What you need to know about car insurance in Illinois

Illinois drivers pay about 21% less than the national average for full coverage and liability car insurance. That breaks down to $1,532 per year for full coverage car insurance versus $1,897 nationwide. For liability-only insurance that meets the state’s minimum coverage requirements, Illinois residents pay $421 per year versus $503 for the U.S.

Of course, those rates are just averages. Your Inniois car insurance premium will be different.

“Car insurance premiums are determined by a variety of personal, vehicle, and external factors that insurers use to assess risk,” said Kristine Pokrandt, an agent with Goosehead Insurance in Highwood, Illinois.

“Each factor can either increase or decrease the premium rate, depending on how it influences the perceived likelihood of an accident or a claim being made. Understanding these factors can help drivers make informed decisions about their coverage and potentially lower their insurance costs,” she said.

In this guide, we’ll explain the most important things you should know about auto insurance in Illinois, including average costs by company, coverage requirements, and tips for saving money on your insurance coverage.

Key highlights

• The average cost of car insurance in Illinois is about 21% cheaper than the U.S. average.
• Illinois drivers are required to carry at least liability insurance with coverage limits of at least 25/50/20.
• Auto Club Group (AAA) has the cheapest average car insurance rate, $979 annually. That’s more than $500 less than the state average.
• Allstate has the most expensive average rate at $2,742, more than $1,000 above the state average.

Understanding car insurance requirements in Illinois

Drivers must carry liability insurance with coverage limits of 25/50/25 at minimum to register their vehicles and legally drive. Here are the minimum requirements in the state:

• $25,000 in bodily injury liability coverage per person
• $50,000 in bodily injury liability coverage per accident
• $20,000 in property damage liability coverage per accident

Those coverage amounts are unlikely to be sufficient if you’re involved in a serious at-fault accident. Experts recommend liability insurance coverage of 100/300/100.

“When it comes to liability insurance, this is what protects your livelihood. While the state may only require $25,000 in bodily injury coverage per person, it might only cost $15 to $20 more per month to carry coverage of $250,000. In the event of a catastrophic accident, if your policy limit does not cover the injuries someone sustains, you are on the hook for the difference,” Pokrandt says.

Bear in mind that liability insurance does not cover the cost of medical care for injuries you or your passengers may sustain in an at-fault accident. Other forms of auto insurance may cover those costs, like personal injury protection (PIP) or medical payments (MedPay) or by health insurance.

Average cost of car insurance in Illinois

Compared to the U.S. as a whole, Illinois has cheaper car insurance rates across the board, from state-minimum liability insurance to full coverage.

The average annual cost of state minimum car insurance in Illinois is $421, which is lower than the U.S. average of $503. If you choose higher coverage limits of 50/100/50, you’ll pay an average of $471 per year vs. the national average of $649 per year. For full coverage car insurance with limits of 100/300/100 and $500 deductibles, the Illinois average is $1,532, which is significantly lower than the U.S. average of $1,897.

The rates below were collected from auto insurance comparison site CarInsurance.com for single, 40-year-old male and female drivers of a 2023 Honda Accord LX with a good credit and no violations on their record for full coverage insurance policy with liability limits of 100/300/100 and $500 comprehensive and collision deductibles.

How to find cheap auto insurance in Illinois

One of the easiest ways to reduce your auto insurance premium is to take advantage of common discounts, such as bundling your policies, maintaining a clean driving record, driving a safe vehicle, and low-mileage discounts.

“Illinois drivers have several options to save on car insurance by taking advantage of discounts, adjusting coverage limits, and improving personal factors that affect premiums,” Pokrandt says

You can also reduce your car insurance premium by shopping around and comparing quotes from several insurers every six to 12 months or before you renew your current policy. Comparison shopping is the best way to find the cheapest auto insurance policy for your coverage needs and individual situation.

Car insurance rates by company in Illinois

Car insurance premiums in Illinois can vary significantly depending on the insurance company that underwrites your policy.

Our research shows that Auto Club Group (ACG), a AAA company, has the cheapest car insurance in Illinois, with an average rate of $979 per year or $82 per month for full coverage. Travelers is another cheap option, with full coverage rates 27% below the state average: $1,119 annually or $93 per month.

Allstate, which is one of the largest car insurance carriers in the country, is the most expensive company in Illinois, according to our rate data. Allstate’s average full coverage premium is $2,742 per year or $228 per month, nearly 80% higher than the state average.

Comparing car insurance quotes in Illinois

To give you a better idea of what you may pay for coverage in the Land of Lincoln, consider the following average auto insurance rates in Illinois:

Illinois car insurance cost by city

The city you live in also determines what you’ll pay for car insurance; rates can vary between ZIP codes.

Chicago is the most expensive Illinois city for car insurance, with an average annual full coverage rate of $1,930. The suburban cities of Joliet ($1,574) and Waukegan ($1,564) have the second- and third-highest rates.

The cheapest city for car insurance in Illinois is Champaign, with an average rate of $1,367 per year. Naperville ($1,429) and Aurora ($1,476) also have below-average rates.

Frequently asked questions

How can I save on car insurance in Illinois?

Illinois drivers can save money on car insurance in many ways. First, ask your agent or insurance representative about common discounts you may qualify for, such as bundling your policies, taking a defensive driving course, insuring multiple vehicles, having no prior insurance claims, and maintaining a clean driving record. You may also want to consider a safe-driver program, which monitors your on-road habits in exchange for potentially lower rates if your carrier offers it.

Remember to shop around every six to 12 months or before your policy renews to ensure you’re still getting the best rate possible.

Is Illinois a no-fault state?

No, Illinois isn’t a no-fault state. It is a tort state.

“Illinois follows an at-fault system for car insurance, meaning that the driver responsible for causing an accident is liable for any resulting damages,” Pokrandt says. “This differs from no-fault states, where each party’s insurance typically covers their own [injury-related] losses regardless of who caused the accident.”

Under this system, a driver who causes an accident is responsible for covering the other party's medical expenses and property damage. Injured drivers may be able to file a claim with their insurance company or the at-fault driver’s carrier to get additional compensation.

Methodology

Editors collected rate information from auto insurance comparison site CarInsurance.com for single, 40-year-old male and female drivers of a 2023 Honda Accord LX with good credit and no violations on their record for full coverage insurance policy with liability limits of 100/300/100 and a $500 comprehensive and collision deductible.

In addition, we also calculated rates for these same hypothetical drivers, but with one or more of the following on their record: speeding ticket, at-fault accident, DUI/DWI, poor credit history, or a lapse in coverage.

We analyzed more than 53 million quotes, more than 34,000 ZIP codes and 170 insurance companies nationwide.

Note: 100/300/100 means up to $100,000 for the medical bills of those you injure, up to $300,000 per accident for bodily injury liability for all persons injured in one accident, and $100,000 to repair other drivers’ cars and property that you damage.