The vehicle needing coverage is one of the primary factors that determines whether or not you can buy affordable insurance for first-time drivers. Vehicles with high performance, poor passenger safety features, or a track record of large liability claims will cost substantially more to insure than safer models. The information below shows auto insurance costs for a number of the more affordable automobiles to insure in Illinois.
| Vehicle Insured | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V EX 2WD | $8,289 |
| Ford Escape Limited 4WD | $8,869 |
| Honda Accord EX-L 4-Dr Sedan | $8,876 |
| Toyota Prius | $8,945 |
| Dodge Grand Caravan CV | $9,328 |
| Ford F-150 XLT Super Cab 2WD | $9,333 |
| Honda Odyssey EX W/Rear Entertainment | $9,757 |
| Ford Fusion S 4-Dr Sedan | $9,833 |
| Volkswagen Jetta S 4-Dr Sedan | $9,843 |
| Toyota RAV4 Limited 4WD | $9,833 |
| Chevrolet Equinox LS AWD | $9,839 |
| Toyota Camry LE | $9,833 |
| Chevrolet Impala LT | $9,843 |
| Compare Cheap Rates Go | |
Data rating is based on 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 garaging location which can raise or lower price quotes significantly.
Based upon these rates, models like the Honda CR-V, Ford Escape, and Honda Accord should be some of the cheaper vehicles to insure for new drivers. Auto insurance rates will be higher anyway because of the fact that there is more claim risk for first-time drivers, but generally speaking those vehicles will tend to have the least expensive rates compared to other vehicles.
Trying to buy reasonably-priced car insurance is not most people’s favorite thing to do, and figuring out which company offers the best auto insurance rates for first-time drivers may require even more perseverance. Each insurance company uses a slightly different approach to set their prices, so first let’s look at the rankings for the auto insurance companies with the overall cheapest rates in Chicago.
It’s important that you understand Chicago, IL auto insurance rates are impacted by many things which can significantly increase or decrease the cost of having a policy. This price fluctuation is why it is so important to spend some time comparing rates to get the most economical insurance quotes for first-time drivers. Auto insurance prices can be altered by many different factors and can decrease or increase without notice, so the most economical company two years ago may now be quite expensive.
Find Cheaper Auto Insurance for Inexperienced Drivers
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | The Hartford | $776 |
| 2 | Rockford Mutual | $813 |
| 3 | Erie | $878 |
| 4 | Titan | $878 |
| 5 | Cincinnati Insurance | $924 |
| 6 | Travelers | $952 |
| 7 | Utica National | $955 |
| 8 | State Farm | $972 |
| 9 | SECURA | $975 |
| 10 | USAA | $988 |
| 11 | Auto-Owners | $1,053 |
| 12 | Safeco | $1,053 |
| 13 | GEICO | $1,085 |
| 14 | Amica | $1,120 |
| 15 | Farmers | $1,146 |
| 16 | California Casualty | $1,173 |
| 17 | MetLife | $1,220 |
| 18 | State Auto | $1,223 |
| 19 | Esurance | $1,233 |
| 20 | Progressive | $1,243 |
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The Hartford offers some of the cheapest car insurance rates in Chicago at around $776 per year. Rockford Mutual, Erie, Titan, and Cincinnati Insurance also qualify as some of the lowest-priced Chicago, IL insurance companies.
As shown above, if you have coverage with Erie and switched to The Hartford, you could see yearly savings of roughly $102. Drivers with Titan might save as much as $102 a year, and Cincinnati Insurance policyholders might lower prices by up to $148 a year.
Remember that these policy rates are averages across all drivers and vehicles in Illinois and are not factoring in a specific vehicle garaging location for first-time drivers. So the insurer that is most affordable for your situation may not even be in the top 36 companies in the list above. That point stresses why you need to quote rates from many companies using your own personalized driver profile and vehicle information.
Get discounts on Chicago auto insurance rates
Car insurance companies that offer quotes for first-time drivers may provide discounts that could reduce prices by 35% or more if you qualify. A list of auto insurance companies and their offered discounts include:
- Progressive offers discounts including online quote discount, multi-vehicle, continuous coverage, multi-policy, good student, and online signing.
- Farmers Insurance may have discounts that include early shopping, switch companies, multi-car, teen driver, bundle discounts, and good student.
- Farm Bureau has savings for driver training, multi-vehicle, renewal discount, good student, and 55 and retired.
- State Farm has discounts for good driver, Steer Clear safe driver discount, driver’s education, accident-free, and anti-theft.
