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Chicago is Illinois’ largest city and the third-largest city in the U.S. — with around 2.7 million residents.There’s plenty to see and do — whether you’re catching a game at Wrigley Field or enjoying a boat tour on the Chicago River.
All of this activity can lead to some of the most congested roads in the country. And that traffic might be one factor pushing Chicago’s car insurance rates up. Chicago drivers pay an average of $152 per month for car insurance, according to Compare.com data.
We’ll highlight the Chicago car insurance companies offering the most affordable rates and the best coverage options for different types of drivers.
Key Takeaways:
- Chicago drivers pay averages of $93 per month for liability-only auto insurance and $211 per month for full coverage.
- Mile Auto has the lowest average rate in Chicago, at $88 per month.
- First Chicago has the cheapest rates for drivers with a speeding ticket, at $97 per month.
In This Article:
How Much Is Car Insurance in Chicago?
The average cost of car insurance in Chicago is $152 per month — that breaks down to $93 per month for liability insurance and $211 for full coverage. But average rates are just the surface — your unique driver profile determines what you’ll actually pay. Car insurance companies look at factors like your age, driving history, and credit history to determine your specific premium.
Keep reading to discover the cheapest car insurance companies in Chicago.
Find the Cheapest Car Insurance in Chicago
Chicago’s Cheapest Car Insurance Companies
Although Chicago’s average car insurance rate is $152 per month, you can lower your insurance costs by purchasing a policy from one of the cheaper insurers in the area.
The table below features the cheapest car insurance companies in Chicago, sorted by the average monthly premium.
| Company | Average Monthly Premium |
|---|---|
| Mile Auto | $88 |
| American Alliance | $91 |
| First Chicago | $118 |
| Clearcover | $128 |
| Mercury | $130 |
Mile Auto offers the lowest average rate in Chicago, at $88 per month, according to our data analysis.
Car insurance companies consider several factors when determining your rates, including your age, vehicle, driving record, and coverage limits. Let’s explore which car insurance companies are best suited for different demographics.
Get Chicago’s Best Rates in Minutes
The Best Car Insurance Companies in Chicago in 2024
There’s no single “best” car insurance company for each driver — the ideal insurer ultimately depends on your budget and specific needs. For example, a driver with a long commute will have different needs than someone who only drives occasionally.
The sections below highlight the best car insurance options for different types of Chicago drivers.
Mile Auto: Best for Chicagoans who work from home
Average premium: $88 per month
Compare.com Rating: 2.98 out of 5
Pros:
- Among the lowest average rates in the city
- No telematics-based GPS tracker necessary
- Excellent financial strength rating from AM Best
Cons:
- Trustpilot reviews complain of buggy app
- Not suited for people who drive a lot
- Only available in 11 states
Mile Auto is a newer insurance brand founded in 2017. The company only operates in 11 states and offers liability coverage, comprehensive coverage, collision coverage, roadside assistance, and rental car reimbursement.
Mile Auto is a unique pay-per-mile insurance company — the company determines your rates based on how much you drive each month. So drivers who don’t drive daily can save more with Mile Auto.
On average, Chicago drivers with Mile Auto policies pay $88 per month — but you should expect higher rates if you drive frequently.
Mercury: Best for Chicago drivers wanting basic coverage
Average premium: $66 per month
Compare.com Rating: 4.28 out of 5
Pros:
- Above-average J.D. Power customer satisfaction rankings
- AM Best financial strength rating of A (Excellent)
- Offers MercuryGO telematics program
Cons:
- Only available in 11 states
- Higher-than average number of National Association of Insurance Commissioners (NAIC) complaints
- 2 out of 5 customer rating on Trustpilot
Founded in 1962, Mercury offers liability coverage, comprehensive coverage, collision coverage, medical payments insurance, personal injury protection, uninsured/underinsured motorists coverage, rideshare coverage, and rental car insurance to drivers across 11 states.
Chicago drivers who choose liability-only insurance from Mercury pay just $66 per month, on average.
Mercury has earned high marks from insurance evaluators, including Best Digital Experience honors from J.D. Power in 2021, above-average J.D. Power customer satisfaction scores (866/1000), and an A (Excellent) financial strength rating from AM Best.
