8 Best Car Insurance Companies in Illinois of 2023
Car insurance in Illinois protects you from unforeseen automobile events.
No matter how much you use your car, you are more likely to get into a car accident that’s either your fault or the fault of another driver given that there are so many drivers on the road.
In fact, there are around eight million licensed drivers in Illinois, and any one of them may not practice safe driving.
As such, purchasing auto insurance is a good idea, as it will protect you and your car. Plus, it’s mandatory to have it in Illinois.
Also, if you cause an accident that injures the other driver, your auto policy will cover medical payments that the driver sustains.
If you didn’t have insurance, you’d have to pay for the medical bills out-of-pocket. That’s serious money, but one that you can avoid because Illinois has some of the lowest car insurance rates in all of the US.
The average cost of auto insurance in Illinois is 8% lower than the national average auto insurance premium.
So, there’s no excuse not to buy an auto policy.
There are so many auto insurance companies out there and it can be hard to choose the one that best suits your needs.
So, if you are looking for auto insurance that is affordable or has the right coverages, we’ve gathered a list of the best auto insurers and included a section about all you need to know about car insurance to help you make an informed decision.
Compare Car Insurance Rates in IL
Best Car Insurance Companies in Illinois
- Amica: Best for Special Features
- Liberty Mutual: Best for Mobile App
- Erie: Best for New Car Replacement
- GEICO: Best for the Cheapest Rates
- Farmers: Best with the Most Discounts
- Allstate: Best Car Insurance That Rewards You for Good Driving
- State Farm: Best for Teens & Young Drivers
- Progressive: Best for Quality Coverages
Amica: Best Car Insurance for Special Features
Amica offers many insurance products so that bundling is easy and has an above-average customer satisfaction rating based on verified reviews.
Amica has many special features compared to other auto insurers. These include:
- Free lock replacement if you lose your car keys.
- The glass deductible modification add-on means if your car windows get damaged, you don’t have to pay for a deductible.
- Identity theft add-on protects your valuable personal information from fraud.
- Free repair if your airbag deploys in an accident.
- If you have a new car—owning one within the first year---and it is totaled, Amica will not charge a deduction for depreciation.
Amica Mutual Car Insurance Discounts
Bundling auto with home or renters insurance and other products gets you a discount
When you insure two or more cars with Amica, you’ll also get a discount.
Amica Mutual Car Insurance Pros & Cons
- Average car insurance premium generally trends lower than national average.
- Provides $1,000 for bail bonds and lost wage coverage if you need to go to court to settle a claim from a covered accident.
- $5,000 maximum gives drivers flexibility to rent car similar to one they own while their car is being repaired.
- Generous discounts.
- High customer satisfaction ratings.
- Low consumer complaints.
- Discounts not available in all states.
- No rideshare insurance.
|J.D. Power (out of 1,000)||891|
|A.M. Best - Financial Strength Rating||A+|
|NAIC Complaint Index||1.32|
Liberty Mutual: Best Car Insurance for Mobile App
Liberty Mutual, like many insurers of its size, offers customers with technological advancements that make your life easier, save you time, and offer you convenience.
In particular, Liberty’s insurance app, available on iOS and Android, can’t be beaten.
The easy-to-use app is designed to provide you with your insurance needs any time you want. It does almost everything its website can, but with more features.
You can access your account, ID card, and important insurance information and documents using the app.
You can easily schedule payments not only by linking your bank account but also by linking your credit or debit card.
The app is also easy to file claims, upload claim photos, get repair quotes, request a rental car after a covered accident, contact emergency roadside assistance and sign documents electronically.
Liberty Mutual Car Insurance Discounts
If you bundle your auto insurance with other policies like home, life, or umbrella coverage, you’ll get a discount.
If you have multiple cars listed on your policy, you’ll get a discount.
Liberty Mutual Car Insurance Pros & Cons
- Accident and roadside support feature on mobile app lets you capture information and photos at the scene of an accident.
