The words “low-priced” and “auto insurance” really should not be used together, in particular when you are shopping around for the best car insurance rates for a learners permit. Let’s introduce you to some of the things that can significantly affect auto insurance premiums, and see how we can help you reduce the price of the next policy you buy.
Shopping around for low-priced insurance is easier said than done, and deciding which company has the most affordable car insurance rates for a learners permit will take more quotes for comparison. Each insurer has a unique approach to establish rates, so we’ll go over the overall cheapest car insurance companies in Chicago, IL.
It’s important that readers know that Chicago, IL car insurance rates are calculated based on many things which can substantially decrease or increase your annual premium. This is why consumers need to take the time to shop around to find the most budget-friendly car insurance rates for a learners permit. Insurance prices are calculated by many factors and change dramatically, so the best option six months ago may now be quite expensive.
Compare Cheap Insurance Quotes in Illinois
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | The Hartford | $769 |
| 2 | Rockford Mutual | $822 |
| 3 | Titan | $878 |
| 4 | Erie | $887 |
| 5 | Cincinnati Insurance | $924 |
| 6 | USAA | $950 |
| 7 | Travelers | $952 |
| 8 | Utica National | $984 |
| 9 | State Farm | $1,002 |
| 10 | SECURA | $1,005 |
| 11 | Safeco | $1,053 |
| 12 | Auto-Owners | $1,064 |
| 13 | GEICO | $1,074 |
| 14 | Amica | $1,120 |
| 15 | Farmers | $1,135 |
| 16 | California Casualty | $1,197 |
| 17 | Esurance | $1,197 |
| 18 | Progressive | $1,206 |
| 19 | MetLife | $1,207 |
| 20 | State Auto | $1,223 |
| Quote Your Rates Go | ||
The Hartford quotes some of the most affordable car insurance rates in Chicago at around $769 each year. Rockford Mutual, Titan, Erie, and Cincinnati Insurance are also some of the more affordable Chicago, IL insurance companies.
As the rates illustrate above, if you are a customer of Erie and switched to The Hartford, you may realize an annual savings of in the vicinity of $118. Illinois drivers with Cincinnati Insurance could save as much as $155 a year, and USAA policyholders might realize rate reductions of up to $181 a year.
Bear in mind that those premium estimates are averages for all types of drivers and the different vehicles they drive and and are not figured with a specific vehicle garaging location for a learners permit. So the car insurance company that fits you best may not even be in the top 36 companies shown above. That emphasizes why you need to get rate quotes from many companies using your own driver information and specific vehicle type.
The car, truck, or SUV requiring insurance is a large factor when comparing quotes for cheap auto insurance for a learners permit. Vehicles with high performance, a lack of advanced safety features, or a high likelihood of having liability claims will cost quite a bit more to insure than more economical and safe models. The next table showcases auto insurance rates for a number of the most cost-effective automobiles to insure.
| Make, Model, and Trim Level | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V EX 2WD | $7,656 |
| Ford Escape XLT 4WD | $7,725 |
| Honda Accord EX-L 4-Dr Sedan | $8,188 |
| Toyota Prius | $8,258 |
| Dodge Grand Caravan CV | $8,610 |
| Toyota Tacoma 4WD | $8,620 |
| Honda Odyssey EX | $9,004 |
| Chevrolet Impala LS | $9,013 |
| Ford Edge SEL AWD | $9,004 |
| Toyota Camry LE | $9,073 |
| Toyota RAV4 Limited 4WD | $9,081 |
| Dodge Ram 3500 Crew Cab Laramie 2WD | $9,143 |
| Ford Explorer Limited 4WD | $9,153 |
| Toyota Corolla S | $9,539 |
| Hyundai Elantra GLS 4-Dr Sedan | $9,549 |
| GMC Sierra SLT Extended Cab 2WD | $9,609 |
| Jeep Grand Cherokee SRT-8 4WD | $9,617 |
| Get a Custom Quote Go | |
Table data represents 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 zip code location which can raise or lower prices noticeably.
Looking at the data, we can tell that cars like the Honda CR-V, Ford Escape, Honda Accord, Toyota Prius, and Dodge Grand Caravan are going to be some of the most affordable vehicles to insure for new drivers. The price of auto insurance will tend to be more expensive anyway because there is more exposure for a learners permit, but generally speaking those particular models will tend to have the least expensive rates compared to other types of vehicles.
