Compare Quotes from Top Providers and Save now!

Inadequate regulations contribute to 45% increase in auto insurance costs in Illinois

Auto insurance spending rose by an average 43.3 percent across the country when compared to 1989. At an insurance rate increase of 45 percent, Illinois is one of thirty eight states that saw their insurance rates increase above the national average of 43.3 percent over the 21 years from 1989 to 2010.

Residents of Illinois spent, on average, $505.32 on auto insurance in 1989. The figure has risen to $732.56 as of 2010. The average figure for 2010 ranks Illinois 24th in the country based on insurance premium whereas it was ranked 21st back in 1989. Illinois’ 45 percent increase in insurance rates is higher than the national average of 43.3 percent. However, when compared to states such as California (-0.3%), Hawaii (13.7%) and New Hampshire (15.9%), the rate change in Illinois represents a substantial rise in insurance costs.

A November 2013 study by the Consumer Federation of America found that states that had strong regulation of insurance rates were the most successful in keeping rates low. Illinois’ insurance rates changes are not regulated. There is no review of rates by the state and there is no requirement to file rate changes whether before or after use in the marketplace. As per the study, this lack of regulation has contributed to the higher increase in rates in Illinois when compared to states that have strong regulations.

The National Association of Insurance Commissioners (NAIC) auto database report of 2012 gives Illinois a Herfindahl–Hirschman Index (HHI) score of 1216. The Department of Justice considers a score of 1000-1800 as a moderately concentrated marketplace. A score of less than 1000 is considered a competitive marketplace. Illinois score of 1216 renders is only moderately competitive compared to states like California (753), New Hampshire (714) or Maine (633) which are highly competitive. Insurance costs are, thus, on the rise in Illinois in large part due to the paucity of strong regulation to keep rates low.

Drinking and Driving – and expensive mistake in Illinois

Auto insurance law in Illinois requires vehicles to be insured before they can be driven on the roads. Liability insurance and uninsured motorist coverage are both mandatory in Illinois. Proof of insurance must be carried at all times that the vehicle is being driven, and must be produced upon request by a law enforcement officer.

Auto insurance rates vary across the state of Illinois but average at $1322, as of December 2013. If you’re in Chicago you can expect to pay $1675 on an average. In Champaign you’ll pay $869 which is well below the statewide average. There are many factors that affect insurance premium rates such as age, gender, the type of vehicle you drive and so on. Your previous driving record is one of the main factors in determining your premium payments.

It’s well known that accidents drive up insurance costs. However, getting caught driving while under the influence (DWI) can drive up your insurance premium even more than accidents. To illustrate this point, let’s take the example of Chicago. If you live in Chicago and are involved in a car accident, your premium will rise from $1675 to $2063 on an average, as of December 2013. A second accident will drive your premium up to $3077.

On the other hand, if you are convicted of DUI your premium will shoot up to $3116. That’s $39 more than your premium after two accidents. And it doesn’t end there. Your premiums will remain at the higher rate for three years after conviction and will only revert to the original levels after seven years.

Completing a defensive driving course is one way to bring your premium payment down a little. Sticking to the example of Chicago, your premium will go down from $3116 to $2649 if you complete a defensive driving course. That means you are is still paying $586 more than you would if you’d had one accident. Drinking and driving can be a very expensive mistake. If you know you’ll be drinking on a particular night, it will be wiser to use a taxi service.

Illinois Auto Insurance Rates

Below are the minimum, average and maximum insurance rate estimates for neighbourhoods in and around Illinois, IL.

Lowest Rate:$800
Average Rate:$1,300
Highest Rate:$2,500

Recent Savings From Top Providers in Illinois

Rank Customer Zipcode Amount Saved
1 61259 $291
2 61900 $284
3 52761 $282
4 60002 $280

Compare Auto Insurance Companies in Illinois

Company A.M Best Rating on
Financial Strength
Year Founded
Progressive A+ 1937
State Farm A++ 1922
Allstate A+ 1931
GEICO A++ 1936
Farmers A 1928
Nationwide A+ 1925
Liberty Mutual A 1912
American Family A 1927
Erie A+ 1925

Illinois Auto Insurance Requirements

Minimum limits of liability for auto insurance in Illinois as per IL State Laws

Bodily Injury Liability

  • $20,000 for death/injury of any one person, per accident.
  • $40,000 for all persons per accident.

Property Damage Liability

  • $15,000 per accident.

Illinois Car Insurance Average Rates by Make

In addition to the location, one key factor that contributes to the insurance rates in Illinois is the vehicle's make and model. Especially the vehicle's theft rates in Illinois

MakeInsurance Average PremiumView Details
MakeInsurance Average PremiumView Details

Related Links for Auto Insurance Alabama

Write Your Review & Save Money

Learn from people in your town & neighborhood on what coverage they have & who they close & how they saved money

Latest Auto Insurance Reviews in Illinois

Progressive

$84.00 per month

I have been insured with IFA Auto Insurance for over 5 years. Every month I pay $84.00 and it is for full coverage on my GMC Envoy. I live in Wheeling, WV and I have been driving since I was 16 years of age. I have had no accidents and only recently had a claim due to a fire on my last vehicle. My coverage is pretty much the same as all full coverage. I have 15/30 for just about everything. My deductibles are $500 for comprehension and collision. I did not add any extras because it would get too expensive. I work from home so really the furthest I have to drive is back to Washington, PA to visit my family. Years ago I had Progressive and did not like them. Their rates were extremely high for what I needed so I went with IFA. I save about $450 a year with IFA. I would give IFA a 5 because they are easy to get along with and they have great payment options!

State Farm

$86.72 for 1 Month

My driving record is excellent and I have not had any accidents in over 20 years and have never had a DUI. I am insuring a 2013 Hyundai Sonata. I am a female, 45, divorced. I drive approximately 80 miles per day to and from work Monday - Friday. I have full coverage on my vehicle witih $250 deductibles for comp and collision. I chose my current provider because I have been with State Farm for over 20 years and I trust them and appreciated their level of service. I also have my renter's insurance through State Farm also.