain other situations, comprehensive insurance should help you pay for the damages.
If you’re leasing your vehicle, you may be required to carry both comprehensive and collision insurance. Some automotive loans will require these types of insurance plans as well. If you have a plan that includes liability, collision, and comprehensive coverage, you have what’s known as a “full coverage plan.” Full coverage plans aren’t plans themselves, but rather a collection of these three types.
Where To Find Cheapest Car Insurance in Chicago
On average, drivers in Chicago pay $1,198 a year for minimum coverage, according to ValuePenguin. USAA had the cheapest rates, with an average of $556 per year, but this company is reserved for military members and their immediate families. For non-military drivers, the car insurance that offered the cheapest minimum liability plan was State Farm, with an average of $716 per year. COUNTRY Financial followed up to $838 per year on average for minimum coverage. Below are some of the cheapest car insurance companies in Chicago and the average rates they offer:
- USAA: $556
- State Farm: $716
- COUNTRY Financial: $838
- American Family: $889
- Progressive: $1,001
- Travelers: $1,308
- GEICO: $1,382
- Allstate: $1,690
- Farmers: $2,403
Factors That Affect Your Insurance
The average rates vary from driver to driver. Your rate may be lower or higher than these averages. Because many factors come into play when a car insurance company decides how much to charge you for insurance, it can be difficult to recommend one car insurance provider for all drivers. What may be the cheapest option for one driver may not be the cheapest option for you. This is why it’s important for you to get multiple quotes before you decide on your next car insurance provider.
Some of the factors that affect how much you’re going to pay for your car insurance include:
- Credit scores
- Driving history
- Vehicle make and model
Your location also plays a major role in determining your car insurance cost. If you’re looking for coverage in Chicago, it’s likely that you’ll pay more than the national or even state average due to the heightened risks of driving in highly populated areas.
How To Bring Down the Cost of Your Chicago Insurance
There are a few methods, tips, and tricks you can use to lower the cost of your insurance in Chicago. If you’re getting insurance soon, the best way you can find cheap plans is by requesting quotes from multiple companies. These quotes will give you an idea of the amount you’ll pay if you sign up for an insurance plan. Insurance companies will use your credit score to generate these quotes, but since they’re soft inquiries, you don’t have to worry about them bringing down your credit score. Ask for as many as you can until you’re comfortable making a decision.
As you collect your insurance quotes, keep in mind that different companies offer different services. This may not matter if you’re simply looking for the cheapest possible insurance, but if you want to enhance your protection, it’s something to take into consideration.
Other ways to reduce the cost of your insurance in Chicago include:
- Bundling. Many companies offer incentives for you to combine your insurance plans for your home, vehicle, and other properties in order to get you to sign up for more insurance through them. If you have multiples vehicles, try to use the same company to insure them to save money.
- Discounts. Ask your car insurance provider about discounts they offer that you might be eligible for. You might be able to get a discount for anything from being a student or military member to maintaining a safe driving record for a certain period of time.
- Drive safe. Generally, the longer you go without being involved in an accident, the lower your insurance rates will be.
- Increase deductibles. If you can, raise the deductible of your insurance plan to save money. The more you pay out of pocket when your insurance comes into play, the more you may be able to save on your monthly payments.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.