- Lots of discounts.
- Offers gap insurance.
- Totaled new car damaged in its first year you own it, and with less than 15,000 miles on it, gets you new car. Other insurers offer the depreciated value.
- If car is totaled, you get another one that’s one year newer and with 15,000 fewer miles on it regardless of age and how much mileage is on car.
- Auto claims satisfaction rating is below average.
- Higher policy rates based on credit and driving record.
|J.D. Power (out of 1,000)||818|
|A.M. Best - Financial Strength Rating||A|
|NAIC Complaint Index||1.80|
GEICO: Best Car Insurance for the Cheapest Rates
GEICO is known for its easy-to-use website and robust mobile app that makes it super easy for you to get a quote or make a claim.
GEICO is also known for having the lowest rates in the auto insurance industry.
So how does GEICO keep its rates low? There are several factors.
Because GEICO has the longest list of discounts—over twenty—you are guaranteed to have a lower premium.
Here are other ways that GEICO uses to lower your rates:
- If you add multiple drivers to your policy.
- If you combine auto and home policies.
- If you pay for your policy in full.
- If you complete a defensive driving course.
- If you keep your driving record clean.
- If you update your policy info many times each year.
- If you have safety and anti-theft devices on your car
- If you practice safe driving.
GEICO’s affordable rates don’t mean you have to compromise on service and features. It offers everything the typical auto insurer has, but is cheaper.
Read a full GEICO car insurance editorial review.
GEICO Car Insurance Discounts
If you bundle multiple insurance products, you’ll get a discount.
GEICO Auto Insurance Pros & Cons
- Can access policy information using Google Assistant or Alexa.
- Prices are the most competitive against other insurers.
- Nearly instant claims.
- Easy online quoting and purchasing.
- Multi-purpose app.
- Coverage options limited.
- No local presence.
- No phone support except for emergencies.
|J.D. Power (out of 1,000)||824|
|A.M. Best - Financial Strength Rating||A++|
Farmers: Best Car Insurance with the Most Discounts
Farmers website and app have a variety of online tools to make them useful and save you time. Using either, you can make or file a claim, pay your bills, and sign up for a policy, for example.
The company’s policy rates can be slightly higher than its competitors, but Farmers makes it up by offering you the most discounts ever and which will significantly lower your premium.
The discounts include the following:
- Alternative fuel vehicle
- If you have anti-theft devices installed in the car.
- Paying premium electronically.
- Getting insurance documents by email rather than mail.
- Good student discount if the student has a GPA of 3.0 or above.
- If you own a home.
- If you pay the premium in full.
- If you are a safe driver.
- Senior defensive driver.
- If you have an umbrella policy.
- If you have a clean driving record.
- If you are a senior and passed a driver’s ed course approved by DMV.
Farmers Auto Insurance Multi-Car/Multi-Policy Discount
Discount if two or more cars are insured with Farmers.
Discount if you bundle auto with renters, homeowners, or condo insurance.
Farmers Car Insurance Pros & Cons
- Excellent selection of coverage options and add-ons.
- Customized mobile app.
- Customer service highly rated.
- Handles claims promptly.
- Fewer complaints than expected for a company of its size.
- Premium rates higher than national average.
- Slow roadside assistance.
- Customers less likely to renew than average.
|J.D. Power (out of 1,000)||839|
|A.M. Best - Financial Strength Rating||A|
|NAIC Complaint Index||1.19|
Allstate: Best Car Insurance That Rewards You for Good Driving
Allstate is one of the largest auto insurers in the country and yet stays competitive by offering its customers rewards for safe driving habits.
With this program, which is separate from Allstate’s auto policy, you can also save some extra money.
The Drivewise Program
Here’s how it works. You fit a device into your car while using the mobile app. Both work together to document your driving, including:
Time of Day
Drivewise tracks the time when you start driving and the time you end your trip using your local time.
