If you live in Chicago, you know that car insurance isn’t just a legal requirement—it’s a monthly cost that can take a real bite out of your budget. With everything from bumper-to-bumper traffic to unpredictable weather, it’s essential to have reliable and affordable auto insurance in the Windy City.
But here’s the good news: Chicago has plenty of cheap car insurance providers, and finding the right one for your needs can save you hundreds—if not thousands—each year.
In this guide, we’ll reveal the top 7 cheapest car insurance companies in Chicago, compare their offerings, and help you choose the most cost-effective and dependable option based on real data.
How Much Does Car Insurance Cost in Chicago?
Before we dive into the cheapest companies, here’s a quick snapshot of what drivers typically pay in Chicago.
| Driver Profile | Average Monthly Premium |
| Good Driver (Age 35) | $105 – $140 |
| Teen Driver (Age 18) | $310 – $450 |
| Senior Driver (Age 65) | $90 – $120 |
| Driver with DUI | $190 – $300 |
| Minimum Liability Only | $40 – $70 |
Note: Rates vary based on driving history, ZIP code, vehicle type, and coverage level.
What Impacts Car Insurance Rates in Chicago?
Chicago’s car insurance premiums are generally higher than the Illinois average due to several factors:
- High traffic volume and accident rates
- Weather-related risks like snow and ice
- Vehicle theft rates (some neighborhoods are high-risk zones)
- Urban congestion and population density
Top 7 Cheapest Car Insurance Companies in Chicago
Here’s our list of the most affordable car insurance companies in Chicago, based on average pricing, customer satisfaction, coverage options, and digital tools.
1. GEICO
Average Rate in Chicago: ~$95/month
Best For: Low rates for good drivers
GEICO consistently ranks as one of the cheapest providers in Chicago. With generous discounts for safe drivers, military members, and good students, it’s a great option for budget-conscious drivers.
Pros:
- Competitive rates
- Strong mobile app
- Wide range of discounts
Cons:
- Limited local agents
- Not ideal for high-risk drivers
2. State Farm
Average Rate in Chicago: ~$100/month
Best For: Drivers who want local agents
State Farm combines solid customer service with affordable rates, especially for drivers who bundle auto and home insurance.
Pros:
- Large network of local agents in Chicago
- Drive Safe & Save program for usage-based discounts
- Excellent claims process
Cons:
- Fewer discounts than some competitors
- Rates can increase after claims
3. Progressive
Average Rate in Chicago: ~$110/month
Best For: High-risk or new drivers
Progressive is popular for its Name Your Price Tool and flexible policies. It’s especially helpful for drivers with less-than-perfect records.
Pros:
- Great for drivers with tickets or accidents
- Snapshot usage-based program
- Strong online tools
Cons:
- Customer service can vary
- Average rates may be higher than GEICO
4. Erie Insurance
Average Rate in Chicago: ~$92/month
Best For: Comprehensive coverage at low rates
Erie might not be a household name nationally, but in Chicago, it offers fantastic value and customer satisfaction. The only catch? You must buy through a local agent.
Pros:
- Excellent customer reviews
- Accident forgiveness included
- Competitive pricing
Cons:
- No mobile app
- Limited availability
5. COUNTRY Financial
Average Rate in Chicago: ~$105/month
Best For: Drivers who want customizable policies
Based in Illinois, COUNTRY Financial has strong regional roots and offers personalized service. If you value working with a real person and want flexible coverage, this one’s a top pick.
Pros:
- Local expertise
- Custom-built policies
- Great multi-policy discounts
Cons:
- Limited tech tools
- Not available in every state
6. USAA
Average Rate in Chicago: ~$85/month
Best For: Military families
USAA isn’t available to everyone, but if you’re a military member, veteran, or family, this is easily one of the most affordable and highest-rated providers in the U.S.—Chicago included.
Pros:
- Ultra-low rates
- Top-tier customer service
- Strong financial stability
Cons:
- Only for military and families
- No local branches
7. Travelers
Average Rate in Chicago: ~$108/month
Best For: Bundling with home or renters insurance
Travelers may not have the lowest base rates, but their bundling discounts can bring your costs down significantly. They also offer unique coverage add-ons.
Pros:
- Generous bundling discounts
- Reliable claims service
- Options for rideshare and gap insurance
Cons:
- Slightly higher premiums for basic coverage
Not as many local agents
Rate Comparison Table: Cheapest Providers in Chicago
| Insurance Company | Avg. Monthly Rate | Local Agents | Mobile App | Usage-Based Discount |
| GEICO | $95 | ❌ | ✅ | ✅ |
| State Farm | $100 | ✅ | ✅ | ✅ |
| Progressive | $110 | ✅ | ✅ | ✅ |
| Erie Insurance | $92 | ✅ | ❌ | ❌ |
| COUNTRY Financial | $105 | ✅ | ❌ | ❌ |
| USAA | $85 | ❌ | ✅ | ✅ |
| Travelers | $108 | ✅ | ✅ | ✅ |
How to Get the Cheapest Rates in Chicago
✅ Compare Quotes from Multiple Providers
Use tools like Alias Insurance to get real-time quotes from the top insurance providers in your ZIP code. Rates can vary by hundreds—even for the same driver.
✅ Increase Your Deductible
Opting for a higher deductible ($500 or $1,000) can lower your monthly premium.
✅ Bundle Your Policies
Combine auto with renters, homeowners, or life insurance for discounts up to 20%.
✅ Improve Your Credit Score
In Illinois, credit score affects your rate. Maintaining good credit can save you big over time.
✅ Enroll in Telematics
Usage-based programs like Drive Safe & Save or Snapshot track your driving habits and reward safe behavior with discounts.
Where Can You Get Day-by-Day Car Insurance?
While not every major insurer offers it directly, you can access day-by-day coverage through specialized providers or insurance marketplaces. Some well-known names include:
| Provider | Daily Coverage | Notable Feature |
| Hugo | ✅ Yes | Turn coverage on/off as needed |
| Root Insurance | ✅ Yes | App-based quotes and driving tracking |
| Allstate | ✅ Via partners | Offers temporary coverage options |
| Metromile | ❌ (Per-mile) | Best for long-term, low-mileage users |
You can compare quotes quickly with Alias Insurance—just enter a few details and get matched with providers that offer daily policies in your area.
FAQs: People Also Ask
In Illinois, drivers must carry at least:
- $25,000 for bodily injury per person
- $50,000 per accident
- $20,000 for property damage
But this may not be enough to fully protect you. Many drivers opt for higher limits or full coverage.
Yes. Urban areas like Chicago tend to have:
- Higher accident rates
- More thefts
- Denser traffic
These factors raise premiums compared to rural areas.
Yes, but you’ll pay more than average. Progressive and State Farm often offer competitive rates for high-risk drivers.
Use Alias Insurance to compare quotes from multiple top-rated insurers. Just enter your ZIP code, answer a few questions, and get matched with affordable policies in seconds.
Final Thoughts
Finding cheap car insurance in Chicago isn’t impossible—it just takes a little comparison shopping. Whether you’re a student in Lincoln Park, a commuter in Hyde Park, or a family driver in Wicker Park, there’s a provider out there that fits your budget and coverage needs.
Use this list of the top 7 cheapest car insurance companies in Chicago to guide your search and don’t forget to compare quotes with Alias Insurance for the best deal in real time.
