Car insurance in Chicago: Cheapest insurance and average rates

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Car insurance in Chicago costs $1,930 per year for full coverage – $161 per month. In 2024, Progressive offers the cheapest car insurance policy at $114 per month.

Chicago is home to more than 2.67 million residents, which makes it the third-most populous city in the U.S. Within the metro area, which includes Naperville and Elgin, commuters lose 91 hours to commuting traffic each year; that’s ninth in the nation. 

Below, we explore what you need to know about the cheapest car insurance in the Windy City and how much car insurance you need in Chicago, Illinois.

How to find the best car insurance in Chicago

Finding the best car insurance in Chicago starts by comparing quotes from multiple car insurance companies. If you get quotes from at least three different companies, you should be well on your way to finding the most affordable option. But don’t forget to ask about any discounts you qualify for before finalizing your policy. 

Cheapest car insurance company in Chicago

Chicago drivers tend to find the cheapest car insurance options with Progressive. But other affordable options include Geico, Auto-Owners and Erie Insurance. 

The table below breaks down the average annual insurance premiums by company for Chicago drivers with varying levels of coverage.

How much is car insurance in Chicago per month?

Chicago drivers may find different rates based on their individual situation. But on average, you’ll pay $47 monthly for state minimum coverage in Chicago. Drivers who choose more coverage pay more. The average cost of a full-coverage policy is $161 per month. 

The table below illustrates the average cost Chicago drivers pay for two levels of car insurance from different insurers.

How do rates in Chicago compare to other large cities in the U.S.?

Location is a big factor in your car insurance rates. Urban drivers generally pay more than rural drivers for car insurance due to higher rates of theft, accidents and vandalism. But average car insurance costs can still vary dramatically across major cities.

James Brau, professor of finance at Brigham Young University, says that the more risk the insurance company must bear, the higher the premium they must charge to stay in business and make a profit. 

“Large cities tend to present more risk to the insurance companies than rural areas. Large cities have more people, more cars and higher chances of getting in wrecks or having other damage done to vehicles,” Brau says. “As such, insurance firms must charge higher premiums in cities. Cities that are relatively more dangerous, in turn, must charge higher premiums than cities that are not as risky. Insurance companies study damage losses per metropolitan area and assign premiums depending on the number of wrecks in an area.”

See how much you can expect to pay for car insurance in several major U.S. cities in the table below.

Here’s what you need to know when driving in Chicago

Based on the number of hours Chicago drivers spend in traffic each year, it’s fair to say you’ll face some congestion when driving in Chicago. 

Here are some tips to help you navigate the city:

• Use a map app to avoid traffic whenever possible. 
• Traffic is the most congested between 6 a.m. and 8 a.m. and 4-6 p.m. on weekdays. Avoid driving during these times if you can. 
• Traffic increases during the summer season, which can be an issue for getting around town efficiently. 
• Parking is limited and spaces are tight. Be prepared to pay for parking in most neighborhoods. 

Chicago drivers need to be aware of specific rules set by the city, including the following:

• In urban areas, you must come to a complete stop when moving out of an alley, building, private road or driveway, and before entering the sidewalk area. If there is no sidewalk, stop at a point nearest the street or roadway with a view of approaching traffic. 
• Any time you park on a hill, you should put the gear select in park and set the parking/emergency brake if necessary.
• You may not drive on a sidewalk except when it is part of a driveway.
• Slower traffic must drive in the right lane. The left lane is for passing and turning.

How much car insurance do I need in Chicago?

Chicago drivers must carry a minimum amount of car insurance, which is determined by the state of Illinois. Below is a breakdown of the minimum car insurance requirements:

• $25,000 in bodily injury liability coverage per person. 
• $50,000 for bodily injury liability coverage per incident for all injured parties.
• $20,000 in property damage coverage per accident. 

Opting for a minimum coverage insurance policy may be the cheapest option, but it also provides the least protection for you. Add more extensive coverage, like comprehensive or collision, to ensure you have help repairing or replacing your vehicle after an incident. 

Average cost of car insurance in Chicago

Chicago drivers pay an average of $565 per year for a car insurance policy that meets the state’s minimum requirements. For drivers seeking more protection, the average cost of a full coverage policy is $1,930 per year, which is just a tad higher than the national average cost of $1,895 for a full coverage policy. 

In Illinois, the average cost of a full coverage policy is $1,532 per year. Chicago drivers can expect to pay more than elsewhere in the state. Below is a breakdown of the average annual cost for drivers in the Windy City.

How much does car insurance in Chicago cost with violations?

Car insurance costs often increase after you receive a traffic violation. You should expect to pay more for car insurance if you receive a violation in the form of a speeding ticket, at-fault accident or DUI conviction. 

For example, Chicago drivers will pay an average 74% rate increase after a DUI. If you are caught speeding, that ticket could push your car insurance rates up by an average of 36%. At-fault accidents also lead to higher costs, with an average rate increase of 55%.

Cheapest car insurance in Chicago by age

Car insurance companies consider age when determining premiums. In general, younger drivers face higher car insurance premiums due to a lack of experience. Insurance companies reward you with lower rates as you gain experience on the road. The table below highlights how this trend holds true in Chicago. 

Compare auto insurance rates in Chicago by ZIP code 

Depending on where you live in Chicago, you might find very different rates. In general, ZIP codes tied to shorter commutes or lower crime rates have the most attractive rates. The cheapest ZIP codes are 60657 and 60661 with rates below $1,700 for the year. On the other end of the spectrum, drivers in the ZIP codes 60637, 60619 and 60612 will pay more than $2,200 for insurance annually.

Explore the cheapest and most expensive ZIP codes for car insurance in Chicago below. 

Cheapest ZIP codes for car insurance in Chicago

Most expensive ZIP codes for car insurance in Chicago

Our recommendations: Car insurance for drivers in Chicago

It’s illegal to drive in Chicago without a minimum level of car insurance. While you can’t avoid the cost of car insurance altogether, there’s no need to overpay. The best way to avoid overpaying is by shopping around. 

Take the time to gather quotes from multiple car insurance companies to lock in the most affordable rates for your unique situation. 

A full coverage insurance policy with liability limits of 100/300/100 is the best option for most drivers. Consider increasing your liability limits as you accumulate wealth and your net worth increases. Purchasing as much car insurance as you can afford will give you peace of mind as you navigate the roads of Chicago.

What our expert says

Q: Why do insurance rates vary from city to city?

Dr. James BrauJoel C. Peterson Professor of Finance Brigham Young University

“Large cities tend to present more risk to the insurance companies than rural areas. Large cities have more people, more cars and higher chances of getting in wrecks or having other damage done to vehicles. As such, insurance firms must charge higher premiums in cities. Cities that are relatively more dangerous, in turn, must charge higher premiums than cities that are not as risky. Insurance companies study damage losses per metropolitan area and assign premiums depending on the number of wrecks in an area.”

Resources & Methodology

Methodology

In 2024, Insure.com commissioned Quadrant Information Services to pull rates for a 40-year-old who has a 12-mile commute and drives a 2023 Honda Accord LX 10k miles annually. The hypothetical driver has full coverage, carrying policy limits of 100/300/100 with $500 deductibles for comprehensive and collision coverages. We analyzed 51,088,003 insurance quotes from 167 companies across 34,588 ZIP codes in every state and Washington, D.C.

Sarah Sharkey

Contributing Researcher

 

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Sarah Sharkey is a personal finance writer with a master’s degree in management from the Hough School of Business at the University of Florida. She enjoys helping readers find money solutions that work. She has written for numerous personal-finance publications including Money Under 30 and The College Investor.