Liability rates compared to full coverage
Saving on car insurance should be important to most vehicle owners, and one of the quickest ways to lower the cost of insurance for a learners permit is to buy only liability coverage. The information below illustrates the comparison of auto insurance rates with full physical damage coverage compared to only buying liability only. The premiums assume no tickets, no at-fault accidents, $1,000 deductibles, drivers are single, and no policy discounts are applied.
On average, physical damage insurance costs an additional $1,193 per year more than just buying liability insurance. At some point, every insured wonders when is it a good idea to stop buying full coverage. There is no set guideline of when to drop full coverage, but there is a general guideline you can use. If the annual cost of having full coverage is more than 10% of the vehicle’s replacement cost less your deductible, then it might be time to consider dropping full coverage.
There are some cases where dropping full coverage is not in your best interest. If you still owe money on your vehicle, you are required to maintain full coverage in order to prevent the bank from purchasing higher-priced coverage. Also, if you can’t afford to buy a different vehicle in the even your car is totaled, you should keep full coverage.
Get discounts on Chicago car insurance rates
Insurance providers that sell policies for a learners permit may provide policy discounts that may potentially lower prices by as much as 30% if you meet eligibility requirements. A list of car insurance companies and a selection of discounts are detailed below.
- State Farm policyholders can earn discounts including student away at school, safe vehicle, accident-free, Drive Safe & Save, and good driver.
- Esurance discounts include safety device, anti-lock brakes, defensive driver, emergency road assistance, claim free, and renters.
- Progressive offers discounts for good student, online signing, multi-vehicle, multi-policy, continuous coverage, and online quote discount.
- Liberty Mutual may offer discounts for newly retired, new graduate, new move discount, exclusive group savings, hybrid vehicle, new vehicle discount, and newly married.
- Auto-Owners Insurance has savings for safe driver, multiple vehicles, multi-policy, air bags, paid in full, paperless, and group or association.
- GEICO may include discounts for seat belt use, driver training, federal employee, multi-policy, and defensive driver.
The example below illustrates the comparison of insurance rates with and without discounts applied to the policy rates. The data assumes a male driver, no tickets, no at-fault accidents, Illinois state minimum liability limits, comp and collision included, and $100 deductibles. The first bar for each age group shows premium with no discounts. The second shows the rates with continuous coverage, paperless filing, anti-theft, vehicle safety, paid-in-full, and good student discounts applied. When taking advantage of discounts, theamount saved on car insurance for a learners permit is 28% or $542.
How accidents and violations affect rates
A great way to earn good car insurance premiums in Chicago for new drivers is to drive safely and avoid accidents and violations. The example below illustrates how traffic citations and at-fault claims drive up insurance rates for different age groups. The data is based on a married female driver, full coverage, $250 deductibles, and no additional discounts are factored in.
The chart shows that the average cost of auto insurance in Illinois per year with no accidents and a clean driving record is $1,177. Factor in two speeding tickets and the average cost increases to $1,673, an increase of $496 each year. Now add in two accidents along with the two speeding tickets and the yearly cost of car insurance for a learners permit goes up to an average of $3,420. That’s an increase of $2,243, or $187 per month, just for not driving attentively!
Why you should shop around
Chicago car insurance rates are based on many factors which can significantly increase or decrease the cost of your policy. Getting older, buying a different vehicle, or getting a driving violation may prompt premium changes that may make certain companies more affordable than others.
In addition, car insurance companies modify rates as needed in order to remain profitable. Higher than normal claim frequency or severity can cause higher rates, while a lower level of claims may produce cheaper Chicago car insurance rates.
The bar chart below shows rates for the cheapest car insurance in Chicago, IL for a 40-year-old female driver with a good driving record, no prior claims, and a good credit rating. If we compare prices based on her current risk factors, The Hartford may have the most affordable car insurance rates in Chicago at $1,174 a year. This is $175 less than the average price paid by Illinois drivers of $1,349. Rockford Mutual, Titan, Erie, and Cincinnati Insurance are the remaining best Chicago, IL auto insurance companies.
Now we will pretend the driver from the above example a claim surcharge, a lower credit rating, and an imperfect driving record. Since each company uses a different method to establish rates, comparing insurance quotes may now show a significantly different list of affordable companies as shown below.
Utica National now has the lowest price on auto insurance in Chicago, IL with State Farm, Travelers, SECURA, and Safeco now rounding out the top five. This illustrates why Chicago drivers need to compare rates to find affordable insurance quotes for a learners permit. Auto insurance prices are calculated by many different factors and can decrease or increase without notice, so the cheapest company the last time you checked may now be costing you a lot of money.