đź“Š Illinois: Better Than Average, But Not for Everyone
Illinois ranks 35th in car insurance costs—cheaper than most states. But this average hides massive geographic disparity: Chicago drivers pay $2,800+/year while Springfield drivers pay $1,400/year. State Farm, headquartered in Bloomington, dominates with 29% market share.
Illinois Auto Insurance: Quick Facts (2025)
| Category | Details |
|---|---|
| Minimum Liability | 25/50/20 |
| Uninsured Motorist (Required) | 25/50 |
| Average Full Coverage | $1,901/year ($158/month) |
| Average Minimum Only | $667/year ($56/month) |
| National Rank | 35th Most Expensive |
| Fault System | At-Fault (Tort) |
| Credit Scoring | âś… Allowed (under debate) |
Chicago vs. Downstate: The 60% Gap
| City | Avg Full Coverage | vs. State Avg |
|---|---|---|
| Chicago (South Side) | $3,200/year | +68% |
| Chicago (Average) | $2,800/year | +47% |
| Rockford | $2,100/year | +10% |
| Peoria | $1,600/year | -16% |
| Springfield | $1,400/year | -26% |
| Champaign | $1,350/year | -29% |
The Credit Score Debate in Illinois
🔥 Illinois Secretary of State's Campaign
In 2025, Illinois Secretary of State Alexi Giannoulias launched a campaign to eliminate ZIP code, age, and credit score factors from auto insurance rating, calling them "unfair and discriminatory." The proposal is controversial—industry groups argue it would raise rates for good drivers while lowering them for risky drivers.
Current Illinois Law on Credit Scores
Credit-based insurance scores remain legal in Illinois. Data shows drivers with poor credit pay 80-100% more than those with excellent credit—even with identical driving records.
If the proposed reforms pass, Illinois would join California, Massachusetts, and Hawaii in banning credit scores for insurance. Watch this space in 2025-2026.
Illinois's Largest Auto Insurers (2025)
| Rank | Company | Market Share | Notes |
|---|---|---|---|
| 1 | State Farm | ~29.2% | HQ in Bloomington, IL |
| 2 | Allstate | ~10.7% | HQ in Northbrook, IL |
| 3 | GEICO | ~9% | Growing share |
| 4 | Progressive | ~8% | Telematics focus |
| 5 | Country Financial | ~5% | IL regional carrier |
Fun fact: Both State Farm (#1 national) and Allstate (#4 national) are headquartered in Illinois. The state has a highly competitive market.
Illinois Car Insurance: FAQs
Does Illinois require uninsured motorist coverage?
Yes! Illinois is one of the few states that mandates UM coverage. You must carry at least 25/50 uninsured motorist limits. Given Illinois's ~15% uninsured driver rate, this is valuable protection.
Why is Chicago car insurance so expensive?
Chicago has high traffic density, elevated vehicle theft rates (especially Kia/Hyundai), more accidents per capita, and higher medical costs. Some South Side neighborhoods see rates 70%+ above the state average.
Will Illinois ban credit scores for insurance?
It's under serious debate. The Secretary of State is campaigning for it, but the insurance industry is pushing back hard. If it passes, expect significant rate restructuring—some drivers would see increases, others decreases.
The Bottom Line on Illinois Car Insurance
Illinois offers better-than-average rates overall, but where you live matters enormously. Chicago drivers face rates 50-70% higher than downstate residents. The credit score debate could reshape the market in 2025-2026.
Smart moves: Shop State Farm and Allstate (both IL-based). If you have good credit, lock in rates before potential reforms. Chicago residents should consider telematics programs to prove safe driving.