Calculates your average speed, as well as how long you are driving that exceeds 80 MPH.
Stops and Starts
This tracks how many times you accelerate too quickly and how many times you keep braking.
Once you end your trip, Drivewise gives you feedback about your driving habits and calculates how many points you’ve earned.
Just by being a safe driver, Allstate rewards its policyholders with a discount on their premium.
In addition, every six months you drive safely, you get cash back. Also, you earn reward points that can be redeemed for merchandise, gift cards, and shopping discounts.
Plus, you can earn 15,000 points if all you do is download the app and activate an account with Allstate.
Allstate Car Insurance Discounts
Get reduced rates if you bundle car insurance with life or homeowners insurance.
Allstate Car Insurance Pros & Cons
- Accident forgiveness coverage.
- New car replacement coverage.
- Safe-driving bonus every six months.
- Discounts for good students and safe drivers.
- Mobile app can access policy documents and request roadside assistance.
- Ability to file claims on website.
- Able to delete trips where you weren’t the driver.
- Some great add-ons, but they are costly.
- If you want on-call hand-holding, Allstate may be too large of a company for your needs.
- Discounts vary by state.
|J.D. Power (out of 1,000)||826|
|A.M. Best - Financial Strength Rating||A+|
|NAIC Complaint Index||4.04|
State Farm: Best Car Insurance for Teens and Young Drivers
State Farm is one of the oldest auto insurers in the nation. With auto, home, renters, and umbrella insurance policies, you are able to consolidate all of them when you buy insurance from State Farm.
State Farm also has many perks, but the one that stands out is its coverage for teens or young drivers.
To reduce young adult insurance premiums, you can do the following:
- Purchase a safe car for your teen
- Reduce or remove comprehensive and collision insurance.
- Increase the deductible on your teen’s coverage.
To save money, you can add these discounts for your teen driver.
State Farm Car Insurance Discounts
Good Student Discount
You can save up to 25% if your teen driver gets good grades. That means your teen should have a GPA of 3.0 or higher.
Driver Training Discount
If a teen drives your car and is under the age of 21, you get a discount if your teen completes an approved driver’s ed course.
Student Away at School Discount
You also get a discount if one of your drivers is under the age of 25 and operates your covered car and then moves away to college and only uses that car while at home during holidays or school vacations.
By bundling your policies—such as auto and life insurance and homeowners insurance—you may qualify for reduced rates.
State Farm Car Insurance Pros & Cons
- Specializes in teen drivers.
- Numerous discounts.
- Good coverage for rental car and travel expenses.
- Strong overall customer service.
- Offers discounts for paying responsibly and for signing up with automatic payments.
- Higher rates for drivers with poor credit.
- No gap insurance.
|J.D. Power (out of 1,000)||814|
|A.M. Best - Financial Strength Rating||A++|
|NAIC Complaint Index||4.29|
Progressive: Best Car Insurance Policy for Quality Coverages
Progressive is the third-largest provider of auto insurance in the U.S. It is the best insurer for drivers who have blemishes on their driving records. The company offers some of the lowest rates for high-risk drivers, as well as those who have DUI, traffic violations, or speeding tickets.
That said, Progressive also has the best coverages compared to similar insurers. Many companies don’t offer gap insurance, but Progressive does, for example.
Here are the most important programs.
Progressive pays up to 25% above the value of your car if it’s totaled, which covers the balance on your car loan or car lease.
Of note: You must add both comprehensive and collision coverage to your policy to buy gap insurance.
Custom parts and equipment value
This coverage pays to fix or replace customizations you made on your car, up to $5,000.
Pet injury insurance
If your pet is injured in a car accident, this program will pay the vet bill that is included in your collision coverage.
Deductible savings bank
This can reduce your deductible by $50—and down to $0—every six months you remain claim-free. Again, you must have comprehensive and collision coverage to take advantage of the program.