- GEICO offers premium reductions for military active duty, defensive driver, air bags, multi-vehicle, and good student.
- SAFECO offers discounts for drive less, anti-lock brakes, bundle discounts, multi-car, and accident prevention training.
- Liberty Mutual may include discounts for new move discount, preferred payment discount, multi-policy, good student, safety features, and multi-car.
The information below illustrates the comparison of car insurance costs with and without discounts applied. The premiums assume a male driver, no accidents, no driving violations, Illinois state minimum liability limits, full physical damage coverage, and $500 deductibles. The first bar for each age group shows premium with no discounts. The second bar shows the rates with continuous coverage, passive restraint, vehicle safety, paperless filing, good student, and anti-theft discounts applied. With discounts applied, theaverage amount saved on auto insurance for first-time drivers is 28% or $616.
Choosing the right company can be rather challenging considering how many companies there are in Illinois. The rank data below can help you analyze which coverage providers you want to consider when shopping your coverage around.
These rankings are only made up of major nationwide insurance companies, so companies without a large exposure are not included in the list. If you would like to check rates from these and other companies in Illinois, just click here.
| Company | Value | Customer Service | Claims | Customer Satisfaction | A.M Best Rating | Overall Score |
|---|---|---|---|---|---|---|
| USAA | 99 | 100 | 90 | 92% | A++ | 97.4 |
| 21st Century | 89 | 86 | 100 | 88% | A | 92.7 |
| GEICO | 97 | 91 | 88 | 85% | A++ | 92.5 |
| Nationwide | 88 | 94 | 91 | 88% | A+ | 91.3 |
| AAA Insurance | 93 | 87 | 88 | 87% | A | 90.8 |
| Liberty Mutual | 91 | 91 | 92 | 87% | A | 90.7 |
| Safeco Insurance | 90 | 93 | 88 | 86% | A | 90.2 |
| State Farm | 91 | 94 | 80 | 88% | A++ | 90.2 |
| Travelers | 89 | 91 | 94 | 79% | A++ | 90.1 |
| American Family | 88 | 92 | 83 | 88% | A | 89.4 |
| Titan Insurance | 89 | 91 | 83 | 86% | A+ | 89.3 |
| Allstate | 90 | 90 | 84 | 85% | A+ | 89.1 |
| Progressive | 83 | 85 | 99 | 87% | A+ | 88.7 |
| Erie Insurance | 92 | 90 | 82 | 88% | A+ | 88.5 |
| Mercury Insurance | 87 | 95 | 87 | 84% | A+ | 88.3 |
| Compare Rates Now Go | ||||||
Data Source: Insure.com Best Car Insurance Companies
Does full coverage make sense?
Saving on auto insurance should be important to the majority of people, and an easy way to pay lower rates for insurance for first-time drivers is to only pay for liability coverage. The diagram below shows the difference between car insurance rates with and without physical damage coverage. The premium estimates are based on no accidents, no driving violations, $100 deductibles, drivers are not married, and no discounts are factored in.
As an average for all age groups, full coverage costs an extra $2,046 per year over and above liability only. At some point, every insured wonders if paying for full coverage is a waste of money. There is no specific rule for phasing out full coverage on your policy, but there is a guideline you can consider. If the annual cost of comprehensive and collision coverage is more than 10% of the replacement cost of your vehicle minus the policy deductible, the it may be a good time to stop paying for full coverage.
There are a few cases where only buying liability is not recommended. If you haven’t paid off your loan, you have to maintain full coverage to protect the lienholder’s interest in the vehicle. Also, if your emergency fund is not enough to purchase a different vehicle if your current one is in an accident, you should not consider dropping full coverage.
The agents listed below can most likely answer your questions and help you decide which coverage fits your budget, since some drivers wish to get some professional input when trying to find the best insurance rates for first-time drivers. It’s not always easy to find the cheapest auto insurance company, so insurance agents can bring peace of mind knowing your coverage gives you decent coverage if you have a claim. To find a Chicago insurance agent in your neighborhood, click the button below the list or click here to compare price quotes.
- Angela Roudez – State Farm Insurance Agent
1505 S State St – Chicago, IL 60605 – (312) 663-1820 - Eagle Insurance Agency
3517 N Spaulding Ave – Chicago, IL 60618 – (773) 463-7576 - Public Insurance Agency
3656 N Cicero Ave – Chicago, IL 60641 – (773) 725-9333 - Illinois Vehicle Auto Insurance
100 W. Randolph, Suite C14 – Chicago, IL 60601 – (312) 201-9111