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See Illinois car insurance costs for new and used cars. Also find what coverage you need, how your car’s value and credit score affect your rate, and where you can cut costs without leaving yourself exposed.

Illinois drivers pay about 10-22% less for car insurance than the national average. Full coverage runs roughly $1,200-$1,650 per year statewide, while minimum liability averages $450-$620 annually.

But those averages hide a stark divide. Chicago drivers routinely pay $2,000+ for full coverage — sometimes $1,100/month in certain South Side zip codes — while downstate residents in Bloomington or Peoria pay half that or less. Your credit score, your specific neighborhood, and your car’s theft risk matter as much as your driving record.

Updated: June 3, 2026

Curious about car financing? See real Illinois car loan rates shared by our community.

Illinois’ 25/50/20 Rule Plus Mandatory Uninsured Coverage

Illinois requires liability insurance plus uninsured motorist bodily injury coverage to register a vehicle. Here’s what each covers:

Bodily Injury Liability (25/50):

• $25,000 for injuries to one person in an accident you cause.
• $50,000 total for injuries to all people in an accident you cause.

Property Damage Liability:

• $20,000 for damage you cause to other vehicles, fences, buildings, or property.

Uninsured Motorist Bodily Injury (25/50):

• $25,000 per person and $50,000 per accident for injuries caused by an uninsured driver.
• This coverage is mandatory in Illinois — you cannot waive it.
• It also covers hit-and-run accidents where the at-fault driver cannot be identified.

Illinois is an at-fault state. If you cause an accident, you’re responsible for the other party’s injuries and property damage. If your coverage limits aren’t enough, you pay the difference out of pocket — or face a lawsuit.

MFP Tip: Illinois uses an Electronic Insurance Verification System that checks twice yearly whether your vehicle has active insurance. If flagged without coverage, you’ll receive a suspension letter within 30 days. Driving uninsured means a minimum $500 fine for the first offense and $1,000 for repeat violations, plus license plate suspension and reinstatement fees.

Illinois New Car Insurance Costs

Your new car monthly premium depends on three main factors: the value of your car, how much coverage you carry, and your credit score. Your zip code also plays a major role — Chicago drivers pay roughly 2-3x what downstate drivers pay for identical coverage.

Car Value	Coverage	750+ (Excellent)	700–749 (Good)	650–699 (Fair)	600–649 (Below Fair)
Under $30K	Full	$176	$213	$233	$365
	Standard	$127	$154	$169	$265
	Liability only	$84	$102	$112	$175
$30K–$60K	Full	$207	$251	$276	$431
	Standard	$151	$183	$201	$314
	Liability only	$92	$112	$122	$191
Over $60K	Full	$256	$310	$340	$531
	Standard	$184	$223	$244	$382
	Liability only	$100	$121	$133	$207

Illinois Used Car Insurance Costs

Your used car monthly premium depends on three main factors: the value of your car, how much coverage you carry, and your credit score. Your zip code also plays a major role — Chicago drivers pay roughly 2-3x what downstate drivers pay for identical coverage.

Car Value	Coverage	750+ (Excellent)	700–749 (Good)	650–699 (Fair)	600–649 (Below Fair)
Under $15K	Full	$102	$124	$136	$212
	Standard	$86	$104	$114	$178
	Liability only	$58	$71	$77	$121
$15K–$25K	Full	$123	$149	$163	$255
	Standard	$102	$124	$136	$212
	Liability only	$68	$82	$90	$140
$25K–$40K	Full	$139	$168	$184	$288
	Standard	$116	$141	$154	$241
	Liability only	$73	$88	$97	$151
Over $40K	Full	$159	$193	$212	$331
	Standard	$132	$160	$176	$275
	Liability only	$81	$98	$107	$167

What Each Coverage Level Means

Full Coverage: Includes collision, comprehensive, and liability coverage. Typical limits are 100/300/100. This pays to repair or replace your car after accidents, theft, vandalism, hail, tornadoes, or floods. Required if you finance or lease.

Standard Coverage: Same protections as full coverage but with lower limits and higher deductibles. A good middle ground when your car has lost some value but still needs protection.

Liability Only: Meets Illinois’ legal minimum (25/50/20 plus UM bodily injury). Covers damage you cause to others but nothing for your own vehicle. Best for older cars where the premium would exceed the car’s value.

Your Credit Score Matters More Than Your Driving Record in Illinois

Illinois allows insurers to use credit history when setting rates. The impact is enormous — and controversial enough that the Illinois Secretary of State has launched a public campaign calling it “unfair and discriminatory.”

