🏙️ Car Insurance Rates in Illinois for 2025

Car insurance rates in Illinois remain moderate compared to many large states, but drivers in major cities—especially Chicago—still pay significantly more than in rural and suburban areas. Illinois benefits from lower accident rates than states like Florida or New York, but rising repair costs and severe weather claims have pushed premiums upward in 2025.

This guide breaks down the average cost of car insurance in Illinois, the cheapest companies, and how to save money this year.

🚗 Average Car Insurance Rates in Illinois (2025)

Illinois premiums are influenced by:

• Chicago’s heavy traffic
• Weather-related claims
• Higher medical and repair costs
• Vehicle theft in urban areas

Below is the chart that includes Illinois’ 2024 average premium.

📌 Illinois Average Annual Premium:
$1,440 per year (Full Coverage)

This is cheaper than New York, Florida, California, and Texas — but slightly more expensive than Ohio.

💸 Cheapest Car Insurance Companies in Illinois

Illinois has many insurers competing for market share, which helps keep prices more reasonable.

Here are the companies that typically offer some of the lowest rates:

1. State Farm

Illinois’s most dominant insurer — usually the cheapest statewide.

2. GEICO

Competitive for good drivers and suburban commuters.

3. Progressive

Strong digital discount options and good pricing for high-mileage drivers.

4. Allstate

Headquartered in Illinois — strong bundling discounts.

5. USAA

Cheapest for military families.

Chicago-area drivers often pay 40–70% more than downstate drivers.

⚡ Why Car Insurance Costs Rise in Illinois

1. Chicago Traffic & Accident Frequency

The Chicagoland area significantly increases statewide claim costs.

2. Vehicle Theft Rates

Chicago has above-average theft, affecting comprehensive premiums.

3. Severe Weather

Thunderstorms, hail, snow, and flooding contribute to large annual claim totals.

4. Rising Repair Costs

Illinois body shop prices have risen sharply since 2022.

5. Injury & Liability Claims

Urban crashes tend to produce more expensive claims.

🛠️ How to Save on Car Insurance in Illinois (2025)

Illinois drivers can reduce premiums with these strategies:

• Bundle home + auto
• Increase deductibles
• Use telematics (e.g., Drive Safe & Save, Snapshot)
• Maintain a good credit score (Illinois allows credit scoring)
• Compare quotes every 6–12 months
• Ask about low-mileage and commuter discounts
• Avoid lapse in coverage
• Take a defensive driving course

Pro tip: Suburban ZIP codes like Naperville, Schaumburg, and Peoria have much lower rates than Chicago proper.

📍 Illinois Cities With the Highest Premiums

Car insurance pricing varies heavily by location.

Most expensive areas:

• Chicago
• Cicero
• Berwyn
• Joliet
• Waukegan

More affordable areas:

• Naperville
• Springfield
• Champaign
• Peoria
• Rockford

🔗 Related Articles

• Florida Car Insurance Rates
• Texas Car Insurance Rates
• California Car Insurance Rates
• New York Car Insurance Rates
• Georgia Car Insurance Rates
• Michigan Car Insurance Rates
• Auto Insurance Market Share
• Loss Ratio Comparison Chart

❓ FAQ – Car Insurance in Illinois (2025)

1. What is the average cost of car insurance in Illinois?

Around $1,440 per year for full coverage.

2. Who has the cheapest car insurance in Illinois?

State Farm, GEICO, and Progressive often lead statewide.

3. Does Illinois allow credit scoring for insurance?

Yes. Credit-based insurance scoring is permitted.

4. What is the minimum car insurance requirement in Illinois?

Minimum liability: 25/50/20.

5. Why are Chicago car insurance rates so high?

Accidents, theft, congestion, and higher repair costs.