Hugo: Best for Chicago teens
Average premium: $637 per month
Compare.com Rating: 3.22 out of 5
Pros:
- Flexible payment plans based on driving habits
- Nearly 90% five-star ratings on Trustpilot
- Account setup takes only five minutes
Cons:
- No AM Best rating yet
- No mobile app available
- Rideshare insurance not available
Founded in Illinois in 2020, Hugo is a cutting-edge disruptor offering a unique pay-as-you-drive liability insurance model. The company lets drivers pause their coverage as they wish — which works well for teens heading off to college.
Hugo has three payment plans aimed at different types of drivers. Its Flex plan lets you pay only on days you drive, its Unlimited Basic plan is for drivers who drive most days, and its Unlimited Full plan is a full-coverage option for drivers seeking a robust policy.
Chicago teens who choose Hugo pay an average rate of $637 per month. While that figure may seem high, it still makes Hugo the cheapest company for Chicago teens, according to Compare.com data.
Cheapest Company for Liability Insurance: Mile Auto
Your coverage limits affect your car insurance rates — and higher coverage limits typically come with higher rates. State-minimum liability coverage is the cheapest policy available, though it’ll only cover the other driver’s repair bills and medical expenses after a car accident.
Here are the five cheapest car insurance companies in Chicago for state-minimum insurance.
| Company | Average Monthly Premium |
|---|---|
| Mile Auto | $61 |
| Mercury | $66 |
| Clearcover | $67 |
| Freedom National | $78 |
| First Chicago | $79 |
Mile Auto is the cheapest company in Chicago for liability-only insurance, at just $61 per month, according to Compare.com data.
In the next section, we’ll examine which Chicago car insurance companies offer affordable full-coverage policies.
Cheapest Company for Full-Coverage Insurance: Mile Auto
Full-coverage car insurance includes both comprehensive coverage and collision coverage in addition to liability insurance. Comprehensive and collision coverage are additional coverages that protect your car after a car accident — but they come with a higher price tag.
Here are five of the cheapest insurers for full coverage in Chicago.
| Company | Average Monthly Premium |
|---|---|
| Mile Auto | $106 |
| Clearcover | $151 |
| Mercury | $169 |
| First Chicago | $192 |
| Freedom National | $208 |
Mile Auto offers the cheapest full-coverage car insurance in Chicago, averaging $106 per month, according to our analysis.
Compare Chicago Auto Insurance Rates by Age
Your age plays a major role in determining your car insurance rates. Generally, young drivers pay the highest average rates, with costs stabilizing as you enter middle age.
The table below shows the cheapest companies and their average rates for each age group.
| Age Group | Cheapest Company | Average Monthly Premium |
|---|---|---|
| Teens | Hugo | $637 |
| 20s | Clearcover | $213 |
| 30s | Clearcover | $162 |
| 40s | First Chicago | $169 |
| 50s | Clearcover | $159 |
| 60+ | Clearcover | $128 |
Clearcover is an affordable option for most age groups — particularly senior drivers, who pay just $128 per month, on average, with Clearcover. Hugo is the cheapest option for teen drivers — though the average rate is still nearly four times the Chicago average.
Let’s take a closer look at the car insurance options for two groups with very different car insurance situations: teen drivers and senior drivers.
Cheapest car insurance for Chicago teens: Hugo
Teens pay the highest average rates due to their higher risk of serious crashes. They’re about four times more likely to get into an accident than drivers age 20 and older, according to the Insurance Institute for Highway Safety (IIHS).
If you’re a young driver who drives occasionally or leaves your car at home while you’re away at college, Hugo might be worth considering. It offers the most affordable rates for teens in Chicago, with an average monthly rate of $637, according to Compare.com data.
Cheapest car insurance for Chicago seniors: Clearcover
Drivers approaching retirement age have some of the cheapest rates around. Less commuting and fewer road trips mean older drivers have lower annual mileage than other age groups. Naturally, less driving means less accident risk — and lower rates as a result.
