How to Save on Car Insurance in Chicago

How long has it been since you compared quotes for low-cost insurance rates in Chicago, IL? Using the web to shop for Chicago car insurance quotes online may seem complicated initially if you are one of the many people new to online price comparisons. Don’t let the process intimidate you because we’re going to show you how.

Unbelievable but true, a large majority of drivers in Illinois renewed their policy with the same company for four years or more, and 38% of customers have never shopped around. Drivers in the United States could cut their rates by up to $859 a year just by getting comparison quotes, but they don’t believe the rate savings if they switched to a cheaper policy.

These tips will tell you how auto insurance companies operate and how you can save the most money. If you have a current insurance policy, you will most likely be able to save money using the techniques covered below. Nevertheless, Illinois consumers can benefit by having an understanding of how companies sell insurance online.

Chicago auto insurance premiums are influenced by these factors

Many different elements are part of the calculation when premium rates are determined. Some factors are common sense such as your driving record, although others are less obvious such as whether you are married or your commute time. Consumers need to have an understanding of some of the elements that play a part in calculating the rates you pay for auto insurance. If you have a feel for what determines base rates, this allows you to make educated decisions that could result in big savings.

Shown below are a few of the things used by insurance companies to determine your rate level.

• Guys are more aggressive – Over the last 50 years, statistics have shown that females take fewer risks when driving. The data does not necessarily mean that females are better at driving than males. Males and females tend to get into accidents at about the same rate, but guys have accidents that have higher claims. In addition to higher claims, males also receive more costly citations like DWI (DUI) or reckless driving. Males from age 16 to 21 have the highest risk to insure so it costs more to insure them.
• Higher prices for specific jobs – Careers such as military generals, police officers, and stock brokers tend to have higher rates than average because of intense work requirements and extremely grueling work hours. On the other hand, careers like farmers, engineers and homemakers pay lower than average rates.
• Get a ticket, pay higher rates – How you drive has a lot to do with how much you pay for insurance. Even one speeding ticket or other violation can bump up the cost substantially. Drivers with clean records get better prices than people who have multiple driving citations. Drivers who have gotten serious tickets like DUI or reckless driving may need to maintain a SR-22 with their state motor vehicle department in order to legally drive a vehicle.
• Alarms and GPS tracking systems cut prices – Owning a car with anti-theft technology or alarm system can save you a little every year. Systems that thwart thieves like LoJack tracking devices, vehicle tamper alarm systems or GM’s OnStar system all help stop car theft and help bring rates down.

When comparison shopping, comparing a large number of companies will increase your chances of finding a lower rate than you’re paying now. Some regional insurers cannot provide rate quotes online, so you also need to get prices from them as well.

The providers in the list below can provide free rate quotes in Chicago, IL. If the list has multiple companies, we suggest you click on several of them to find the most affordable auto insurance rates.

Cost estimates assume married male driver age 50, no speeding tickets, no at-fault accidents, $250 deductibles, and Illinois minimum liability limits. Discounts applied include multi-vehicle, homeowner, safe-driver, multi-policy, and claim-free. Prices do not factor in specific zip code location which can affect premiums greatly.

Comparison of auto insurance rates by age and gender in Chicago

The example below shows the difference between auto insurance rates for male and female drivers in Chicago. The rates are based on a clean driving record, no at-fault accidents, full coverage, $500 deductibles, drivers are not married, and no other discounts are factored in on a Ford Focus SE.

Ford Focus rates are for example purposes only. To get rate quotes for your specific vehicle, click here.

An analysis of deductible level

When buying auto insurance, a common question is the level to set your comp and collision deductibles. The comparisons below show the rate differences when you choose different deductibles. The first set of rates uses a $250 deductible for comprehensive and collision coverage and the second set of prices uses a $500 deductible.

GMC Acadia rates are for example purposes only. To get rates for your specific vehicle, click here.

Data based on married male driver age 30, no speeding tickets, no at-fault accidents, and Illinois minimum liability limits. Discounts applied include claim-free, multi-vehicle, homeowner, multi-policy, and safe-driver. Premium amounts do not factor in vehicle garaging location which can raise or lower prices substantially.

Based on the above data, using a $250 deductible costs roughly $11 more each month or $132 for a full year than quoting the higher $500 deductible. Because you would be required to pay $250 more if you turn in a claim with a $500 deductible as compared to a $250 deductible, if you normally go at least 23 months between claim filings, you would save more money if you elect the higher deductible.

Auto insurance deductibles

The chart below shows how different deductible levels and can increase or decrease Chevrolet Tahoe premium costs for different insured age categories. The rates are based on a single male driver, full physical damage coverage, and no policy discounts are applied.

Chevrolet Tahoe rates are for example purposes only. To get rates for your specific vehicle, click here.

Do drivers who switch really save $449 a year?

Progressive, GEICO, Allstate and State Farm seem to constantly run ads on TV and radio. All the companies make an identical promise that drivers can save some big amount if you just switch to their company. How is it possible that every company can make the same claim? You have to listen carefully.

