The words "affordable" and "auto insurance" probably shouldn't be used in the same sentence, especially when you are searching for the cheapest coverage for drivers under 25. Because it's not cheap, let's go over some of the factors that have an impact on insurance rates, and figure out some ideas to reduce the cost of the next policy you buy.
Finding good, low-priced car insurance is not always easy, and determining which company has the lowest-priced insurance rates for drivers under 25 may require even more shopping around. Each auto insurer has their own process for setting prices, so we'll take a look at the insurance companies with the most affordable rates in Chicago.
It's important to understand that Chicago insurance rates are calculated based on many things that may substantially change the price you pay. Price variation is why drivers need to perform an extensive rate comparison when trying to find the lowest auto insurance rates for drivers under 25. Car insurance prices are calculated by many risk factors and change substantially, so the best option the last time you shopped around may now be an over-priced policy.
Find the Cheapest Auto Insurance for Young Drivers
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | The Hartford | $753 |
| 2 | Rockford Mutual | $838 |
| 3 | Titan | $860 |
| 4 | Cincinnati Insurance | $897 |
| 5 | Erie | $914 |
| 6 | SECURA | $965 |
| 7 | State Farm | $972 |
| 8 | Utica National | $975 |
| 9 | USAA | $979 |
| 10 | Travelers | $981 |
| 11 | Auto-Owners | $1,033 |
| 12 | Safeco | $1,063 |
| 13 | GEICO | $1,107 |
| 14 | Amica | $1,109 |
| 15 | Farmers | $1,135 |
| 16 | California Casualty | $1,197 |
| 17 | Esurance | $1,197 |
| 18 | Progressive | $1,206 |
| 19 | MetLife | $1,207 |
| 20 | State Auto | $1,236 |
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The Hartford normally has some of the best car insurance rates in Chicago at around $753 annually. This is $596 less than the average policy premium paid by Illinois drivers of $1,349. Rockford Mutual, Titan, Cincinnati Insurance, and Erie also are some of the best Chicago, IL insurance companies.
In the rate table above, if you have coverage with Rockford Mutual and switched to The Hartford, you may realize annual savings of around $85. Customers with Titan could save as much as $107 a year, and Cincinnati Insurance policyholders might see rate reductions of $144 a year.
To find the cheapest rates for your vehicle, click here to start your free quote or quote prices from the following companies.
It's important to note that these policy prices are averaged across all types of drivers and the different vehicles they drive and do not take into consideration an exact location for drivers under 25. So the insurer that has the cheapest price for you may not even be in the list above. That's why you need to get rate quotes from many companies using your own driver data and vehicle information.
The vehicle requiring insurance is a large factor when shopping around for the lowest-priced car insurance for drivers under 25. Vehicles with more horsepower, a lack of advanced safety features, or high incidents of liability claims will cost substantially more to insure than more economical and safe models. The next list ranks car insurance prices for a handful of the most budget-friendly vehicles to insure.
| Insured Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLS 4WD | $4,412 |
| Hyundai Elantra GLS Touring Station Wagon | $4,422 |
| Honda CR-V EX-L 2WD | $4,479 |
| Toyota Prius | $4,826 |
| Ford Explorer Eddie Bauer 2WD | $4,952 |
| Chevrolet Impala LS | $5,167 |
| Toyota Tacoma 2WD | $5,172 |
| Toyota RAV4 Limited 4WD | $5,234 |
| Chevrolet Equinox LS AWD | $5,241 |
| Chevrolet Silverado LS Regular Cab 2WD | $5,289 |
| Chevrolet Malibu LT | $5,299 |
| Dodge Grand Caravan Crew | $5,309 |
| Ford F-150 FX4 Super Cab 4WD | $5,299 |
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Data based on single female driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Illinois minimum liability limits. Discounts applied include claim-free, and safe-driver. Estimates do not factor in specific location which can raise or lower coverage prices significantly.
Looking at the data, you can presume that models like the Ford Escape, Hyundai Elantra, Honda CR-V, and Toyota Prius are most likely to be some of the most budget-friendly vehicles to insure for drivers age 25 and younger. Auto insurance rates will trend higher just due to the fact that there is a higher risk for drivers under 25, but in general those particular models will probably have the lowest insurance rates compared to other vehicles.