Chicago seniors age 60 and older can find the cheapest auto coverage with Clearcover, at an average monthly premium of just $128 per month, according to our data.
Compare Chicago Auto Insurance Rates by Driving Record
Car insurance companies look at your driving history when determining your quotes. Drivers with at-fault accidents and traffic violations on their record pay more, on average.
The table below shows the cheapest car insurance companies for drivers based on their driving record.
| Driving Record | Citywide Average Monthly Premium | Cheapest Insurer | Cheapest Insurer’s Average Monthly Premium |
|---|---|---|---|
| Clean record | $152 | Auto-Owners | $64 |
| At-fault accident | $226 | State Farm | $86 |
| Speeding ticket | $230 | Auto-Owners | $97 |
| DUI | $262 | Auto-Owners | $98 |
Cheapest car insurance in Chicago after a ticket: Auto-Owners
Receiving a speeding ticket usually increases your car insurance rates — just one ticket increases national average premiums by 27%, according to our data. How severely rates go up varies from company to company.
We found that Auto-Owners offers the lowest average rates for Chicago drivers with a speeding ticket, with an average monthly premium of $97.
Cheapest car insurance in Chicago after an accident: State Farm
After an accident, your rates will likely go up — national average rates increase by 34% after one at-fault accident, according to Compare.com data. The amount your rates increase depends on the severity of the accident and the company you purchase insurance from.
State Farm is the most affordable choice for Chicagoans with a less-than-perfect driving record. In Chicago, drivers who choose State Farm pay an average of $86 per month.
Cheapest car insurance in Chicago after a DUI: State Farm
A DUI is among the most severe traffic violations you can receive and can have the greatest effect on your car insurance premiums. We found that a single DUI conviction raises auto insurance premiums by 50% nationally.
Auto-Owners is the cheapest company in Chicago for drivers with DUIs, with an average rate of $98 per month.
Illinois Auto Insurance Requirements
Illinois requires drivers to carry proof of insurance. Minimum requirements in Illinois are $25,000 in bodily injury liability insurance per person, $50,000 in bodily injury liability insurance per accident, and $20,000 in property damage liability insurance.
Illinoisans caught driving an uninsured vehicle or with a suspended registration for no insurance will be fined $500 or $1000, respectively.
Chicago Auto Insurance FAQs
Here are answers to some commonly asked questions about Chicago car insurance.
How much is car insurance per month in Chicago, Illinois?
Chicago drivers pay an average of $152 per month for car insurance, according to our analysis. But your rate can vary based on your age, marital status, driving record, credit history, vehicle choice, and more.
Which company is the cheapest auto insurance company in Chicago?
Mile Auto offers the lowest rates on auto insurance in Chicago, with an average rate of $88 per month, according to Compare.com data.
Why is car insurance so expensive in Chicago?
Several factors could explain why Chicagoans pay above-average car insurance rates. For instance, the property crime rate has risen 48% in Chicago since 2019, which can increase rates. Additionally, Chicago’s property values are above the national average.
What is the minimum car insurance required in Chicago?
Illinois’ state minimums for car insurance are $25,000 in bodily liability insurance per person, $50,000 in bodily liability insurance per accident, and $20,000 in property damage liability insurance.
What happens if you get caught driving without insurance in Chicago?
Drivers in Illinois who operate an uninsured vehicle will face a fine of $500 and will have their registration suspended until they pay a $100 reinstatement fee and show proof of insurance. Another offense will lead to a fine of $1000.
Methodology
Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.
All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.
Sources
- J.D. Power, “Auto Insurance Shopping and Switch Rates Reach New Highs as Premiums Surge, J.D. Power Finds,” Accessed July 12, 2024.
- National Highway Traffic Safety Administration, “Older Drivers,” Accessed July 12, 2024.
- Insurance Information Institute, “Do auto insurance premiums go up after a claim?,” Accessed July 12, 2024.
- Brookings Institute, “The geography of crime in four U.S. cities: Perceptions and reality,” Accessed July 12, 2024.
- Chicago Tribune, “How Chicago area home values compare by ZIP code,” Accessed July 12, 2024.
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