All the different companies offer their best rates for the driver that will add to their bottom line. A good example of this type of insured might be between 30 and 50, owns a home, and the vehicle is rated for pleasure use. A driver that matches those criteria will probably get the lowest auto insurance rates and will also save a lot of money.

Insureds who cannot meet these stringent criteria will be charged higher premiums which results in the customer buying from someone else. The ads say “people who switch” not “everyone that quotes” can get the lowest rates when switching. This is how insurance companies can confidently claim big savings.

Different companies use different criteria so it’s extremely important to do a price quote comparison at every renewal. Because you never know the company that will provide the lowest car insurance in Chicago.

Buying the right vehicle insurance in Illinois is an important decision

Despite the fact that car insurance is not cheap in Chicago, insurance is a good idea for several reasons.

• Most states have minimum mandated liability insurance limits which means it is punishable by state law to not carry a minimum amount of liability in order to get the vehicle licensed. In Illinois these limits are 20/40/15 which means you must have $20,000 of bodily injury coverage per person, $40,000 of bodily injury coverage per accident, and $15,000 of property damage coverage.
• If you took out a loan on your vehicle, it’s guaranteed your bank will stipulate that you buy insurance to ensure the loan is repaid in case of a total loss. If you cancel or allow the policy to lapse, the bank will be required to insure your vehicle at a much higher premium rate and make you pay for the expensive policy.
• Car insurance protects both your assets and your vehicle. It will also provide coverage for most medical and hospital costs for you, any passengers, and anyone injured in an accident. One of the most valuable coverages, liability insurance, also pays expenses related to your legal defense if you are named as a defendant in an auto accident. If your vehicle gets damaged, your policy will cover the damage repairs after a deductible is paid.

The benefits of carrying enough insurance outweigh the cost, especially when you need to use it. As of last year, the average driver in Illinois is wasting up to $810 a year so shop around each time the policy renews to be sure current rates are still competitive.

Auto insurance policy discounts

Companies offering auto insurance don’t always publicize their entire list of discounts very well, so we break down a few of the more common and the more hidden savings tricks you should be using when you buy Chicago car insurance online.

• Organization Discounts – Belonging to a professional or civic organization can get you a small discount on your policy.
• E-sign – A few companies will give a small break shop Chicago car insurance on the internet.
• Chicago Homeowners Discount – Simply owning a home may trigger a policy discount on auto insurance because owning a home requires a higher level of personal finance.
• Good Students Pay Less – Maintaining excellent grades could provide a savings of up to 20% or more. Many companies even apply the discount to college students up until you turn 25.
• Bundle and Save – If you can combine your home and auto policy with the same company you may save over 10 percent off each policy depending on the company.
• Seat Belts Save more than Lives – Forcing all vehicle occupants to wear their seat belts could save 15% off the medical payments premium.
• Telematics Devices – Drivers that enable data collection to track where and when they drive remotely such as In-Drive from State Farm or Allstate’s Drivewise system might get better premium rates if their driving habits are good.
• Accident-Free Discounts – Claim-free drivers are rewarded with significantly better rates on Chicago car insurance quote when compared with policyholders that have many claims.
• No Charge for an Accident – This one isn’t a discount, but companies like Allstate, Progressive, and GEICO will allow you to have one accident before hitting you with a surcharge as long as you don’t have any claims for a set time period.

As a sidenote, some of the credits will not apply to the whole policy. Most only reduce the cost of specific coverages such as medical payments or collision. Even though it may seem like you can get free auto insurance, auto insurance companies aren’t that generous. Any amount of discount should help lower your policy premium.

A few of the larger companies and a selection of discounts are outlined below.

• Progressive may offer discounts for online quote discount, multi-policy, continuous coverage, homeowner, good student, and multi-vehicle.
• MetLife offers discounts including multi-policy, claim-free, good student, good driver, defensive driver, and accident-free.
• Mercury Insurance may include discounts for professional/association, accident-free, good student, low natural disaster claims, and type of vehicle.
• Nationwide offers premium reductions for easy pay, family plan, accident-free, Farm Bureau membership, business or organization, and defensive driving.
• GEICO offers discounts for good student, seat belt use, defensive driver, military active duty, and membership and employees.
• AAA policyholders can earn discounts including good student, multi-policy, AAA membership discount, pay-in-full, and good driver.

It’s a good idea to ask each insurance company to apply every possible discount. All car insurance discounts may not apply in Chicago. To find insurers who offer auto insurance discounts in Chicago, click here to view.

When should I get advice from a local insurance agent?

Many drivers still like to sit down with an agent and doing that can be a smart decision A good thing about comparing insurance online is that you can find cheap insurance quotes and also buy local. Putting coverage with local insurance agents is important particularly in Chicago.

By using this short form, your insurance coverage information is submitted to agents in your area that can give you free Chicago car insurance quotes for your business. It’s much easier because you don’t need to find an agent as quotes are delivered to you directly. You can get cheaper insurance rates AND a local agent. If you need to quote rates from a specific company, you can always find their quoting web page and fill out the quote form the provide.

