Illinois sits close to the national average for car insurance costs, but the range within the state is wide. Chicago and its dense urban core push rates significantly above the state average, while downstate Illinois and rural areas offer some of the more affordable rates in the Midwest. Understanding where you fall in that range and what you can do about it is the core of navigating Illinois car insurance well.
Illinois car insurance minimum requirements
Illinois requires:
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $20,000 property damage liability
- $25,000/$50,000 uninsured motorist bodily injury coverage
Illinois is notable for requiring uninsured motorist coverage as part of the standard minimum package, unlike many states where UM is optional. This reflects Illinois’s relatively high uninsured driver rate, particularly in the Chicago metro area.
Average car insurance rates in Illinois by city
| City | Average annual premium (full coverage) | vs. Illinois average |
| Chicago | $3,140 | +57% |
| Cicero | $2,980 | +49% |
| Joliet | $2,220 | +11% |
| Aurora | $2,180 | +9% |
| Rockford | $1,940 | -3% |
| Springfield | $1,830 | -8% |
| Peoria | $1,790 | -10% |
| Illinois average | $1,990 | — |
Chicago is the dominant cost driver in Illinois car insurance, with rates more than 50% above the state average. Downstate cities like Springfield, Peoria, and Bloomington see rates that compare favorably to most Midwest markets.
For Illinois drivers specifically interested in how rates compare to real-world driver experiences, including which insurers perform well at claim time in the Chicago market, the discussions in the insurance community include specific feedback from Illinois policyholders on carriers, claim outcomes, and renewal behavior.
Why Chicago car insurance is so expensive
- Vehicle theft: Chicago consistently has one of the highest vehicle theft rates in the country, particularly for certain Hyundai and Kia models following the viral theft trend. Comprehensive premiums reflect this.
- Traffic density and accident rates: Chicago’s expressway system carries enormous volume, and accidents on the Dan Ryan or Eisenhower translate directly into claims costs.
- Uninsured drivers: Illinois’s urban uninsured driver rate is significantly above the state average, which pushes UM claims costs higher.
- Weather damage: Chicago’s winters produce significant vehicle damage claims from ice, snow, and road salt corrosion, while spring hail events affect comprehensive costs.
Illinois-specific coverage considerations
Underinsured motorist coverage
Illinois requires uninsured motorist coverage but not underinsured motorist coverage. UIM coverage kicks in when the at-fault driver has some insurance but not enough to cover your damages. Given how many Illinois drivers carry only the state minimum, UIM coverage is worth adding to any policy.
Comprehensive for Chicago drivers
Given Chicago’s vehicle theft rates, comprehensive coverage is particularly valuable for Chicago drivers compared to downstate. The calculus changes for lower-value vehicles where the premium may exceed the expected payout, but for most vehicles over $8,000-$10,000 in value, carrying comprehensive makes financial sense in Chicago.
How to save on car insurance in Illinois
- Compare regional carriers alongside national brands. Erie Insurance, Country Financial, and State Auto are strong Illinois performers that often undercut national brands on price for similar coverage.
- Ask about low-mileage discounts. Illinois residents who work from home or use public transit and drive fewer than 7,500 miles annually may qualify for significant low-mileage discounts or pay-per-mile programs.
- Bundle policies. Auto-home bundling discounts typically run 10-18% in Illinois.
- Improve your credit. Illinois allows credit-based insurance scoring and the rate differential for credit improvement is meaningful. Moving from poor to good credit can reduce premiums by 30-40% over time.
- Review coverage after paying off your vehicle. Once a vehicle is paid off and the lender’s full coverage requirement drops away, reviewing whether comprehensive and collision still make financial sense can produce savings on older vehicles.
Illinois SR-22 requirements
Illinois requires an SR-22 filing for drivers who have had their license suspended for certain violations including DUI, driving without insurance, or accumulating too many points. An SR-22 is a certificate filed by your insurer with the state confirming you carry minimum required coverage. Not all insurers offer SR-22 filings, and carrying one typically increases premiums significantly for the 3-year filing period.
For Illinois drivers comparing coverage options and insurer experiences, including SR-22 specialists and the best carriers for drivers rebuilding their record, real-driver input from the best car insurance company is a useful complement to standard rate comparison tools that do not always capture how insurers actually perform when it matters.
FAQs
Is Illinois a no-fault state for car insurance?
No. Illinois is an at-fault (tort) state, meaning the driver responsible for an accident is liable for resulting damages. The at-fault driver’s liability insurance pays for the other party’s medical and property damage costs up to policy limits.
Does Illinois require collision and comprehensive coverage?
No. Collision and comprehensive are optional in Illinois unless required by a vehicle lender or lessor. The state only mandates liability and uninsured motorist coverage.
Can my Illinois insurer use my credit score to set my rate?
Yes. Illinois allows the use of credit-based insurance scores as a rating factor. Efforts to ban or restrict this practice have been proposed in the Illinois legislature but have not yet been enacted.
