Cheap Car Insurance Chicago

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 coverage per person
• $50,000 bodily injury liability coverage per accident
• $20,000 property damage liability coverage per accident
• $25,000 uninsured motorist coverage (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 minimum coverage 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 driving offenses.

We offer Multiple Types of Insurance Options in Chicago, IL

Before searching for cheap car insurance in Chicago, learn about the different auto insurance coverage options available to Illinois drivers.

Liability Insurance 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 coverage and property damage coverage.

Collision Insurance Coverage

A Collision coverage 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 Insurance Coverage

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

Uninsured/Underinsured Motorist Insurance Coverage

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

Other Auto Insurance Insurance Coverage Options

Do you wish to secure extra peace of mind when signing up for cheap car insurance in Chicago? Think about adding optional forms of auto insurance coverage, such as:

• Medical payments coverage
• Accidental death benefit coverage
• Gap coverage
• Rental car reimbursement coverage
• Towing coverage

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 cheap 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 driving infractions or serious driving-related crimes like DUI? Your driving history could affect your ability to find affordable auto insurance in Chicago.

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 auto coverage 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 discounts may work wonders for young drivers struggling to find cheap car insurance in Chicago.

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 cheapest 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 cheapest car insurance premiums!

FAQs

Still have questions about cheap car insurance in Chicago? Look for answers below.

Who Has the Cheapest Chicago Auto Insurance?

The cheapest Illinois car insurance doesn’t come from one specific insurance provider. Each available insurer provides drivers with their lowest rates based on the criteria they use to calculate quotes, so drivers should compare quotes from different insurance companies before choosing which one to proceed with.

Does Low Cost Car Insurance Offer Enough Coverage?

Depending on your circumstances, cheap car insurance in Chicago may offer enough coverage. Consider incorporating additional coverage options into an auto insurance policy to enjoy more peace of mind.

Which Affordable Car Insurance Policy Is Right for Me?

Only you can decide which cheap car insurance in Chicago is right for you. Get quotes from the leading auto insurance agencies and compare them to see what each offers.