Exclusive agents vs. Independent agents

If you’re trying to find a good Chicago insurance agent, there are a couple of different types of agents and how they can write your policy. Agents in Chicago may be either independent or exclusive depending on the company they work for.

Independent Insurance Agents

Independent agents do not sell for just one brand so they can write business with any number of different companies depending on which coverage is best. To move your coverage to a new company, the agent simply finds a different carrier and you can keep the same agent.

When comparing rate quotes, you should always get insurance quotes from multiple independent agents so that you have a good selection of quotes to compare. They also have the ability to place coverage with smaller regional carriers that may have much lower rates than larger companies.

Shown below is a list of independent agents in Chicago that can possibly get you cheap rate quotes.

• Lakeview Insurance Agency, Ltd.
  3438 N Southport Ave – Chicago, IL 60657 – (773) 871-8000 – View Map
• American Auto Insurance
  3201 N Harlem Ave #1 – Chicago, IL 60634 – (773) 286-3500 – View Map
• Active Insurance Agency – Auto Insurance
  1034 N Ashland Ave – Chicago, IL 60622 – (773) 286-3473 – View Map

View more Chicago agents

Exclusive Insurance Agencies

These agents write business for a single company like State Farm, Allstate, and Farm Bureau. They generally cannot compare rates from other companies so you might not find the best rates. They are very knowledgeable on sales techniques which helps overcome the inability to quote other rates. Consumers frequently use the same exclusive agent primarily because of loyalty to the company rather than having low rates.

The following is a short list of exclusive insurance agencies in Chicago willing to provide comparison quotes.

• Roni Siegel – State Farm Insurance Agent
  860 N Clark St – Chicago, IL 60610 – (312) 751-0500 – View Map
• Tamika Echols – State Farm Insurance Agent
  1611 N Clybourn Ave – Chicago, IL 60614 – (312) 944-9700 – View Map
• Bill Dillard – State Farm Insurance Agent
  516 W Diversey Pkwy – Chicago, IL 60614 – (773) 549-2605 – View Map

View more Chicago agents

Finding a good auto insurance agent requires more thought than just the premium amount. A good agent in Chicago will have answers to these questions.

• Are they able to influence company decisions when a claim is filed?
• Is the agency involved in supporting local community causes?
• Does the company allow you to choose your own collision repair facility?
• Are they properly licensed to sell insurance in Illinois?
• Is vehicle damage repaired with OEM or aftermarket parts?

Special considerations

When selecting adequate coverage for your vehicles, there really isn’t a “perfect” insurance plan. Your situation is unique.

For example, these questions could help you determine if your situation would benefit from professional advice.

• Should I rate my vehicle as pleasure use or commute?
• Is pleasure use cheaper than using my vehicle to commute?
• How much coverage applies to personal belongings?
• Why do I only qualify for high-risk insurance?
• Do I need special endorsements for business use of my vehicle?
• Should I file a claim if it’s only slightly more than my deductible?
• Do I need higher collision deductibles?
• Should I drop comprehensive coverage on older vehicles?
• What is UM/UIM insurance?

If it’s difficult to answer those questions but you know they apply to you, then you may want to think about talking to a licensed insurance agent. If you don’t have a local agent, take a second and complete this form.

Car insurance claim statistics

Are you driving a high-claim vehicle? The statistics below show the best and worst vehicles for the probability of having large claims organized by coverage.

Frequent quotes can save

Insureds leave their current company for a number of reasons such as denial of a claim, extreme rates for teen drivers, high rates after DUI convictions or even not issuing a premium refund. It doesn’t matter what your reason, switching companies can be less work than you think.

As you prepare to switch companies, don’t be tempted to reduce coverage to reduce premium. In many cases, an accident victim reduced collision coverage only to regret that they should have had better coverage. Your aim should be to get the best coverage possible at the best price, but do not sacrifice coverage to save money.

We just presented a lot of information how to compare insurance car insurance rates in Chicago. The key thing to remember is the more rate comparisons you have, the higher the chance of saving money. You may even discover the biggest savings come from a smaller regional carrier.

Additional insurance information can be found at these links:

• Insurance losses by make and model (Insurance Institute for Highway Safety)
• Who Has Cheap Car Insurance Rates for 16 Year Olds in Chicago? (FAQ)
• Who Has Cheap Chicago Auto Insurance for Drivers with a Bad Driving Record? (FAQ)
• Who Has Cheap Chicago Auto Insurance Quotes for Handicapped Drivers? (FAQ)
• Who Has Cheap Chicago Car Insurance Quotes for Low Mileage Drivers? (FAQ)
• Who Has the Cheapest Car Insurance Quotes for Welfare Recipients in Chicago? (FAQ)
• How Much are Chicago Auto Insurance Rates for Nurses? (FAQ)
• Get the Right Protection (InsureUonline.org)
• Teen Driver Licensing Information (iihs.org)
• Older Drivers FAQ (iihs.org)