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Review: Cheapest Chicago Car Insurance Providers

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a road going through a city: chicago © Motor1.com chicago

If you need auto insurance in Chicago, it’s time to do some research and find the company that offers the lowest rates.

Advertiser Disclosure

You don’t have to drive to get around Chicago. You could opt instead to take the “L,” catch a bus, or hire a ride from Uber. But even with all of the options available, you might prefer to drive. If you do, you are required to have a specific amount of car insurance. Because of the busy urban area, you will pay more than the national average to get Chicago car insurance. But we have ways to help.

If you want to drive in Chi-Town, you don’t want to pay more than you need to. That’s why we went back through our best auto insurance provider list to find the cheapest auto insurance in Chicago. Let’s take a look at how the competition stacks up.

  Use Motor1's free tool to get matched with the best auto insurance providers and rates.         COMPARE QUOTES      

In this article: 

  • Chicago Car Insurance Requirements
  • Alternative Chicago Auto Insurance
  • Best Auto Insurance In Chicago
  • State Farm Chicago Car Insurance
  • American Family Chicago Auto Insurance
  • Driving In Chicago
  • What Causes Higher Chicago Auto Insurance Rates? 

Chicago 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 

Here is the breakdown of the requirements in Illinois from 2016, according to the Insurance Information Institute: 

  • Liability: $467.99
  • Collision: $322.33
  • Comprehensive: $131.89
  • Average Expenditure: $836.67

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)
  • Collision
  • Comprehensive
  • Roadside Assistance
  • Rental Car Reimbursement

If you choose to drive without auto insurance in Chicago, you could face penalties, but that’s the least of your worries if you get into an accident.

Alternative Chicago Auto 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.

Best Auto Insurance in Chicago

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.

Provider Overall Star Rating AM Best Financial Strength Risk J.D. Power Claim Servicing Score (out of 5)

State Farm

4.5

A++

3

American Family

4.0

A

3

Progressive

4.0

A+

3

Country Financial

N/A

A+

N/A

Geico

4.5

A++

3

 

State Farm Chicago Car Insurance (Top Pick)

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. 

  Use Motor1's free tool to get matched with the best auto insurance providers and rates.         COMPARE QUOTES      

While the rate rises after an accident, it’s not nearly as much as with some other companies. 

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 2019 U.S. Auto Claims Satisfaction Study and the 2019 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.

Coverage Details

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.

 
 

The customer reviews are mixed overall, but that tends to be the case in the insurance industry. Here is what one happy customer had to say.

“They have always provided the utmost service for all our needs. We will always carry State Farm. They are always on our side.”

-Robin Dice via Trustpilot

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.
   

American Family Chicago Auto Insurance (Runner-Up)

American Family ranks 15th out of the nation’s largest auto insurance providers 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 2019 U.S. Auto Claims Satisfaction Study and the 2019 U.S. Auto Insurance Study from J.D. Power, in every region it is offered.

  Use Motor1's free tool to get matched with the best auto insurance providers and rates.         COMPARE QUOTES      

Just like State Farm, you will also find some additional benefits with this auto insurance in Chicago.

Coverage Details

Gap Insurance

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.

Ridesharing Insurance

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.

 

Unlike State Farm, it’s more challenging to find positive reviews. We aren’t sure if it is a customer service issue or people don’t understand the coverage and are misinformed. Still, we were able to get our hands on this one customer that had something positive to say.

“I have been with American Family Insurance from the beginning, starting with my first car to where I am now roughly 38 years later with my home and vehicles. They have been a very reliable company and I trust in their knowledge for the best coverage and affordability. I will never have a need to seek and search for a different company.”

-Kamilia S. via BBB

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.

Driving In Chicago

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 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. This inclement weather leads to wet brakes, decreased visibility, and slick roads.

What Causes Higher Chicago Auto 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:

  • 60621
  • 60623
  • 60624
  • 60636
  • 60644

Here are the cheapest zip codes in Chicago for car insurance:

  • 60018
  • 60601
  • 60611
  • 60614
  • 60657

When you shop for car insurance in Chicago, you want to make sure you get several quotes. What’s cheap for one driver, might not be the same for another. Try getting three quotes from our best auto insurance company reviews and compare the policies. Make sure you also take advantage of any available discounts to receive the lowest rate possible. 

  Use Motor1's free tool to get matched with the best auto insurance providers and rates.         COMPARE QUOTES      
 

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