If you drive for Uber, Lyft, Via, GoKid, or other ridesharing companies, you know that your typical insurance (from the rideshare group) covers only the period between accepting a ride and dropping off a customer. This program gives you coverage between rides.
Small accident forgiveness
The insurer won’t raise your premium for claims up to $500.
Large accident forgiveness.
This program won’t raise your rate even if your car accident is catastrophic, but you do need to be insured with Progressive for at least five years and remain accident-free for at least three years.
Read a full Progressive car insurance review.
Progressive Auto Insurance Multi-Policy Discount
Bundling auto with homeowners insurance gives you a discount on both your home and auto policies.
Progressive Car Insurance Pros & Cons
- Wide selection of coverage options.
- Usage-based insurance discount.
- Highly rated mobile app.
- Low rates for high-risk drivers.
- Snapshot program tracks driving habits through app to see how. safely you drive. If you do, you may get a discount.
- Third-largest personal auto insurer in the country.
- Pet injury insurance included in most states if you buy collision coverage.
- Average customer service ratings.
- Snapshot program can raise rates for some drivers.
- Below average rating for car insurance shopping customer satisfaction from JD Power.
|J.D. Power (out of 1,000)||803|
|A.M. Best - Financial Strength Rating||A+|
|NAIC Complaint Index||2.24|
How Does Auto Insurance Work?
Auto insurance covers the costs if you hurt someone after an accident, destroy a car after an accident, and cause damage to a person’s property with your car.
What Does Auto Insurance Cover?
Your coverage will vary by state. However, to drive your car,
there are two main components of an auto insurance policy: bodily injury liability and property damage liability.
Liability insurance covers property damage or injuries you may have caused to others in an accident.
Liability also includes medical payments if you or your passengers were injured in a car accident.
Bodily injury liability pays for injuries you cause to another driver if you are at fault in the accident. It covers a person’s medical expenses and lost wages if the person can’t work due to bodily injuries. It also covers funeral costs.
Property damage liability is when you damage property that’s not your own while driving, such as a fence, a garage, or other structure. Property damage will cover any expenses related to repairs or replacements.
The key takeaway here is that liability insurance only covers injuries or damages that you cause to others. It never pays for injuries you sustain or damages to your property.
Is Auto Insurance Mandatory?
Illinois law requires all motor vehicles in Illinois to be covered by auto insurance.
However, to drive legally, you only have to carry liability insurance.
This means it is optional to purchase additional car insurance, such as personal injury protection, uninsured/underinsured motorist, and comprehensive and collision coverage.
Keep in mind if you financed your car, a bank or lienholder may require you to carry higher limits to the minimum amounts required by the state.
What are the Minimum Amounts of Liability Insurance Required by the State of Illinois?
The minimum liability coverage is set at 25/50/20.
- $25,000 for bodily injury per person.
- $50,000 bodily injury per person
- $20,000 property damage per accident
Should You Increase Your Liability Limits?
Illinois requires a minimum level of liability coverage, as indicated above. But if you don’t feel like the minimum is enough, you should get higher coverage limits.
If your policy limits are exhausted or you have reached your accident limits, you will be held responsible for the remaining out-of-pocket costs.
As such, it is strongly suggested to increase your liability limits beyond the required amount.
Just remember, it’s better to be overinsured than underinsured.
Is Illinois a Fault State?
Illinois is what’s known as a fault state. This means that the driver who causes the accident is responsible for covering the damages.
Other Types of Insurance You May Need
Comprehensive / Collision Coverage
Comprehensive collision pays for your car when you cause physical damage due to a non-collision-related incident. These include theft, fire, hail damage, falling objects, contact with animals such as deer, vandalism, glass breakage, and storm damage.
You must buy comprehensive coverage to purchase collision coverage.
Liability insurance doesn’t cover your car or any injuries after an accident. If you want coverage for your car, you need to purchase collision coverage
Collision coverage protects your car against accidents.
