Because of the busy urban area, Chicago pays more than the national average for car insurance. So to help you find the best Chicago car insurance for your car and your budget, our review team researched and reviewed the best car insurance providers in the nation.
Whenever you shop for car insurance, we recommend getting quotes from multiple providers so you can compare coverage and rates. In addition to the insurance company you choose, factors such as your age, vehicle make and model, and driving history can affect your premium, so what’s best for your neighbor might not be best for you.
Use our tool below or call (844) 246-8209 to start comparing personalized car insurance quotes:
In this article:
- Best Cheap Chicago Car Insurance
- Alternative Chicago Car Insurance
- What Are Chicago's Car Insurance Requirements?
- What Is The Average Cost Of Car Insurance In Illinois?
- What Is It Like Driving In Chicago, I.L.?
- What Causes Higher Chicago Car Insurance Rates?
Best Cheap Chicago Car Insurance
We agree that car insurance rates are one of the top factors when choosing a provider, but it can’t be all that you evaluate. It’s also vital to assess the company’s reputation, customer reviews, as well as available coverage options.
After all, it’s great to pay a low rate, but what will happen when you need a claim paid out? Are you going to get the money, or will you be left hanging?
Here are some reliable insurance companies that we have reviewed that also offer low-cost auto insurance quotes. If you want to save money, these options are the best place to start.
|Best Chicago Car Insurance||Our Overall Rating||Customer Service||Affordability||Coverage|
|4. Country Financial||4.2||4.3|| |
*You may notice that some car insurance companies are listed above those with higher star ratings. This is because our ratings take into account nationwide factors, while our ranking looks specifically at what insurance providers are best for car insurance in Chicago, I.L.
#1 State Farm: Top Pick For Chicago Car Insurance
State Farm is the nation’s largest auto insurance provider and covers more than 65 million policies. It is also in 36th place on the Fortune 500, further proving that the company isn’t going anywhere anytime soon. While State Farm offers some higher rates in other states, it ranks as one of the cheapest for auto insurance in Chicago. While the rate rises after an accident, it’s not nearly as much as with some other companies.
With State Farm car insurance, you can get all the standard coverages offered by most companies. Some are required by the financial responsibility laws that vary by state, while others can be a good idea to have anyway.
These are the six standard types of auto insurance:
|Bodily Injury and Property Damage Liability (BI/PD)||Pays the other party’s medical expenses and vehicle repairs when you cause an accident|
|Collision Insurance||Pays to repair your car if you get in an accident with another car, a solid object, or if your car rolls over|
|Comprehensive Car Insurance||Covers repairs not related to an accident – from hail, fire, flood, or theft, for example|
|Medical Payments (MedPay)||Covers your medical payments up to a certain amount, whether you were at fault or not, with no deductible|
|Personal Injury Protection (PIP)||Pays your medical bills and covers lost wages, death benefits, and more no matter who is at fault|
|Uninsured/Underinsured Motorist BI/PD||Pays for damage and medical costs for you and your passengers when in an accident with an uninsured or underinsured motorist|
Out of the coverages listed above, BI/PD is required by almost all states. Some states also require uninsured/underinsured motorist or medical coverage. All no-fault states require PIP since it covers the driver no matter who is at fault.
Let’s take a closer look at State Farm’s reputation. The company has an A+ Better Business Bureau (BBB) rating. On top of that, both the 2021 U.S. Auto Claims Satisfaction Study and the 2021 U.S. Auto Insurance Study from J.D. Power prove that this organization is a leader in the industry.
With that reputation, State Farm offers several additional perks to drivers in Chicago.
- Car rental reimbursement: With this option, your rental car is covered while your vehicle is in the shop for a related incident. You get to choose the limits on this policy.
- Roadside assistance: State Farm covers an hour of labor when you need help. This rate includes lockout services, towing, jump-starts, fluid delivery, and flat tire replacement.
- Travel expenses: The company pays up to $500 for your lodging, food, and other expenses as a result of an accident that occurs more than 50 miles from your home zip code.
- Additional insurance policies: State Farm provides a vast array of insurance options, including rideshare, life, boat, health, and home.
As far as technology is concerned, State Farm offers a lot of options with its Chicago car insurance.
- State Farm App: With this mobile app, you can pay your policy, submit claims, and more.
- Steer Clear: This educational app is geared toward young drivers. When drivers complete the courses and finish driving hours, the insurance company offers a certificate. That completion turns into a discount to save even more.
