Finding out which company has the cheapest auto insurance rates for 16 year olds calls for a bit more work in order to find coverage that fits your budget. Each auto insurer uses their own method to determine rates, so we’ll take a look at the most competitive auto insurance companies in Illinois.
It’s important that you understand Illinois auto insurance rates are based on many factors which can significantly increase or decrease the price you pay for coverage. Simply turning a year older, buying a different vehicle, or getting a couple of tickets can produce rate changes that can make some companies more affordable than competitors.
Find Cheaper Auto Insurance for Teens
The Hartford may offer some of the best car insurance rates in Chicago at around $776 per year. This is $573 less than the average rate paid by Illinois drivers of $1,349. Rockford Mutual, Erie, Titan, and Cincinnati Insurance are also some of the cheaper Chicago, IL auto insurance companies.
As shown in the table above, if you have coverage with Titan and switched to The Hartford, you could realize savings of around $102. Policyholders with Cincinnati Insurance may save as much as $121 a year, and USAA policyholders might lower prices by $174 a year.
Bear in mind that those premium estimates are averaged for all insureds and vehicles and are not factoring in a vehicle location for 16 year olds. So the company that can offer you the best rate may not even be in the top 36 companies in the list above. That helps illustrate why you need to quote rates from as many companies as possible using your own individual information.
One of the more important factors that are used to help calculate the amount you pay each year for auto insurance is where your residence is. Regions with more people or even just more weather-related claims tend to have more expensive auto insurance rates, whereas areas with fewer weather claims and lower vehicle theft rates have the enjoyment of a little cheaper coverage.
The following table ranks the most expensive cities in Illinois for 16 year olds to buy an auto insurance policy in. Chicago ranks #2 having an annual price of $1,484 for coverage, which is about $124 per month.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | Cicero | $1,541 |
| 2 | Chicago | $1,484 |
| 3 | Berwyn | $1,464 |
| 4 | Skokie | $1,447 |
| 5 | Oak Lawn | $1,281 |
| 6 | Des Plaines | $1,248 |
| 7 | Evanston | $1,238 |
| 8 | Waukegan | $1,188 |
| 9 | Mount Prospect | $1,181 |
| 10 | Schaumburg | $1,169 |
| 11 | Orland Park | $1,149 |
| 12 | Joliet | $1,145 |
| 13 | Rockford | $1,141 |
| 14 | Elgin | $1,139 |
| 15 | Tinley Park | $1,132 |
| 16 | Bolingbrook | $1,116 |
| 17 | Palatine | $1,109 |
| 18 | Arlington Heights | $1,095 |
| 19 | Peoria | $1,060 |
| 20 | Springfield | $1,059 |
| 21 | Aurora | $1,053 |
| 22 | Decatur | $1,024 |
| 23 | Naperville | $1,022 |
| 24 | Bloomington | $971 |
| 25 | Champaign | $962 |
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Price information shown is estimated as zip code location can increase or decrease prices noticeably.
Full coverage versus liability only rates
Saving money on auto insurance is the goal of most drivers, and one great way to find cheap insurance for 16 year olds is to buy liability only. The diagram below compares insurance costs with full physical damage coverage and with liability coverage only. The premiums are based on no violations or accidents, $250 deductibles, drivers are single, and no additional discounts are factored in.
If we average all the age groups together, full coverage on your policy costs $1,378 per year over liability only. Many people question if paying for full coverage is a waste of money. There is no specific rule of when to exclude physical damage insurance, but there is a general guideline you can use. If the yearly cost of comp and collision coverage is about 10% or more of replacement cost minus your deductible, then it’s probably a good time to buy liability coverage only.
There are some conditions where removing full coverage is not advised. If you have an outstanding loan on your vehicle, you are required to maintain full coverage in order to prevent the bank from purchasing higher-priced coverage. Also, if your savings is not enough to buy a different vehicle in the even your car is totaled, you should maintain full coverage.
The information below illustrates how choosing a deductible can increase or decrease premium costs when quoting cheap insurance for 16 year olds. The premium estimates are based on a single male driver, comp and collision included, and no additional discounts are factored in.
In the chart above, a 30-year-old driver could lower rates by $240 a year by increasing from a $100 deductible to a $500 deductible, or save $364 by selecting a $1,000 deductible. Youthful drivers, like the 20-year-old, can cut as much as $702 annually by using a higher deductible. When using a larger deductible, it will be necessary to have emergency funds available to allow you to cover the extra out-of-pocket expense, which deters some drivers from choosing higher deductibles.
Get discounts on Chicago auto insurance
Insurance providers that sell policies for 16 year olds may also provide premium discounts that could lower prices by as much as 35% or more if you meet the requirements. Popular auto insurance companies and a selection of discounts are detailed below.
- State Farm offers premium reductions for driver’s education, Steer Clear safe driver discount, anti-theft, Drive Safe & Save, and defensive driving training.
- GEICO has savings for multi-policy, anti-theft, seat belt use, emergency military deployment, multi-vehicle, and daytime running lights.
- Liberty Mutual may offer discounts for good student, multi-policy, hybrid vehicle, multi-car, new move discount, and teen driver discount.
- The Hartford may include discounts for vehicle fuel type, defensive driver, driver training, good student, and bundle.
- MetLife includes discounts for good student, accident-free, multi-policy, good driver, and defensive driver.
- Progressive discounts include online quote discount, multi-vehicle, good student, multi-policy, and homeowner.
The information below visualizes the comparison of insurance rates with and without discounts applied to the policy premium. The costs are based on a male driver, no violations or accidents, Illinois state minimum liability limits, full physical damage coverage, and $100 deductibles. The first bar for each age group shows the average annual price with no discounts. The second shows the rates with good student, passive restraint, continuous coverage, paid-in-full, anti-theft, and vehicle safety discounts applied. In this example, theaverage amount saved on auto insurance for 16 year olds is 28% or $602.
Ideas to find more affordable auto insurance for 16 year olds
The list below summarizes some of the recommended thrifty ideas that can help Chicago drivers buy lower-cost coverage.
- Drop full coverage on older vehicles
- Avoid filing small claims
- Violations and traffic tickets increase rates
- Accident-free drivers may qualify for discounts
- Increase your deductibles
- Shop around for lower rates once a year
The last idea is especially critical, as we stressed in the article above. Insurance prices adjust frequently, so don’t be hesitant to switch carriers if you can find a cheaper rate.
Having a favorite company is great, but it’s not recommended if that stubbornness costs you several hundred dollars every year. If you have a few minutes, shop around and find cheaper insurance for 16 year olds in Chicago.
If you aren’t sure which coverage to buy and prefer to get some professional input when shopping around for cheaper insurance for new drivers, the agents listed below can provide answers to your questions and help you determine which coverages and limits you need. To find an auto insurance agency using an interactive map, click the button link following the list.
Allstate Insurance: Maribel Marron
3060 W Armitage Ave – Chicago, IL 60647 – (773) 572-9495
John Kim – State Farm Insurance Agent
5700 N Lincoln Ave #209 – Chicago, IL 60659 – (773) 561-1700
Liane Williams – State Farm Insurance Agent
3143 W 71st St – Chicago, IL 60629 – (773) 436-7500