The Average Car Insurance Cost in Illinois

Car insurance premiums are highly subjective, as the averages vary from state to state and driver to driver. In the Prairie State, the average full coverage premium costs about $1,500 annually, or about 10% less than the national average of about $1,670 annually.

Many factors are at play when insurers determine their policyholders’ premiums, both driving and non-driving factors. Let’s take a look at the key characteristics insurers in the Prairie State use to determine premiums and investigate the forces that contribute to the average cost of an auto insurance policy in Illinois.

On average, Illinois car insurance costs about $1,500 annually for a full coverage policy. While most insurers will offer rates in the ballpark of this annual premium, drivers may pay more or less for their policies depending on a few essential characteristics.

Car insurance premiums are subjective from driver to driver, so while your friend or parent may pay one rate, you may get quoted differently. Insurers use a variety of driving and non-driving factors when calculating your premiums, which may result in your quotes being comparatively higher or lower than average. For example, insurers may use your gender, age, ZIP code, credit score, or several other facts about you to determine your premiums. 

Insurers use these non-driving factors to help them assess the risk they take by binding a policy with you. The higher the risk an insurer takes by binding with you, the higher your premium will be.

For example, drivers in bigger cities like Chicago often pay higher rates than their counterparts in suburban or rural areas. This is because the population is so dense in the city that drivers are more likely to get into an accident and file a claim, thus raising premiums for all drivers with Chicago ZIP codes. When an insurer binds a policy with a driver living in a densely populated ZIP code, that policyholder may be considered a high-risk driver until they prove they’re a safe driver. 

High-risk drivers, like those with several traffic violations on their record or who’ve ever held an SR-22 form, may be taken aback by their quoted premiums. While the initial value of a premium for a high-risk driver may be double or triple the cost of premiums for their lower-risk counterparts, it’s important to remember that premiums ebb and flow. It may take a year or two, but anyone who’s found themselves in a high-risk category will see their premiums decrease the longer they go without any infractions on their driving record. 

While full coverage policies can be expensive, especially for a high-risk driver, it’s important to remember that often, the benefit outweighs the cost. Carrying a full coverage policy will cost more initially but will protect drivers more thoroughly in any accident scenario. The short-term savings of a minimum coverage policy are enticing, but the risk of financial ruin is much higher. 

The average cost of auto insurance in Illinois is about $125 per month for a full coverage policy or about $63 per month for a minimum coverage policy. A minimum coverage policy in the state will include $25,000 in bodily injury liability per person, $50,0000 in bodily injury liability per accident, and $20,000 in property damage liability per accident, otherwise expressed as 25/50/20 liability coverage. A policy with the minimum limit of liability coverage will automatically include $20,000 in uninsured or underinsured motorist bodily injury coverage (UMBI/UIMBI) per person and $40,000 in UMBI/UIMBI per accident, otherwise noted as 20/40 UMBI/UIMBI.

A policy with liability limits over 25/50/20 and other additional coverage types is considered a full coverage policy in the Prairie State. If you lease or finance your vehicle, you may be required by your lender or leaser to carry a full coverage policy with collision coverage and comprehensive coverage as part of your legally binding contract.

The average car insurance in Illinois is a full coverage policy with a few optional coverages from an insurer offering the cheapest base rates in the state and plenty of discounts. As long as you maintain the legal minimum limit of liability coverage, your policy is considered sufficient in the eyes of the law. Still, you may not be adequately protected in many accident scenarios.

Illinoisans tend to spring for a full coverage policy because it offers a broader range of protection that the policyholder can tailor to their individual needs. For example, while Illinois isn’t a no-fault state, and is instead a tort or at-fault state, a first-party medical benefit (FPMB) like personal injury protection (PIP) isn’t legally required. While insurers in the Prairie State don’t offer PIP, they do offer another FPMB called medical payments coverage (MedPay), which policyholders can use to cover the medical expenses they incur from an accident, regardless of who’s at fault.  

Those who opt for a full coverage policy in the state will often have a liability limit higher than 25/50/20, a UMBI/UIMBI limit higher than 20/40, uninsured or underinsured motorist property damage coverage (UMPD/UIMPD), MedPay, collision coverage, comprehensive coverage, or GAP coverage, among other coverages on their policies. 

While the average Illinois car insurance rates are about 10% lower than the national average, each driver will receive a quote with a unique rate, depending on some specific driving and non-driving factors about them. On top of a driver’s individual characteristics, insurers also use statistics about the state to determine the range of their rates.

Typically insurers look at two key statistics when determining the range of their rates: the population and the population of uninsured drivers. States with high levels of both will typically have average premiums higher than the national average and may even adopt no-fault laws to mitigate the strain these increased populations put on the legal and insurance systems from an onslaught of claims and court cases. 

When a state has a high population, the chances of drivers getting into accidents and filing claims is higher. Thus, the average premium in the state goes up. Similarly, when a state has a high population of uninsured drivers, the chances of a policyholder getting into an accident with an uninsured driver are higher, raising premiums. 

Getting into an accident in a tort state like Illinois means at least one driver must be deemed at fault for the accident, and the victim should file a claim with the at-fault party’s liability coverage to cover their expenses. However, when a policyholder is in an accident with an uninsured driver, their insurer will have to cover their expenses, assuming the policyholder has the necessary uninsured motorist coverage required in the state.

While Illinois is the sixth most populous state in the U.S., its population of uninsured drivers is lower than the 12% national average. This is why the average premium in the state can remain on par with or below the national average. 

If the premiums for your full coverage policy are above $1,500 annually, it’s likely because you live in a densely populated ZIP code, have several auto insurance claims on your record, have a poor driving record, have been caught illegally driving without insurance, or your insurer has raised their rates. 

Car insurance in Illinois costs about $1,500 annually for a full coverage policy or about $750 annually for a minimum coverage one. Remember, though, that your premium isn’t the only thing you pay when it comes to your policy. If you ever file a claim, you’ll have to pay your deductible before receiving the full amount of your coverage benefits. 

Policies with high premiums typically have low deductibles, and policies with low premiums often have high deductibles. When you bind your policy with your insurer, you should be able to select which combination you’d rather have, as it’s mostly a matter of personal preference. 

A liability insurance policy, or a minimum coverage policy, in Illinois, typically has a premium of about $750 annually or about $63 monthly. The premium is what you pay simply for having the policy. When budgeting the cost of car insurance, policyholders should also consider their deductible, should they ever need to file a claim. 

While a liability-only policy will legally protect you, it may not protect you in many other ways. The short-term savings of a liability-only policy can be enticing, but such a policy often ends up costing more in the long run if the worst-case accident scenario should happen and you’re injured in an accident you caused and lack the coverage to help you pay your medical bills.

Here at Clovered, we always recommend having a full coverage policy with as much coverage as you can afford. While the premiums for full coverage policies may be higher than those for minimum coverage, the deductibles are often lower, and so is the risk of financial ruin.

If you’re looking for a full coverage policy from an insurer that offers a base rate close to or less than Illinois’s state average, the best way to assess your options is to get and compare quotes online from the state’s top insurers. Getting and comparing quotes online lets you easily find the best policy for your needs.

Luckily, here at Clovered, quotes are our forte. Simply input some basic information about you and your vehicle to our free quoting tool right here, and in minutes you’ll have a list of policies and insurers that best suit your needs. If you want to chat with someone about your quote, contact one of our licensed agents at 833-255-4117 or [email protected].