- Drive Safe & Save: With this usage-based app, you can receive up to 30 percent off your premium, just for driving safely. This app watches how you brake, accelerate, and monitors what time of the day you drive.
- State Farm Pocket Estimator: With this tool, you can quickly take photos of your damaged car to get a speedy estimate.
Largest auto insurer in the country, available in 48 states
Does not offer accident forgiveness
Customers report strong claims and service experience
Reported errors with autopay
Easy online quotes process
Not taking new customers in Massachusetts or Rhode Island
Many discounts for teens and students
Higher rates than some competitors
Superior financial strength rating and A+ rating from the BBB
To learn more about the car insurance provider, check out our review of State Farm auto insurance.
#2 American Family Insurance: Runner-Up
American Family ranks 15th out of the nation’s largest auto insurance providers, according to the National Association of Insurance Commissioners, and covers almost nine million policies, which is impressive considering it isn’t offered in every state. Aside from that, this insurance provider ranks 306th on the Fortune 500, so it isn’t just a no-name company you need to worry about.
If you are a safe driver or don’t need a lot of coverage, American Family should be able to provide you with one of the cheapest insurance rates.
We are pleased with American Family’s BBB rating. Plus, it comes with average or better reviews on the 2021 U.S. Auto Claims Satisfaction Study and the 2021 U.S. Auto Insurance Study from J.D. Power, in every region it is offered.
Just like State Farm, you will also find some additional benefits on top of the standard types of coverage.
If your vehicle is totaled and it is financed or leased, American Family will cover the ACV plus the amount left on the financing agreement.
Accidental Death And Dismemberment
If you cause a car accident that leads to death or severe injury, this policy will protect you.
If you drive for Uber or Lyft, you can add this policy to your existing insurance and fill the gap while you wait for customers.
The company might be smaller than State Farm, but it offers just as much technology.
- MyAmFam App: with this easy-to-use app, you can pay policy premiums, manage your account, and file claims.
- Teen Safe Driver Program: This app monitors for distracted driving or other risky behaviors. Once the teen completes 3,000 miles or a year with the program, there is also a discount offered to many drivers.
- KnowYourDrive: Receive a five percent discount just for signing up, then you can earn up to twenty percent off after proving you are a safe driver.
Poor customer service, depending on your location
Discounts for bundling insurance
Easy claims process
Unique car insurance discounts
Good for teens and seniors
To learn more about the car insurance provider, check out our review of American Family auto insurance.
#3 Progressive Insurance
We also recommend Progressive when it comes to Chicago car insurance. Progressive is on of the top car insurance providers in the U.S. and was awarded an A+ rating from AM Best, which means it has superior financial ability to meet insurance claims. In 2019 alone, Progressive wrote over $31 billion in insurance premiums, according to the National Association of Insurance Commissioners (NAIC). The company also received a J.D. Power Claims Servicing Score of 3.0 out of 5.0.
As one of the largest insurance providers, the company offers a number of different coverage options. On top of the standards types of car insurance, Progressive also offers:
- Roadside assistance
- Loan/lease payoff
- Rental car reimbursement
- Custom parts and equipment value
- Rideshare coverage
Progressive also offers many money-saving features, including:
- Deductible savings banks
- Bundling home and auto insurance
- The Snapshot program
- The Name Your Price® tool
|Good choice for high-risk drivers|| |
Does not offer military discount
|Easy quotes process|| |
Mixed customer service reviews
|Multiple add-on options|| |
Average customer satisfaction
|Superior financial strength rating|| |
Higher rates than some competitors
|Great choice for high-risk drivers|
To learn more about the car insurance provider, check out our review of Progressive car insurance.
#4 Country Financial Insurance
Another car insurance provider to consider is Country Financial. Founded in 1925 as a fire and lightning insurance provider, the provider grew to include multiple insurance products such as car, home and property, life, business, specialty products, farm and ranch, and crop insurance. Company headquarters are located in Bloomington, Illinois.
Overall, Country Financial has average rates and is in good financial standing. When we did a deep dive into Country Financial’s customer service and online reputation, we found that the J.D. Power 2021 U.S. Auto Claims Satisfaction Study recently ranked the company in third place in customer satisfaction with auto claims. Country Financial scored 850 on a 1000-point scale in the study that evaluated responses from over 11,000 auto insurance customers who had submitted a claim in the last six months before participating in the survey. We believe that the company’s strong rating is an indication that it is committed to treating its customers well and meeting their expectations.
