Who Has Cheap Chicago Car Insurance Rates for First-time Drivers?

The vehicle needing coverage is one of the primary factors that determines whether or not you can buy affordable insurance for first-time drivers. Vehicles with high performance, poor passenger safety features, or a track record of large liability claims will cost substantially more to insure than safer models. The information below shows auto insurance costs for a number of the more affordable automobiles to insure in Illinois.

Cheapest Vehicles to Insure in Chicago, IL
Vehicle Insured Estimated Cost for Full Coverage
Honda CR-V EX 2WD $8,289
Ford Escape Limited 4WD $8,869
Honda Accord EX-L 4-Dr Sedan $8,876
Toyota Prius $8,945
Dodge Grand Caravan CV $9,328
Ford F-150 XLT Super Cab 2WD $9,333
Honda Odyssey EX W/Rear Entertainment $9,757
Ford Fusion S 4-Dr Sedan $9,833
Volkswagen Jetta S 4-Dr Sedan $9,843
Toyota RAV4 Limited 4WD $9,833
Chevrolet Equinox LS AWD $9,839
Toyota Camry LE $9,833
Chevrolet Impala LT $9,843
Compare Cheap Rates Go

Data rating is based on single female driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Illinois minimum liability limits. Discounts applied include safe-driver, and claim-free. Estimates do not factor in specific garaging location which can raise or lower price quotes significantly.

Based upon these rates, models like the Honda CR-V, Ford Escape, and Honda Accord should be some of the cheaper vehicles to insure for new drivers. Auto insurance rates will be higher anyway because of the fact that there is more claim risk for first-time drivers, but generally speaking those vehicles will tend to have the least expensive rates compared to other vehicles.

Trying to buy reasonably-priced car insurance is not most people’s favorite thing to do, and figuring out which company offers the best auto insurance rates for first-time drivers may require even more perseverance. Each insurance company uses a slightly different approach to set their prices, so first let’s look at the rankings for the auto insurance companies with the overall cheapest rates in Chicago.

It’s important that you understand Chicago, IL auto insurance rates are impacted by many things which can significantly increase or decrease the cost of having a policy. This price fluctuation is why it is so important to spend some time comparing rates to get the most economical insurance quotes for first-time drivers. Auto insurance prices can be altered by many different factors and can decrease or increase without notice, so the most economical company two years ago may now be quite expensive.

Find Cheaper Auto Insurance for Inexperienced Drivers

Click to Compare Rates Now

Cheapest insurance companies in Illinois
Rank Company Cost Per Year
1 The Hartford $776
2 Rockford Mutual $813
3 Erie $878
4 Titan $878
5 Cincinnati Insurance $924
6 Travelers $952
7 Utica National $955
8 State Farm $972
9 SECURA $975
10 USAA $988
11 Auto-Owners $1,053
12 Safeco $1,053
13 GEICO $1,085
14 Amica $1,120
15 Farmers $1,146
16 California Casualty $1,173
17 MetLife $1,220
18 State Auto $1,223
19 Esurance $1,233
20 Progressive $1,243
Find Your Rate Go

The Hartford offers some of the cheapest car insurance rates in Chicago at around $776 per year. Rockford Mutual, Erie, Titan, and Cincinnati Insurance also qualify as some of the lowest-priced Chicago, IL insurance companies.

As shown above, if you have coverage with Erie and switched to The Hartford, you could see yearly savings of roughly $102. Drivers with Titan might save as much as $102 a year, and Cincinnati Insurance policyholders might lower prices by up to $148 a year.

Remember that these policy rates are averages across all drivers and vehicles in Illinois and are not factoring in a specific vehicle garaging location for first-time drivers. So the insurer that is most affordable for your situation may not even be in the top 36 companies in the list above. That point stresses why you need to quote rates from many companies using your own personalized driver profile and vehicle information.

Get discounts on Chicago auto insurance rates

Discounts on auto insurance for first-time driversCar insurance companies that offer quotes for first-time drivers may provide discounts that could reduce prices by 35% or more if you qualify. A list of auto insurance companies and their offered discounts include:

The information below illustrates the comparison of car insurance costs with and without discounts applied. The premiums assume a male driver, no accidents, no driving violations, Illinois state minimum liability limits, full physical damage coverage, and $500 deductibles. The first bar for each age group shows premium with no discounts. The second bar shows the rates with continuous coverage, passive restraint, vehicle safety, paperless filing, good student, and anti-theft discounts applied. With discounts applied, theaverage amount saved on auto insurance for first-time drivers is 28% or $616.

Choosing the right company can be rather challenging considering how many companies there are in Illinois. The rank data below can help you analyze which coverage providers you want to consider when shopping your coverage around.

These rankings are only made up of major nationwide insurance companies, so companies without a large exposure are not included in the list. If you would like to check rates from these and other companies in Illinois, just click here.

Top 15 Auto Insurance Companies for First-time Drivers in Chicago, IL
Company Value Customer Service Claims Customer Satisfaction A.M Best Rating Overall Score
USAA 99 100 90 92% A++ 97.4
21st Century 89 86 100 88% A 92.7
GEICO 97 91 88 85% A++ 92.5
Nationwide 88 94 91 88% A+ 91.3
AAA Insurance 93 87 88 87% A 90.8
Liberty Mutual 91 91 92 87% A 90.7
Safeco Insurance 90 93 88 86% A 90.2
State Farm 91 94 80 88% A++ 90.2
Travelers 89 91 94 79% A++ 90.1
American Family 88 92 83 88% A 89.4
Titan Insurance 89 91 83 86% A+ 89.3
Allstate 90 90 84 85% A+ 89.1
Progressive 83 85 99 87% A+ 88.7
Erie Insurance 92 90 82 88% A+ 88.5
Mercury Insurance 87 95 87 84% A+ 88.3
Compare Rates Now Go

Data Source: Insure.com Best Car Insurance Companies

Does full coverage make sense?

Saving on auto insurance should be important to the majority of people, and an easy way to pay lower rates for insurance for first-time drivers is to only pay for liability coverage. The diagram below shows the difference between car insurance rates with and without physical damage coverage. The premium estimates are based on no accidents, no driving violations, $100 deductibles, drivers are not married, and no discounts are factored in.

As an average for all age groups, full coverage costs an extra $2,046 per year over and above liability only. At some point, every insured wonders if paying for full coverage is a waste of money. There is no specific rule for phasing out full coverage on your policy, but there is a guideline you can consider. If the annual cost of comprehensive and collision coverage is more than 10% of the replacement cost of your vehicle minus the policy deductible, the it may be a good time to stop paying for full coverage.

There are a few cases where only buying liability is not recommended. If you haven’t paid off your loan, you have to maintain full coverage to protect the lienholder’s interest in the vehicle. Also, if your emergency fund is not enough to purchase a different vehicle if your current one is in an accident, you should not consider dropping full coverage.

The agents listed below can most likely answer your questions and help you decide which coverage fits your budget, since some drivers wish to get some professional input when trying to find the best insurance rates for first-time drivers. It’s not always easy to find the cheapest auto insurance company, so insurance agents can bring peace of mind knowing your coverage gives you decent coverage if you have a claim. To find a Chicago insurance agent in your neighborhood, click the button below the list or click here to compare price quotes.

View map of Chicago, IL insurance agents