Best Cheap Car Insurance in Chicago

• Chicago is the most expensive city in Illinois for car insurance. Full coverage policies cost an average of $2,186 per year in the city, while minimum coverage costs an average of $832 annually.
• State Farm, Travelers, and Auto-Owners have the most affordable average rates in Chicago, while COUNTRY Financial and USAA, along with State Farm, are the best for customer service. 
• The rates provided here are citywide averages, and the cheapest quote you receive will depend on individual factors like your driving record, age, and vehicle.

*USAA technically doesn’t qualify to rank on J.D. Power studies due to its eligibility restrictions.

State Farm offers the cheapest full coverage auto insurance rates in Chicago at $1,588 per year on average — that’s 27 percent less than the citywide average. Travelers, Auto-Owners, and USAA also have below-average rates.

For minimum coverage, Auto-Owners has the best rates in Chicago, with an average annual premium of $528 per year — that’s 37 percent cheaper than the city average. State Farm and COUNTRY Financial have the next cheapest rates for minimum coverage.

In 2024, there were 112,032 car accidents in Chicago, which caused 123 deaths.⁵ This was the year with the third-most accidents on record. The month with the most accidents was May, with 10,738 accidents, while February had the least: 7,800.

Fatalities from traffic accidents have steadily declined since 2021, with deaths in 2024 decreasing by 17 percent compared to the year prior. However, accident-related injuries increased by 10 percent year over year.

Western Avenue and Pulaski Road are some of the most dangerous roadways in the city based on the number of crashes that take place there, so be extra careful when driving in those areas.

According to state law, Illinois drivers must carry auto insurance with at least the following limits:

• Bodily Injury Liability: $25,000 per person/$50,000 per accident
• Property Damage Liability: $20,000 per accident
• Uninsured/Underinsured Motorist: $25,000 per person/$50,000 per accident⁶

If you can afford to, we recommend getting higher liability limits as well as full coverage, which will cover damage to your own vehicle.

At AutoInsurance.com, we evaluate auto insurance providers based on four key factors:

• Price (40%): We analyzed average premiums for full and minimum coverage in Chicago for good drivers with good credit. Full coverage averages use the following limits:
  • Bodily injury liability: $100,000 per person/$300,000 per accident
  • Property damage liability: $50,000 per accident
  • Uninsured and underinsured motorist bodily injury: $50,000 per person/$100,000 per accident
  • Comprehensive and collision: $500 deductible
• Claims Handling (25%): A good claims handling process from an auto insurer is prompt, transparent, and efficient, with clear communication throughout, fair evaluation of damages, and timely payment or resolution. We assess claims practices through sources like the CRASH Network Insurer Report Card and J.D. Power’s Claims Satisfaction Report, and financial strength from sources like AM Best and S&P Ratings. Real-life customer experiences are included when available.
• Customer Experience (25%): We evaluate the ease of the customer journey, from getting a quote and purchasing a policy to making changes or accessing documents. We consider the availability and quality of both online and agent interactions, as well as the functionality of the company’s website and mobile app. Our sources include J.D. Power studies, the NAIC complaint index, BBB ratings, and app store reviews.
• Coverage Options (10%): We review each company’s coverage offerings and value providers with options beyond the state required minimums, like accident forgiveness, gap coverage, rideshare coverage, and more.

Read more about our ratings and methodology.