The Consumer Federation of America found that Illinois drivers with perfect driving records but poor credit (300-579) pay an average of $915 per year for state-minimum coverage. That’s 116% more than drivers with excellent credit (800-850) who pay just $424 for the same coverage.

Here’s the troubling comparison: a driver with excellent credit and a DUI conviction pays $862 less annually than a driver with poor credit and a clean driving record.

How Credit Affects Your Rate:

• Excellent (800+): Best available rates.
• Good (670-799): Slightly above base rates, typically 10-25% more.
• Fair (580-669): Moderate surcharge, often 40-60% above excellent credit rates.
• Poor (below 580): Can more than double your premium compared to excellent credit.

MFP Tip: If you have poor credit, work on improving your score before shopping for a new policy. Even a small improvement can drop you into a better pricing category. Pay down credit card balances and correct any errors on your credit report.

New Car vs. Used Car: How to Choose the Right Coverage

Buying a New Car

If you’re financing or leasing, your lender will require full coverage including collision and comprehensive. You don’t have a choice on this — it protects their investment.

Beyond lender requirements, gap insurance is worth considering. New cars depreciate 20-30% in the first year. If your car is totaled, your insurance pays the actual cash value (what it’s worth today), not what you owe on the loan. Gap insurance covers the difference.

Illinois ranks 4th nationally for vehicle theft by total volume. Hyundai and Kia models are targeted at very high rates due to a viral theft method. If you drive one of these vehicles, comprehensive coverage is not optional.

MFP Tip: Gap insurance costs $20-$50 per year when added to your auto policy — much cheaper than buying it through a dealer, who may charge $500-$700 as a one-time fee.

Buying a Used Car

With a used car you own outright, you have more flexibility. The key question: does it make sense to pay for collision and comprehensive coverage?

The 10% Rule: Add up your annual collision and comprehensive premiums. If that total exceeds 10% of your car’s current market value, you might save money by dropping those coverages and setting aside money for repairs or a replacement.

Example: Your 2017 Honda Accord is worth $15,000. If collision and comprehensive cost $1,200/year (8%), keeping those coverages makes sense. If your 2011 Toyota Camry is worth $7,000 and collision plus comprehensive runs $900/year (13%), you might be better off banking the premium savings.

Illinois Exception: Even on an older car, think twice before dropping comprehensive. Illinois ranks 6th nationally for tornado risk, had more hail damage claims than any state except Texas in 2024, and is 4th in the nation for vehicle theft. Comprehensive covers all three.

$20,000 for Property Damage Won’t Fix Most Modern Cars

Illinois’ minimum limits were set years ago and haven’t kept pace with today’s costs. Here’s where they fall short:

When You Damage Someone’s Property

The $20,000 property damage minimum sounds reasonable until you look at car prices. The average new car costs over $48,000. A moderate collision with a new pickup truck or SUV can easily exceed $20,000 in repairs.

If you rear-end a Tesla Model Y and cause $35,000 in damage, your insurance pays $20,000. You owe the remaining $15,000 out of pocket.

If You Injure Someone

The $25,000 per-person bodily injury limit disappears fast when someone needs surgery or hospitalization. A broken leg requiring surgery can easily hit $50,000-$100,000. Spinal injuries or traumatic brain injuries run into hundreds of thousands.

If your $25,000 limit doesn’t cover the injured person’s damages, they can sue you personally for the difference. Illinois allows wage garnishment and asset seizure to satisfy judgments.

When an Uninsured Driver Hits You

About 13-16% of Illinois drivers don’t have insurance — roughly one in seven. That’s at or above the national average of 14%.

Your mandatory UM bodily injury coverage protects you from medical costs if an uninsured driver hits you. But it doesn’t cover property damage unless you’ve added optional uninsured motorist property damage (UMPD) coverage.

Many insured Illinois drivers carry only the minimums. If someone with 25/50 coverage hits you and causes $100,000 in medical bills, you’re stuck with the $75,000 difference unless you have underinsured motorist coverage.

MFP Tip: Raising your liability limits from 25/50/20 to 100/300/100 typically costs only $100-$200 more per year. That small increase protects your savings, your home, and your future wages from a lawsuit.

What Factors Illinois Rates

Illinois is an At-Fault State with Modified Comparative Negligence

Illinois follows the 51% bar rule. If you’re less than 51% responsible for an accident, you can recover damages — but your compensation is reduced by your percentage of fault. If you’re 51% or more at fault, you recover nothing from the other driver.

Example: You’re found 30% at fault for an accident with $100,000 in damages. You can recover $70,000. But if you’re found 51% at fault, you receive nothing, regardless of your injuries.

