You have probably watched the catchy advertisements from car insurance companies like Nationwide and Allstate that make claims of huge savings, so drivers just need to choose any one of them, right?
Unfortunately, it’s not that simple as there are a lot of unknowns like any tickets or violations, when you were born, if you are a man or woman, and how much you actually drive in a year, that all impact the price you pay. This article covers these topics and hopefully give you enough understanding to have a solid foundation to find cheaper car insurance.
For new drivers, one of the big criteria that aid in calculating the cost of insurance is where you keep your car in Chicago. Regions with more people or even just more weather-related claims tend to pay slightly more, whereas areas with less congestion benefit from lower coverage costs.
The information below sorts the most costly cities in Illinois for inexperienced drivers to buy car insurance in. Chicago comes in at #2 with an annual rate of $1,499 for the average insured, which is around $125 per month.
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Premium amounts are approximated as zip code location can increase or decrease premium rates greatly.
Comparing rates for low-priced car insurance is confusing at best, and deciding which company has the cheapest car insurance rates for inexperienced drivers will involve more quotes for comparison.
Every car insurance company has their own unique process for setting prices, so let’s begin by taking a look at the overall cheapest car insurance companies in Chicago, IL. It’s important that you understand Illinois car insurance rates are influenced by many factors which can significantly increase or decrease the price you pay. Simply getting older, getting married, or getting a driving violation may prompt premium changes resulting in some companies being higher-priced than the competition.
Cheap Insurance Rates for Newbies
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The Hartford generally has some of the cheapest car insurance rates in Chicago at around $746 each year. Rockford Mutual, Titan, Erie, and Cincinnati Insurance also rank well as some of the most economical Chicago, IL car insurance companies.
In the above rates, if you are a customer of Erie and switched to Rockford Mutual, you might realize an annual savings of in the vicinity of $49. Policyholders with Cincinnati Insurance could save as much as $77 a year, and Travelers insureds might lower prices by up to $114 a year.
It’s important to note that these rates are averages for all ages of drivers and types of vehicles and do not take into consideration an exact location for inexperienced drivers. So the company that is most affordable for your situation may not even be in the top 36 companies shown above. That emphasizes why you need to get quotes using your own specific driver information and vehicle.
Picking a good quality car insurance provider is difficult considering how many choices drivers have in Illinois. The ranking information shown next may help you pick which auto insurance companies you want to consider when insurance shopping for inexperienced drivers.
The ratings below are only comprised of the largest auto insurers in America, so companies without a large exposure will not be included in the list. To get rate quotes from the most competitive companies in Illinois, follow this link.
Top 10 Major Auto Insurers in Chicago Ranked by Customer Satisfaction
- USAA – 92%
- Erie Insurance – 88%
- American Family – 88%
- State Farm – 88%
- Nationwide – 88%
- 21st Century – 88%
- AAA Insurance – 87%
- Liberty Mutual – 87%
- Farmers Insurance – 87%
- The Hartford – 87%
Top 10 Major Auto Insurers in Chicago Ranked by A.M. Best Rating
- USAA – A++
- GEICO – A++
- Travelers – A++
- State Farm – A++
- Titan Insurance – A+
- Progressive – A+
- Erie Insurance – A+
- Mercury Insurance – A+
- The Hartford – A+
- Nationwide – A+
How to get discounts on Chicago auto insurance rates
Insurance providers that provide policies for inexperienced drivers may provide rate discounts that can lower rates by as much as 25% or more if you are eligible to receive them. A few popular companies and some of the discounts are detailed below.
- GEICO policyholders can earn discounts including defensive driver, multi-vehicle, anti-lock brakes, seat belt use, and anti-theft.
- Mercury Insurance offers discounts including age of vehicle, accident-free, low natural disaster claims, annual mileage, and professional/association.
- Farmers Insurance discounts include mature driver, switch companies, multi-car, homeowner, business and professional, teen driver, and youthful driver.
- Auto-Owners Insurance may have discounts that include anti-theft, student away at school, group or association, company car, and multi-policy.
- Liberty Mutual has savings for newly retired, good student, new move discount, preferred payment discount, new graduate, and exclusive group savings.
- SAFECO may offer discounts for multi-car, anti-theft, teen safe driver, teen safety rewards, bundle discounts, and safe driver.
- Progressive may include discounts for good student, homeowner, multi-vehicle, continuous coverage, multi-policy, online signing, and online quote discount.
- USAA offers premium reductions for driver training, good student, annual mileage, multi-vehicle, and military installation.
The example below compares insurance rates with and without discounts applied to the policy premium. The premium estimates are based on a male driver, a clean driving record, no at-fault accidents, Illinois state minimum liability limits, full physical damage coverage, and $100 deductibles. The first bar for each age group shows insurance cost with no discounts. The second shows the rates with vehicle safety, safe-driver, defensive driving course, multiple vehicle, accident-free, and claim-free discounts applied. When drivers qualify for the discounts, the average savings per year on car insurance for inexperienced drivers is 28% or $558.
Impact of speeding/accidents on car insurance rates
The best way to receive cheap car insurance prices in Chicago for new drivers is to drive safe and avoid getting tickets or having accidents. The information below shows how traffic citations and at-fault collisions influence premium costs for different age categories. The price estimates are based on a single female driver, comprehensive and collision coverage, $250 deductibles, and no discounts are applied to the premium.
In the previous example, the average cost of a car insurance policy in Chicago per year with a clean driving record and no accidents is $1,775. Add in two speeding tickets and the average cost surges to $2,383, an increase of $608 each year. Then add in two accidents along with the two speeding tickets and the 12-month cost of car insurance for inexperienced drivers goes up to an average of $4,609. That’s an increase of $2,834, or $236 per month, just for not driving carefully!
Why you are probably overpaying for car insurance
Chicago, IL car insurance rates are impacted by many things that can increase your annual premium. Turning one year older, having a teen driver, or getting a reckless driving citation may generate price changes resulting in some rates now being more affordable than others. Not only that, but companies modify pricing as often as every three months to help ensure profitability. Heavy losses may cause rate increases, while a profitable period can cause cheaper Chicago car insurance rates.
For example, the data below compares the cheapest car insurance in Chicago, IL for a 30-year-old female driver with a clean driving record, no accidents, and solid credit. If we look at prices based on her current situation, The Hartford quotes the most affordable car insurance rates in Chicago at $1,199 a year. This is $150 less than the average price paid by Illinois drivers of $1,349. Rockford Mutual, Titan, Cincinnati Insurance, and Erie are also on the list of the most affordable Chicago, IL auto insurance companies.
In the next rate comparison, we’ll give the driver from the first set of rates a chargeable accident, a lower credit rating, and a stop sign violation. Since each insurance company uses their own calculation for determining rates, comparing quotes could now result in a slightly different list of the cheapest Chicago car insurance companies as shown below.
Travelers now has the best auto insurance rate in Chicago, IL with USAA, SECURA, State Farm, and Auto-Owners now rounding out the top five. This example shows why Illinois drivers need to perform a complete rate comparison to get the most budget-friendly insurance quotes for inexperienced drivers.
Insurance prices are impacted by many different factors and change substantially, so the lowest-price company when you last compared rates may now be one of the higher cost companies.