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Car Insurance in Chicago: Rates, Requirements, and Money-Saving Tips

Learn about Chicago car insurance requirements, average costs, and how to find the best rates. Get the best rates and drive with confidence.

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Car insurance in Chicago is required to comply with Illinois state law. And if you have already driven in the Windy City, you know that insurance coverage is especially important, thanks to winter driving conditions, parking restrictions, and busy bottleneck traffic that never seems to slow down. This helpful guide to Chicago car insurance will explain your auto insurance coverage options, minimum coverage requirements, key factors influencing insurance rates, and more.

Average Car Insurance Cost in Chicago

Comprehensive coverage insurance in Chicago will set you back about $1,903. However, this figure can vary based on factors such as your driving history and insurance provider, among others. The average car insurance cost in Chicago is higher than that for other Illinois cities since car insurance companies in Chicago have a lot of big-city factors to take into account when setting their car insurance rates.

Factors Influencing Car Insurance Quotes in Chicago

Several notable factors will play into your car insurance rates in Chicago. These typically include:

  • Population density: City drivers are more expensive to insure than rural drivers. More cars on the road at any given time means more potential for incidents and accidents. Chicago consistently ranks poorly in national surveys when it comes to traffic congestion.
  • Accident statistics: Areas with more car accidents, such as Chicago, also see higher insurance rates.
  • Vehicle theft rate: More than 29,000 car thefts were reported in Chicago in 2023 alone, another serious factor that can drive up insurance rates.
  • The cost of repairs: It can be more expensive to repair cars in larger cities, which can also increase the price of auto insurance rates.

In addition, personal factors such as your driving record, credit score, and even your marital status can also impact car insurance quotes in Chicago.

Mandatory Car Insurance Requirements in Chicago

Not surprisingly, Chicago also has significant mandatory car insurance requirements for drivers. Collision coverage is not mandatory in Illinois, but many drivers choose to add that as well and some leasing companies will require it.

Bodily Injury Liability

If you drive in Chicago, you must have bodily injury liability insurance of $25,000 per person and $50,000 per accident at a minimum.

Uninsured Motorist Coverage

You must also carry insurance in case you are in an accident with an uninsured motorist in Chicago. Drivers must have uninsured motorist bodily injury insurance of $25,000 per person and $50,000 per accident as well as uninsured motorist property damage insurance of at least $15,000 with a $250 deductible.

Property Damage Liability Coverage

Finally, you must carry at least $20,000 of property damage liability coverage to drive in Chicago. You can go above and beyond these limits, but you cannot go below them.

How to Lower Car Insurance Premiums

Even though car insurance can be more expensive in Chicago, you do have a number of options for reducing your local car insurance premiums:

  • Review your current auto insurance policies: If you have had the same auto insurance company and policy for several years, it might be time to get a new quote and review your options. Things in your life may have changed, which can influence a drop in premiums. Getting married, for instance, can lower the price you pay for car insurance each month.
  • Work on your credit score: Credit scores are also a key factor used by insurance companies to determine car insurance rates. If you can improve yours by paying down debt and paying all of your bills on time, that will likely lead to more affordable car insurance.
  • Bundle your policies: Many companies offer discounts for bundled car and home insurance, for example, or auto insurance and rental insurance. The more policies you have with a single insurance agency, the less you are likely to pay for car insurance.
  • Focus on your driving record: Car insurance companies reward a good driving history. You might want to take a defensive driving course, review local laws and traffic signs, and give yourself more time to get wherever you are going. Safe driving is a good practice for reducing insurance rates and accidents alike!

You can also consider increasing your current deductible or reducing your overall coverage amounts if they are above the minimum required.

Get a Custom Comparison & Drive Insured

Insurance in Illinois is required for all drivers. If you are looking for more affordable car insurance coverage in Chicago, it is a great idea to get a custom comparison so that you can examine insurance offers side by side. A custom quote from EverQuote is always free. Auto insurance rates change all the time, so it is never too soon to get a new quote and review your options. Check out EverQuote today to find the most affordable car insurance for all of your Chicago driving needs.

FAQs

How much is car insurance per month in Chicago?
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The cost of car insurance in Chicago will vary based on your driving record, credit score, where you live in the city, and other factors. It averages more than $1,900 per year.
Is it normal to pay $200 for car insurance?
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Car insurance rates in Chicago vary based on many factors, but paying $200 per month for car insurance is definitely possible.
Why is Illinois car insurance so high?
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Car insurance in Illinois is on the higher end in large part due to Chicago. Cities typically have more accidents and thefts as well as fewer garages, which all lead to increased auto insurance premiums. In addition, car repairs are more expensive in Illinois, which can also contribute to higher auto insurance rates.
Is $100 a month too much for car insurance?
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"Too much" will depend on your budget and driving needs, but as a general rule, $100 per month for auto insurance is considered relatively affordable, especially for the Chicagoland area.

Premiums are sourced from over 30,000 zip codes across 200 insurance companies. We estimate premiums based on public filings for policies seeking 50/100 in liability with $500 deductibles for collision and comprehensive coverage. Estimated rates are based on a 35-year-old single female with a good credit score and no history of accidents or violations driving a 2023 Toyota RAV4 LE. We partner with Quadrant Information Services to source our data and assume no unique benefits or discounts are applied for these rates (unless otherwise stated). Your own rates may be different.