The Cheapest Auto Insurance in Chicago in 2023

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 $166 per month for car insurance, which is $37 more than the rest of Illinois.

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:

• Car insurance rates are 22% higher in Chicago than in the rest of Illinois.
• 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.

Chicago’s Cheapest Car Insurance Companies

Chicago’s average car insurance rate of $166 per month is higher than the national average, but drivers can reduce their car insurance costs by purchasing their policy from one of the cheaper insurers in the area.

The table below features the cheapest car insurance companies in Chicago, sorted by their average monthly premiums.

Mile Auto offers the lowest average rate, at $88 per month, but keep in mind that Mile Auto is a pay-per-mile insurer, so people who have long commutes or drive often will face extra fees.

“There are different ways consumers can save money on their auto insurance,” explains Loretta Worters, vice president of media relations for the Insurance Information Institute (Triple-I). “Popular strategies include shopping around for your car insurance, comparing rates, raising your deductible, bundling car insurance with home insurance, maintaining a high credit score, and taking advantage of discounts.”

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.

The Best Car Insurance Companies in Chicago in 2023

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

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.

The insurer is a unique pay-per-mile insurance company — your rates are determined by 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.

Pros:

• 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

Mercury: Best for Chicago drivers wanting basic coverage

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.

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

Hugo: Best for Chicago teens

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.

Pros:

• Flexible payment plans based on your 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

Cheapest Car Insurance Rates 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.

Mile Auto once again offers the best deal, at just $61 per month, while Mercury is slightly higher, at $66 per month, according to Compare.com data. Customers who choose more robust full-coverage policies will have a hard time finding rates this low.

In the next section, we’ll examine which Chicago car insurance companies offer affordable full-coverage policies.

Cheapest Car Insurance Rates 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 if it’s damaged in an accident — but they come with a higher price tag.

Here are five of the cheapest insurers for full coverage in Chicago.

Mile Auto comes out on top as the cheapest full-coverage insurer in Chicago. Clearcover and Mile Auto are the only companies with full-coverage rates lower than the Chicago average.

Meanwhile, Freedom National’s rates are nearly double those of Mile Auto. And, unlike Mile Auto, Freedom National doesn’t offer discounts for low-mileage drivers.

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.

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 can find competitive rates by qualifying for good student discounts, staying on their parents’ car insurance policy, or choosing a safer car.

Hugo offers the most affordable rates for teens in Chicago. Its pay-as-you-drive model is a good option for teens who might drive occasionally or choose not to bring their car to college.

No up-front fees, same-day claims payouts, and cash rewards are just a few perks that might appeal to teen drivers trying to stretch a dollar.

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 who choose Clearcover pay just $128 per month. Clearcover offers discounts for safe driving, installing safety features in your vehicle, and paying up front. Its policy terms are only six months, compared to 12 months at most other insurance companies.

Seniors looking to switch policies regularly will appreciate the shorter policy term.

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.

First Chicago is the affordable choice if you’re a driver with a mixed driving record. Drivers with at-fault accidents and speeding tickets who choose First Chicago will still pay well below the Illinois state average.

Here are our suggestions for affordable car insurance — whether you have a clean driving record or a history of tickets and at-fault accidents.

Cheapest car insurance for good drivers in Chicago: Mercury

Drivers with clean driving records get the best rates, on average. Car insurance companies see drivers without speeding tickets or at-fault accidents as less likely to file claims in the future, so they charge them lower monthly premiums.

But even good drivers can get saddled with higher rates if they don’t shop wisely.

Mercury offers the best rate for Chicago drivers with clean driving records. Its telematics program, MercuryGO, tracks your driving habits and rewards safe drivers with savings of up to 40%. Plus, Mercury’s good driver discount helps drivers who avoid accidents unlock lower rates.

Cheapest car insurance in Chicago after a ticket: First Chicago

Receiving a speeding ticket usually increases your car insurance rates — by an average of 37% after one ticket, according to Compare.com data. How severely rates go up varies from company to company.

First Chicago offers the lowest average rates for Chicago drivers who receive a speeding ticket. On top of already low rates, First Chicago offers a driving record discount for drivers who’ve avoided tickets and accidents, as well as a discount for customers who enroll in an approved defensive driving course.

Cheapest car insurance in Chicago after an accident: First Chicago

After an accident, your rates will likely increase. Drivers see their rates increase by an average of 44% 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.

Once again, First Chicago is the best choice for drivers with a less-than-perfect driving record. Drivers with an accident pay $86 per month when they choose First Chicago — which is also below Chicago’s average rate.

The Average Cost for Chicago Car Insurance

The average car insurance rate in Chicago is $166 per month. But your rate might be higher or lower based on a variety of factors, such as your age, gender, marital status, driving record, and the car you drive — rates even vary by ZIP code.

Drivers in an area with a higher crime rate often pay higher rates due to the increased likelihood of theft or vandalism.

“Chicago’s rates are increasing in line with nationwide insurance cost increases,” explains Worters. “Factors include rising insurer losses due to increasing accident frequency and severity, increased attorney involvement in claims, supply chain issues, and more costly auto repairs due to more technologically sophisticated vehicles.”

While Chicago’s rates rise along with the rest of the country, how do car insurance costs in the Windy City compare to other Illinois cities? We’ll cover this in the next section.

Is car insurance expensive in Chicago?

The table below shows how Chicago’s car insurance rates compare to average rates in other Illinois cities.

Chicago’s rates are higher than those of other large cities in Illinois like Rockford, Naperville, and Joliet — where monthly rates are $114, $119, and $122, respectively. This makes sense, given that Chicago’s average rate is $37 higher than the average in the rest of Illinois and just $15 higher than the national average.

Cities with expensive property values tend to have higher car insurance rates, on average. A single-family home in the Chicago area costs $21,000 more than the national average, so it makes sense that Chicago’s car insurance rates exceed the national average.

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 $166 per month for car insurance, though 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.

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 rates from more than 75 partner insurance providers in order to compile the quotes 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 of the quotes listed in this article have been gathered 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 drivers with insight into how auto insurance companies determine their premiums.

Sources

1. J.D. Power, “Auto Insurance Shopping and Switch Rates Reach New Highs as Premiums Surge, J.D. Power Finds,” Accessed October 5, 2023.
2. National Highway Traffic Safety Administration, “Older Drivers,” Accessed October 5, 2023.
3. Insurance Information Institute, “Do auto insurance premiums go up after a claim?,” Accessed October 5, 2023.
4. Brookings Institute, “The geography of crime in four U.S. cities: Perceptions and reality,” Accessed October 5, 2023.
5. Chicago Tribune, “How Chicago area home values compare by ZIP code,” Accessed October 5, 2023.