When it comes to coverage, Country Financial auto insurance has several optional coverage add-ons for purchase that can give you added confidence on the road.
- The Keeper® new car coverage: If you have a new car less than four model years old that has suffered severe damage, The Keeper insurance coverage will pay for a brand new car of the same make and model. Older cars may also be eligible in Arizona.
- Emergency road service: This coverage provides up to $100 per incident for 24/7 road assistance services, such as towing, lock-out, delivery of fuel or repair parts, and labor.
- Vehicle rental and trip interruption: In covered loss cases, this coverage will give you up to $800 for rental cars and other travel-related expenses like transportation and lodging if you are more than 100 miles from home. Country Financial has a direct bill program with Enterprise Rent-A-Car, but you can also rent a vehicle from any other company as long as you are pre-approved. You can also use this amount for hiring a cab or using a ride-sharing service. Coverage may vary by state.
- Safety glass coverage: If you have comprehensive coverage, this add-on coverage will help you replace or repair the glass in your car – windows, windshields, or light covers – without paying your deductible.
- Personal effects coverage: You can protect valuables in your car for up to $800 if you have this coverage. There will be a $100 deductible.
- Umbrella insurance: Umbrella insurance coverage provides additional liability coverage of up to $1 million or more.
Overall, Country Financial is a viable option for Chicago car insurance It has been in the business for a long time and enjoys good financial stability with an A+ rating from AM Best.
Country Financial auto insurance costs seem average for the industry. Unique discount offers such as the engaged couple discount and occupation discount can qualify you for substantial savings on your premiums if you are eligible. At the same time, Country Financial does not offer accident forgiveness benefits or ridesharing coverage, which can be a disadvantage.
|Affordability||No accident forgiveness or ridesharing coverage|
|Several coverage options and discounts|
|Positive customer service reviews|
|A+ rating from the BBB|
To learn more about the car insurance provider, check out our review of Country Financial auto insurance.
#5 Geico Insurance
Another company that we recommend for Illinois drivers is Geico. This provider is the second-largest car insurance company in the U.S. and is known for its affordability and smooth claims experience, providing auto insurance to millions of people.
The company has an A++ rating from AM Best, which is the highest rating possible. That means that Geico can meet its financial burden from covering so many policies with ease. Also, Geico has an A+ rating from the BBB, and there are plenty of five-star Geico reviews online from happy customers.
You can also get the following extra options with a New Hampshire car insurance policy:
- Roadside assistance: Covers lockout services, jump-starts, spare tire installation, fuel delivery, and towing
- Rental coverage: Reimburses you up to the limits you choose for a rental car after a claim, or pays Enterprise directly if you use that company
- Mechanical breakdown insurance: Covers mechanical parts on your car from failure for a specific time/mileage similar to an extended auto warranty
Here are the discounts that you can get with Geico:
- Air Bag
- Anti-Lock Brakes
- Anti-Theft System
- Daytime Running Lights
- New Vehicle Discount
- Good Driver
- Seat Belt Use
- Defensive Driving
- Driver's Education Course
- Good Student
- Emergency Deployment
- Federal Employee (Eagle)
- Membership & Employee
We recommend Geico for Chicago car insurance because of its many extras and discounts, allowing you to personalize your auto insurance to your needs. It is also one of the most affordable car insurance companies, after USAA.
Many choices for coverage
Average quote experience
High level of customer satisfaction
Usage-based app not available in all states
Superior financial strength rating and A+ rating from the BBB
Available in 50 states
To learn more about the car insurance provider, check out our review of Geico auto insurance.
To get started comparing Chicago car insurance providers, simply enter your zip code in our tool below or call (844) 246-8209 to start comparing personalized car insurance quotes:
Alternative Chicago Car Insurance
Some people cannot receive standard car insurance in Chicago. If you are a high-risk driver with a DUI or crash on your record, you might be forced to go through the Illinois Automobile Insurance Plan instead. This is also the only option for some drivers with poor credit.
If you want cheap Chicago car insurance and you don’t have a spotty record, you don’t want to go this route. Policies offered through this insurance agency are extremely expensive and not suitable for the everyday driver. Instead, it’s best to consider one of the top providers for cheap car insurance in Chicago.