Severe Weather: Tornadoes and Hail

Illinois ranks 6th nationally for tornado risk, averaging 54 tornadoes per year. The July 2024 derecho spawned 32 tornadoes — the most prolific tornado event in the National Weather Service Chicago forecast area’s recorded history.

Hail is an even bigger cost driver. State Farm reported paying more hail damage claims in Illinois than any state except Texas in 2024. Tornado and hail damage to your vehicle is covered under comprehensive insurance, not collision.

Vehicle Theft: 4th Highest in the Nation

Illinois ranks 4th nationally for total vehicle thefts by volume, with over 34,000 vehicles stolen in 2024. The Chicago-Naperville-Elgin metro area ranked 3rd nationally for theft volume.

Hyundai and Kia models are targeted at very high rates due to a viral theft method. The Hyundai Elantra and Sonata top the most-stolen list in Illinois. If you drive one of these vehicles, expect higher comprehensive premiums.

No Rate Regulation: Illinois is Unique

Illinois is one of only two states without a review process for insurance rate increases. Insurers can raise premiums whenever they want, by whatever amount they want, with no regulatory approval required.

The result: Illinois auto insurance rates increased by more than $1.25 billion in 2023 alone. Rates rose 28% statewide by 2024, exceeding the 26% national average increase. Chicago rates spiked 34%.

The Chicago vs. Downstate Divide

Location matters more in Illinois than in most states. A ProPublica and Consumer Reports analysis found that 33 of 34 Illinois insurers charged rates at least 10% higher for safe drivers in predominantly minority zip codes compared to other areas.

One military service member reported being quoted $1,100/month for insurance at his South Side Chicago address — but only $300/month for identical coverage in Naperville, a suburb. Downstate cities like Peoria, Bloomington, and Springfield see much lower rates due to less traffic and fewer claims.

How to Lower Your Illinois Car Insurance Costs

Shop aggressively and compare at least five quotes. Illinois’ lack of rate regulation means prices vary wildly between insurers. GEICO averages $69/month in some analyses, while Erie Insurance averages $104/month for similar coverage — a $420 annual difference.

Bundle your policies. Combining auto and renters or homeowners insurance with the same company often saves 10-25%.

Improve your credit score. Since credit impacts Illinois rates more than your driving record, even small credit improvements can drop you into a better pricing category.

Try a safe-driver tracking program. Many insurers offer discounts of 10-30% if you let them monitor your driving habits through an app. Good scores for smooth braking, steady speeds, and limited nighttime driving translate to savings.

Raise your deductible. Increasing your deductible from $500 to $1,000 can cut your collision and comprehensive premiums by 15-25%. Just make sure you have that amount available in case of a claim.

Ask about all available discounts. Common discounts include: good student, low mileage, anti-theft devices, paying in full, paperless billing, defensive driving courses, multi-vehicle, and claims-free for multiple years.

MFP Tip: State Farm announced auto insurance rate decreases averaging 5.7% for Illinois customers starting July 2025, with some seeing reductions up to 15%. If you’re a State Farm customer, check whether your renewal reflects the decrease. If not, call and ask.

Buying a Car in Illinois? Here’s What to Do

Get Insurance Before You Drive

Illinois requires you to have insurance before you drive. If you’re buying from a dealer, you’ll need proof of insurance before taking possession. If you already have a policy, call your insurer to add the new vehicle before driving off.

If you don’t have a policy, arrange coverage first — most insurers can bind a policy over the phone or online in minutes.

Register Within 20 Days

You have 20 days after purchase to title and register a vehicle in Illinois. Bring:

• Proof of Illinois insurance.
• The signed title or dealer documentation.
• A valid ID.
• Payment for registration fees and taxes.

New residents have 30 days to register their vehicle and obtain an Illinois driver’s license.

Review Coverage Annually

Your car loses value every year. The full coverage that made sense for a new $35,000 car may not make sense when that car is worth $18,000 five years later.

Check your coverage at each renewal and adjust based on your car’s current value. With Illinois’ unregulated rate environment, shopping around every year or two is worth the effort.

End Note

Illinois gives drivers less regulatory protection than almost any other state. Without prior approval requirements, insurers can and do raise rates by double digits year after year. Your best defense is staying informed and shopping aggressively.

The state’s minimums leave you exposed. $20,000 in property damage coverage won’t fix most modern vehicles, and the bodily injury limits can be exhausted by a single serious injury.

Base your coverage decisions on your car’s actual value, your ability to absorb a loss, and the real costs of accidents — not just state minimums. Use the rate tables above to estimate what you’ll pay, then shop around. A few hours comparing quotes can save you hundreds per year without sacrificing the protection you need.