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Cheap Car Insurance Chicago

cheap car insurance chicago
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Chicago has been named the “Best Big City in the U.S.” by the Conde Nast Traveler Readers’ Choice Awards eight years in a row, and it isn’t hard to see why! From its top-notch museums like the Art Institute and world-class restaurants (plus deep-dish pizza) to its historic landmarks like the Willis Tower and storied sports scene (go Bears, Blackhawks, Bulls, Cubs, Fire, Sky, and White Sox!), the Windy City has everything people could ever want, with one exception.

Finding cheap car insurance in Chicago isn’t always easy.

Those shopping for Chicago auto insurance will be happy to hear the Prairie State doesn’t typically land on lists featuring states with the highest average auto insurance rates. However, tracking down cheap car insurance in Chicago presents significant challenges.

So, how can you find cheaper car insurance quotes? Keep reading to find out.

Chicago Car Insurance Coverage Requirements

Are you thinking about driving without insurance to avoid the high car insurance rates in Chicago? Please think again!

Driving without auto insurance in Chicago isn’t an option. You must maintain at least the minimum coverage required in Illinois with basic liability insurance.

Mandatory Car Insurance Coverage Levels in Chicago

According to the Illinois Department of Insurance, Chicago drivers must meet the following mandatory Illinois auto insurance requirements listed below.

  • $25,000 bodily injury liability per person

  • $50,000 bodily injury liability per accident

  • $20,000 property damage liability per accident

  • $25,000 uninsured motorist (UM) and underinsured motorist coverage (UIM) per person

  • $50,000 uninsured motorist bodily injury coverage (UM) and underinsured motorist coverage (UIM) per accident

Drivers in Chicago should strongly consider additional types of coverage since the state minimum amounts and liability limits don’t always provide enough financial protection for drivers and their vehicles.

Penalties for Driving Without Auto Insurance in Illinois

If you fail to purchase car insurance in Illinois, you risk dealing with more than the hefty expenses associated with most car accidents. You might also face strict penalties, including losing your license plates, if you’re pulled over and can’t provide proof of insurance.

These penalties may include:

  • Fines starting at $500 and going up to $1,000

  • Driver’s license and vehicle registration suspensions for at least three months

  • Up to one year in jail for repeat offenders

You might also be required to file an SR-22 certificate for up to three years. SR-22 insurance is mainly for high-risk drivers convicted of serious traffic offenses.

We offer Multiple Types of Insurance Options in Chicago, IL

Before searching for low-cost auto insurance, learn about the different auto insurance coverage options available to Illinois drivers.

Liability Coverage

This option covers the costs associated with medical bills and other damages when you cause an accident that results in other drivers sustaining injuries. These coverages are referred to as bodily injury liability and property damage liability.

Collision Coverage

A Collision policy option covers property damage to your vehicle caused by an accident, even if you were the at-fault driver in a car accident.

Comprehensive Coverage

A Comprehensive policy option covers vehicle damage caused by vandalism, theft, and other non-collision events.

Uninsured/Underinsured Motorist Coverage

This option covers medical costs and other damages from accidents involving uninsured or underinsured drivers, including hit-and-run accidents.

Other Auto Insurance Coverage Options

Do you wish to secure extra peace of mind when searching up for affordable car insurance in Chicago? Think about adding optional forms of auto insurance coverage listed below.

  • Medical payments coverage

  • Accidental death benefit

  • GAP Insurance

  • Rental car reimbursement coverage

  • Towing and Roadside Assistance

You may also want to explore commercial options if you use a vehicle for business purposes.

How Much Does Auto Insurance Cost in Chicago?

Unfortunately, average car insurance costs in Illinois have increased substantially in recent years. The average cost of full-coverage car insurance jumped from about $1,800 annually to more than $2,300 between 2023 and 2024 alone - and the average cost of auto insurance in Chicago is even higher than that!

As of early 2025, the average cost of full-coverage car insurance for Chicagoans has soared over $2,800, roughly 34% higher than the state average. Even minimum-coverage auto insurance in Chicago now costs over $800 yearly.

Which Factors Affect Car Insurance Rates in Chicago?

Finding a cheap car insurance policy in Chicago is challenging because many insurers charge Chicagoans more than drivers in other parts of Illinois.

However, several key factors, like your credit score, will determine your auto insurance rate. Keep these in mind as you shop for car insurance. The factors insurance companies use to determine car insurance rates are listed below.

Age and Driving Experience

Finding low-cost car insurance for young drivers is possible, but age will impact auto insurance premiums. The more experience you have with car ownership, the lower your insurance costs will be.

Driving Record

Does your driving record include multiple traffic infractions or serious driving-related crimes like DUI? Your driving history could affect your ability to find affordable auto insurance.

Vehicle Type and Safety Features

The type of car you drive and its safety rating impact auto insurance affordability. Remember this when applying for a car loan to finance a vehicle.

What Discounts are available for Car Insurance in Chicago?

Would you like to make your auto policy in Chicago even more affordable? Of course you do and taking advantage of the many auto insurance discounts available to drivers in Chicago will help.

Multi-Policy Discounts

Many auto insurance companies in Chicago provide other types of insurance policies, such as homeowners insurance, life insurance, and more. By bundling an auto policy with more policies, you can earn multi-policy discounts that could save you a significant amount of money as a vehicle owner.

Safe Driver Discounts

These discounts reward drivers with clean driving records who have avoided accidents, traffic tickets, etc. Use your excellent driving record to your benefit by inquiring about these discounts through different insurers.