What Are Chicago's Car Insurance Requirements?
Chicago is the largest city in Illinois. Drivers in the Windy City must follow the same state-mandated insurance guidelines as every other person in Illinois. The State of Illinois dictates that all drivers have this minimum amount of coverage.
- Body liability injury per person/per accident: $25,000/$50,000
- Property damage liability per accident: $20,000
- Underinsured/uninsured motorists bodily injury per person/per accident: $25,000/$50,000
This level of coverage ensures that you remain legal in Chicago. However, it leaves you vulnerable in many ways. First, these policies are not going to cover the damage done to your vehicle or your medical bills as a result of an accident you cause. Furthermore, if you cause an accident that ends up costing more than these limits, you could be held liable for the difference.
Illinois is not an at-fault state, but still uses a system to determine where the responsibility lies. If you cause an accident that creates a total loss situation for a luxury car owner or the other person requires extensive rehabilitation, you won’t want to handle the financial burden of these situations.
That’s why it makes sense to add some of the following policy options to your plan as well.
- Medical/Funeral Benefits
- Loan/Lease Payoff (Gap Insurance)
- Roadside Assistance
- Rental Car Reimbursement
What Is The Average Cost Of Car Insurance In Illinois?
According to the National Association of Insurance Commissioners (NAIC), Illinois car insurance rates in 2017 averaged $897.07 per year. This is lower than the national average of $1,004.68, placing Illinois in the 25th spot out of all of the U.S. states for automobile insurance.
Here’s a breakdown of the coverage costs for car insurance in Illinois that year according to the Insurance Information Institute:
|Type of Coverage||Average Annual Expenditure in 2017|
*To calculate average expenditures, NAIC assumed that all insured vehicles would carry liability coverage but not necessarily collision or comprehensive. Total cost per year measures what consumers actually spent.
What Is It Like Driving In Chicago, I.L.?
Ridesharing is popular in Chicago, with more than 60,000 drivers. Still, more people are turning to driving or other forms of transportation as rideshare drivers are now getting banned for having parking tickets, according to the National Public Radio.
According to Forbes, Chicago also has one of the most congested systems of roads in the nation. The amount of accidents in Chicago is also higher than the national average, with 26 percent of the incidents during the first half of 2018 occurring as the result of a hit-and-run.
Some of the accidents are likely caused by poor weather. After all, in 2018, Chicago received nearly fifty inches of rainfall and experiences about 125 days per year of rain, sleet, snow, or hail, according to weather.com. This inclement weather leads to wet brakes, decreased visibility, and slick roads.
What Causes Higher Chicago Car Insurance Rates?
When it comes to getting a car insurance quote, several criteria factor into the total cost, no matter where you live. Most providers look at the following information.
- Age: Younger drivers are more likely to get into a car accident, thereby increasing the rate.
- Credit score: Your credit history is used to determine if you are reliable.
- Type of vehicle: If you want to lower your rate, you will want one of the cheap cars to insure, instead of that more expensive luxury model.
- Driving record: If you have a clean driving history, you will get a much lower rate than someone with speeding tickets or accidents on their record.
One of the most significant factors, however, is the location. Insurers look at your zip code to determine the risk involved. If you live in an area riddled with uninsured motorists, theft, and crime, you are going to pay more. Based on Chicago crime maps, it’s fair to assume that these zip codes are affected.
Here are the most expensive zip codes in Chicago for car insurance:
Here are the cheapest zip codes in Chicago for car insurance:
Use our tool below or call (844) 246-8209 to start comparing car insurance quotes in your area:
In an effort to provide accurate and unbiased information to consumers, our expert review team collects data from dozens of auto insurance providers to formulate rankings of the best insurers. Companies receive a score in each of the following categories, as well as an overall weighted score out of 5.0 stars.
- Industry Standing: Insurers with strong financial ratings and customer-first business practices receive the highest scores in this category.
- Availability: We consider availability by state as well as exclusions for specific groups of drivers.
- Coverage: This rating is based on types of insurance available, maximum coverage limits, and add-on policies.
- Cost and Discounts: Our research team reviews sample quotes for a variety of drivers in every state. Companies with lower prices and many car insurance discount opportunities receive the best scores.
- Customer Service: We comb through customer reviews and consumer feedback studies from experts like J.D. Power.
- Technology: Auto insurers with mobile apps, advanced online services and telematics are more likely to meet consumer needs.
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