If you incur physical damage from a collision with another car or object or property (such as mailboxes, trees, light posts, and other inanimate objects) collision will repair your car minus your deductible.
Personal Injury Protection (PIP)
This covers your own medical treatment if you are in a car accident, regardless of who caused the accident.
In no-fault states, PIP coverage is mandatory.
However, Illinois is not a no-fault state. PIP is not even available in Illinois.
This protects you when you have an accident where the motorist is at-fault and either doesn’t carry insurance or else has insurance limits that are not enough to reimburse you for damages the motorist caused.
Uninsured/Underinsured Motorist will pay you the difference between your expenses and the policy limit of the other motorist.
What are the Factors that Determine Your Premium?
Insurance premiums vary a lot by insurers because each considers certain factors while offering policies to people. This means no two insurers will have identical prices for the same policy.
There are many factors that Illinois auto insurers use to calculate your rate.
Factors such as the age of your car, your car engine’s cubic capacity, and the insured declared value of your vehicle (IDV), are just some examples.
Here are the most important factors that can impact your auto premium.
Young people and teenagers will increase your rate because it’s assumed that they drive more recklessly and get into many accidents.
Older generations will see their rates increase due to natural aging, such as having vision problems or limited bodily movement.
If you have a good credit score, you’ll pay less. If you have poor credit, insurers will believe that you are more likely to skip payments or not pay at all and you are also more likely to file claims. So, your premium will be higher.
If you have a bad driving record, insurers will likely charge you more because insurers believe that your current driving history will be reflected in the future.
Statistically, women tend to drive more safely than men, which means their rate will be low.
As for men, they are often risk-takers on the road and, as such, will pay a higher premium.
What Does Car Insurance Not Cover?
Any contents or personal effects inside your car that have been stolen or robbed, such as expensive stereo systems.
Any damage you caused intentionally.
Normal wear and tear.
Mechanical failure unrelated to a covered event.
How to Save on Car Insurance in Illinois
The best way to get a rate that fits your budget is to shop around and get quotes from several insurers. Keep in mind that all quotes should cover the same amount of coverage and deductibles that you want.
In addition, you should give each auto insurer the same information for drivers and cars that you want to be covered. Only then can you shop around properly by comparing quotes to find the insurer you like the best.
The greater the coverage amounts, the better your policy will be.
But that will increase your rate. If you are on a budget, the best thing to do is to apply for as many discounts as possible that an auto insurer may provide.
How Much Does Car Insurance Cost in Illinois?
The cost of your auto policy varies depending on different factors, such as those described above.
That said, the average monthly cost of minimum car insurance in Illinois is $35 per month or $445 per year.
The average monthly cost of full coverage car insurance in Illinois is $125 per month or $1,490 per year.
Insurers give rates tailored to the customer’s risk, which is how probable it will be if he or she makes a claim. The less risky you are, the lower your premium.
How We Picked and Ranked the Best Auto Insurance Companies
Here are some of the factors we took into consideration when picking the best insurers on our list:
Discounts help to make auto insurance affordable.
So, we looked at insurers that had the most discounts so you can save.
If an insurer had a premium above the national average, you could still consider it. In our research, we found that even the most expensive insurers offered discounts that could significantly lower your rate.
We looked at an insurer’s coverages to see if they were useful enough to
purchase. If an insurer had a wide range of them, such as gap coverage. protection from uninsured/underinsured motorists, and being able to access roadside assistance on your mobile app, to name a few, we put that company on our list.
And then we looked at coverages that are not typically seen by a standard policy.
If a company had a website and mobile app, and both could simplify your life by allowing you to do several things related to your policy online, then that’s an insurer that we put on our list. Things like being able to file a claim, track a claim, and using electronic tools that allow you to compare auto insurance policies, were meaningful for us.
An insurer with a low premium and the ability to lower it more by using discounts ranked higher on our list than others.