The example below illustrates how your choice of deductibles can affect premium costs when getting quotes for cheap insurance for drivers under 25. The data is based on a married male driver, comp and collision included, and no discounts are factored in.
A 50-year-old driver could lower their car insurance rates by $248 a year by switching the physical damage coverage from a $100 deductible to a $500 deductible, or save $372 by selecting a $1,000 deductible. Youthful drivers, such as the Age 20 example, could save up to $826 or more by using higher deductibles when buying full coverage. When increasing deductibles, it is essential to have additional funds squirreled away to pay the extra out-of-pocket expense, which is the main disadvantage of using high deductibles.
How violations and accidents impact rates
One of the best ways to snag the cheapest insurance premiums in Illinois for drivers age 25 and younger is to be a good driver and avoid at-fault accidents and violations. The example below demonstrates how speeding tickets and accident claims can affect insurance costs for different age categories. The rate quotes are based on a single female driver, full coverage, $500 deductibles, and no policy discounts are applied.
In the previous example, the average cost of a car insurance policy in Chicago per year with no violations or accidents is $1,568. Get written up for two speeding tickets and the average cost jumps to $2,097, an increase of $529 each year. Now get two accidents along with the two speeding tickets and the 12-month cost of insurance for drivers under 25 increases to an average of $4,176. That's an increase of $2,608, or $217 per month, just for not being a responsible driver!
The importance of shopping around
Chicago insurance rates are impacted by many things which can substantially change your annual premium. Simply getting older, buying higher coverage limits, or having an accident can cause premium changes that can now make some companies cheaper than before. In addition, companies modify rates as often as every quarter to adjust for gains or losses. Heavy losses can cause increased rates, while a profitable period may cause cheaper Chicago car insurance rates.
To illustrate this point, the bar chart below demonstrates which company has the cheapest car insurance in Chicago, IL for a 40-year-old male driver with a good driving record, no prior claims, and a good credit rating. When comparing rates based on his personal risk profile, The Hartford quotes the best car insurance rates in Chicago at $1,198 per year. This is $151 less than the average rate paid by Illinois drivers of $1,349. Rockford Mutual, Titan, Erie, and Cincinnati Insurance are also included in the top five cheapest Chicago, IL auto insurance companies.
The next chart shows rates after we give the driver in the first chart an accident claim, bad credit, and a blemish on his driving record. Due to the fact that every insurance company has a proprietary formula to set their prices, analyzing rate quotes most likely will result in a slightly different list of the cheapest companies as shown below.
USAA now has the best car insurance rate in Chicago, IL with SECURA, State Farm, Travelers, and Auto-Owners now rounding out the top five. This example shows why consumers need to shop around when trying to get the most affordable car insurance rates for drivers under 25.
Car insurance prices are determined by many factors and can change substantially, so the best company three years ago may now be an over-priced policy.
Tips for finding budget-friendly auto insurance for drivers under 25
It is possible to find better rates, and here are many thrifty solutions that can help Illinois drivers quote low-cost car insurance.
- Safer vehicles cost less to insure
- On older vehicles, drop full coverage
- Be a cautious driver
- Claim-free drivers earn discounts
- Prevent price hikes by avoiding at-fault accidents
- Bundle home and auto and earn a discount
- Ensure you have the best deal by shopping around regularly
The last suggestion is extraordinarily crucial, as was affirmed in the prior information. Car insurance prices in Chicago fluctuate constantly, so don't be unwilling to buy a policy from a new company if you can find a cheaper rate. Being loyal to a particular company is commendable, but it isn't a good idea if that inflexibility results in costing you lots of hard earned cash every month. It only takes a couple minutes to compare prices and find cheaper auto insurance for drivers under 25.
If you have questions and prefer to have some professional guidance when shopping around for cheaper insurance for drivers age 25 and younger, the agents shown below are willing to aid you in deciding which coverage fits your budget. To locate a Chicago car insurance agency nearest to you, click the button following the list.
- Lincoln Auto Insurance
855 W Washington Blvd - Chicago, IL 60607 - (312) 666-8800 - Public Insurance Agency
3656 N Cicero Ave - Chicago, IL 60641 - (773) 725-9333 - Eagle Insurance Agency
3517 N Spaulding Ave - Chicago, IL 60618 - (773) 463-7576