Why is Illinois car insurance so expensive?

Car insurance in Illinois is actually not very expensive compared to the national average, thanks to safe drivers with fewer than average accidents and affordable auto repair options across the state. In Illinois, you can expect to pay approximately $3,948 per year for full coverage car insurance or $1,351 per year for minimum coverage. Car insurance in Illinois is less expensive than the national average, which is around $4,211 per year for full coverage and about $1,407 per year for minimum coverage.    

The cost of car insurance is steadily increasing, too, both in Illinois and nationwide. As the cost of providing insurance goes up, the premiums insurers charge also rise. All insured drivers share the increasing cost of insurance. That is why your rates tend to go up every time your policy is renewed, regardless of whether any individual factors—like your driving record or location—have changed.

There are several unique reasons why car insurance goes up every year in Illinois, too, even if your details remain the same.

Top Reasons Car Insurance Is Expensive in Illinois    

• People in Illinois are driving more. As a result, the number of accidents, claims, and payouts is rising, too. For example, there were approximately 1087 fatal crashes in 2020 in Illinois, versus 914 fatal crashes in 2015.
• Auto repairs are getting more expensive. Vehicles today cost more to repair due to the added technology and features. For example, a National Association of Insurance Commissioners study found that the average cost of vehicle repairs was around 8% higher in 2018 than it was in 2014. 
• People in Illinois drive uninsured. As the cost of car insurance continues to rise, more drivers take the risk of driving without car insurance. In 2019, 12% of drivers lacked even minimum liability insurance in Illinois. The cost of uninsured drivers is passed on to consumers through higher premiums. 
• Healthcare in Illinois is getting more expensive. Car insurance companies are hit hardest when paying out claims involving medical bills, and it’s not getting any cheaper. Healthcare spending increases by an average of 5.4% every year in Illinois. 
• Illinois is experiencing more severe weather. In Illinois, weather events like severe storms, serious winter weather, and droughts are becoming increasingly common. These weather events cause insurers to pay out a higher number of claims, which tend to be more expensive and less predictable. As a result, they have to raise rates to keep pace.  

However, there could be other issues elevating your rates.

If your driving record is clean and your rates are still high, your car insurance might be expensive because of your: 

Age. Drivers under 25 and older than 65 pay more for auto coverage because they are statistically more likely to be involved in serious and fatal accidents. In Illinois, 16-year-old drivers pay an average of $3,145 per year, 25-year-old drivers pay an average of $750 per year, and people over 65 pay an average of $611 per year.

Location and driving patterns. Population-dense cities have higher premiums than rural areas because city living usually means more accidents, more property crime, and more frequent claims. In Illinois, the most expensive locations for insurance are Cicero, Skokie, and Chicago. You can also expect rates to change based on your driving patterns—long commutes or regular driving in high-risk areas can cost you.  

Financial responsibility. In Illinois, drivers with no credit pay 64% more on their premiums than drivers with excellent credit. You can also demonstrate financial responsibility by maintaining minimum car insurance with no gaps in coverage. Letting your coverage lapse could result in a higher rate when you get your next policy.

Claims history. Numerous recent claims can drive up your premiums. That's one reason why it sometimes makes sense to pay out of pocket rather than file a claim, especially if a claim won’t get you much more than your deductible.

How to Get Cheaper Car Insurance in Illinois

Multiple factors affect the cost of car insurance. Some things you can’t control, but you do have a say in most of the contributing factors. Driving safely, obeying traffic laws, and keeping a clean driving record are the best ways to keep your insurance costs down.    

Other than that, the best way to lower your car insurance costs is to compare rates from at least three insurance companies. Ideally, you should check your rates every 6-12 months, when you renew your policy. But at a minimum, be sure to check your record and shop for rates every three to five years, since you may be able to get a lower rate if a traffic violation falls off your record.

In Illinois, the most expensive policies cost roughly $2,978 per year, and the least expensive coverage costs around $767 per year, when all driver profile information is the same. That means you could save as much as $2,211 per year simply by shopping around. Be sure to confirm you’re getting all the discounts you’re eligible for, too.