Good Student Discounts

High school and college students who get good grades - Bs or better, in most instances - may qualify for good student discounts. These savings may work wonders for young drivers struggling to find cheaper car insurance.

Find the Cheapest Car Insurance Rates and Companies in Chicago

Recent AIPSO research reveals that Illinois has over 300 insurance companies that extend car insurance to Chicago drivers. Comparing their auto insurance rates is the best way to access the state’s cheapest rates.

With many Chicagoans scrambling to find the lowest auto insurance rates possible, Insurance Navy compares rates for you to help find the cheapest car insurance company for you.

We work with partners like Direct Auto Insurance, Next Insurance, Progressive Corporation, and The Hartford to find our customers the best car insurance rates.

Get a Free Car Insurance Quote in Chicago, Illinois, Today!

Insurance Navy simplifies shopping for cheap car insurance in Chicago by offering exceptional customer service and flexible payment options. Contact us at 888-949-6289, stop by one of our 25 Illinois locations, or get a Free Auto Insurance Quote Online. Our knowledgeable and licensed insurance agents are standing by to find you the most affordable car insurance premiums!

Chicago Car Insurance FAQs

How do I get the cheapest car insurance in Chicago?

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Compare multiple carriers, only choose the coverages you need, and adjust deductibles to balance risk and price. To get extra savings, stack eligible discounts like multi-car, homeowner, and telematics and keep a clean record. Insurance Navy can shop rates across our network and set up flexible payment plans to fit your budget.

How can Chicago drivers lower their car insurance quotes?

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Keep continuous insurance coverage, avoid tickets and at-fault accidents and consider raising your deductibles on comp and collision. Bundle your auto policy with renters or homeowners for a discount. Enroll in usage-based or telematics programs if available and complete an approved defensive driving course. Park your car in a garage and report your annual mileage for lower rates when getting a quote.

How does my driving history affect my Chicago car insurance rate?

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Recent violations, at-fault accidents, DUIs and insurance lapses will increase premiums because they indicate higher risk. A longer claim-free record gets better rates and often unlocks safe-driver discounts. Most rate increases fade as accidents fall off your record. Consistent and safe driving means lower costs over time.

What do I need to get a Chicago car insurance quote?

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Have your driver's license, the address where the vehicle is garaged and details for all household drivers. Provide us with each vehicle's VIN or year, make and model plus annual mileage and intended use such as commute, business or pleasure. Give us your current policy's limits and deductibles so we can match or improve your coverage for a lower rate.

Will my car insurance premium in Chicago change over time?

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Yes. Rates can change at renewal based on changes in your driving record, garaging address, vehicle, annual mileage and the broader claims environment. Discounts grow with safe driving history and rate increases fall off as violations expire. Marketwide factors like repair costs, medical inflation and theft trends also impact pricing.

Do you sell SR-22 insurance for Chicago/Illinois drivers?

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Yes. Insurance Navy issues policies that include an SR-22 and can file the certificate with the Illinois Secretary of State same day. We help high-risk drivers meet state requirements for license reinstatement and continued compliance.

Will Insurance Navy cover me if my policy was canceled before?

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Yes. We insure many drivers with prior lapses or cancellations and work to get you back to continuous coverage quickly. Our agents will help you choose state-compliant limits and set up a payment plan to prevent future gaps and guide you on steps to reduce premiums after a lapse.

Can I customize my auto insurance policy for driving in Chicago?

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Yes. You can choose your liability limits and add-ons like comp, collision, medical payments, uninsured or underinsured motorist, rental reimbursement, rideshare endorsements, glass and 24/7 roadside assistance. We'll right-size your deductibles and coverages to your vehicle, commute, parking situation and risk tolerance.

Why should Chicago drivers buy uninsured motorist coverage?

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Uninsured or underinsured motorist coverage protects you and your passengers if a driver with no or not enough insurance coverage hits you, including in hit-and-run situations. It helps pay medical bills and lost wages that would otherwise be out-of-pocket. Illinois requires uninsured motorist bodily injury so choosing higher limits and adding an underinsured motorist policy is smart for the best financial protection.

Do you offer 24/7 roadside assistance in Chicago?

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Yes. Roadside assistance is an optional add-on and is available 24/7 throughout Chicagoland and beyond. Services include towing, jump-starts, lockout help, fuel delivery and flat-tire changes. It's an inexpensive safety net for city commutes and winter weather.

Which Chicago neighborhoods and suburbs do you serve?

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We serve drivers in every Chicago neighborhood, including the North Side, West Side, South Side and the Loop. We serve Rogers Park, Logan Square, Pilsen, Hyde Park and Bronzeville. Our reach extends to the suburbs like Cicero, Berwyn, Oak Park, Skokie, Evanston, Oak Lawn, Schaumburg, Naperville, Aurora and Joliet. We also serve all of Illinois online, by phone and in person.

Do I need car insurance to legally drive in Chicagoland?

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Yes. Illinois law requires active liability insurance to operate a vehicle on public roads. Driving while uninsured can result in fines, license plate or registration suspension and SR-22 requirements. The state also does electronic verification so continuous coverage is key.

Do I have to accept an Insurance Navy quote?

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No. Quotes are free and non-binding until you decide to bind a policy by completing your application and paying the first premium. Rates are final after underwriting verification which may change the price based on your driver and vehicle information.

Please note: The above is meant as general information and as general policy descriptions to help you understand the different types of coverage. These descriptions do not refer to any specific contract of insurance and they do not modify any definitions, exclusions or any other provision expressly stated in any contracts of insurance. We encourage you to speak to your insurance representative and to read your policy contract to fully understand your coverages.