If you’re wondering how to lower your car insurance premiums in Illinois, this guide covers the top strategies for saving money. Car insurance costs are on the rise in Chicago and across Illinois, so it’s more important than ever to find discounts and smart ways to reduce your rate. Fortunately, there are several effective steps you can take right now, like comparing multiple quotes, maintaining a safe driving record, raising your deductible, bundling policies, and taking advantage of discounts. Each of these moves can help lower your premiums while keeping you properly covered.
For personalized help finding savings, call Insure on the Spot in Chicago at 773-202-5060 today to get started.
1. Compare Quotes from Multiple Illinois Insurers
Insurance rates vary widely between companies in Illinois. The price you pay with one insurer in Chicago could be very different from another for the same coverage. The only way to know you’re getting the best deal is to shop around and compare quotes. You might be surprised how much you can save just by checking prices with a few different insurers.
You should shop for new quotes at times like:
- When your policy is up for renewal (at least once a year).
- When you buy a new car or add a driver to your policy.
- If your driving record or credit score has recently improved.
By exploring options from both national and local providers, you could discover a much lower premium for the same coverage. Chicago has a competitive insurance market, so take advantage of it. Insure on the Spot offers free quotes and local expertise, making it easy for Illinois drivers to see how much they could save by switching to a better rate.
2. Maintain a Clean Driving Record on Chicago Roads
One of the biggest factors in your car insurance premium is your driving history. Maintaining a clean driving record – meaning no accidents or traffic tickets – will help keep your Illinois insurance rates low. Insurers reward safe drivers: in fact, a good driver discount can reduce premiums by anywhere from 10% to 30%. On the other hand, getting a single speeding ticket or causing an accident in Chicago’s busy traffic can make your rate jump for several years. City drivers already face higher average premiums due to heavier traffic and more claims, so avoiding any marks on your record is especially important in Chicago.
To protect your record, drive defensively on Chicago roads and obey all traffic laws (those speed cameras and red-light cameras in the city are no joke). Avoid distractions like texting while driving, and never drive under the influence. If you do receive a minor ticket in Illinois, see if you’re eligible for a defensive driving course to remove the violation from your record – this can prevent an insurance hike. The safer you drive, the fewer claims and violations you’ll have, and insurance companies reward accident-free drivers. In short, safe driving not only keeps you safer on the road, but it pays off in lower premiums.
3. Raise Your Deductible for Lower Premiums
Your deductible is the amount you pay out of pocket on a claim before insurance covers the rest. Choosing a higher deductible is a quick way to lower your monthly premium. If you can afford a bit more out-of-pocket in case of a claim, consider raising your deductible from, say, $250 to $500 or even $1,000. By doing so, you may cut the cost of your collision and comprehensive coverage by 15% to 30% or more. For example, increasing a low $250 deductible to $500 can lead to substantial savings, and going up to a $1,000 deductible might save you up to 40% on those coverage portions. Just make sure you have some emergency funds set aside to cover that higher deductible if you ever need to file a claim.
It’s also wise to adjust your coverage based on your needs. Illinois law requires drivers to carry at least 25/50/20 liability coverage ($25,000 per person for injury, $50,000 per accident, and $20,000 for property damage), but beyond those minimums, you have flexibility. If your vehicle is older and not worth much, consider dropping collision and comprehensive coverage to save money – especially if you own the car outright with no loan.
There’s no sense paying for full coverage on a 15-year-old car that’s only worth a couple of thousand dollars. By sticking to liability-only on an older vehicle, you can significantly lower your premium (just remember this means your insurer won’t pay for damage to your car if an accident happens). Review optional add-ons as well: things like roadside assistance or rental car reimbursement are convenient but not essential for everyone. Tailor your policy to your current situation, and you won’t pay for coverage you don’t truly need.
4. Bundle Your Insurance Policies for Discounts
Another smart way Illinois drivers can save is by bundling insurance policies. Insurance companies often give a discount when you have more than one policy with them. For example, if you own a home or condo in Illinois, try getting your homeowners and auto insurance from the same insurer – you could see a sizable multi-policy discount. Even if you rent an apartment in Chicago, many insurers offer bundling discounts for combining a renters insurance policy with your car insurance. Additionally, insuring multiple cars on the same auto policy (for families with two or more vehicles) typically qualifies you for a multi-car discount. Bundling not only saves you money (often anywhere from 5% to 20% off each policy’s premium), but it also simplifies your life with one bill and one insurance company for multiple needs.
Illinois drivers who bundle their auto and home insurance have been known to save an average of around 10-15% on premiums. That could be a few hundred dollars back in your pocket each year. Every insurer’s discount will vary – some might offer an even bigger percentage off – so be sure to ask about it. The key is to keep as much of your insurance as possible with one company. They want your business, and they’re willing to cut you a break on price for it. When getting quotes, ask what bundle or multi-line discounts are available. If you’re unsure how to juggle multiple policies, working with a local agency like Insure on the Spot (which understands Chicago customers) can help you coordinate the best bundling strategy for maximum savings.
5. Take Advantage of Discounts and Special Programs
Car insurance companies in Illinois offer many different discounts and programs that can lower your premium – but you have to know to ask for them. Never assume your insurer has applied all the discounts you qualify for automatically. Review your policy or talk to your agent about common discounts such as:
| Discount Type | Potential Premium Savings |
| Good driver (safe record) | 10% – 30% off your premium |
| Multi-policy (bundling) | 5% – 25% off (around 10–15% typical) |
| Multi-car (insuring 2+ cars) | 10% – 25% off |
| Anti-theft devices installed | ~5% off |
| Good student (for young drivers with good grades) | 5% – 15% off |
| Defensive driving course | 5% – 10% off |
| Low mileage / Usage-based insurance | Varies (save more if you drive much less than average) |
These are just some examples – there may be other discounts for military service, being a senior driver, being claim-free for a certain time, going paperless, etc. As you can see, each discount might shave only a few percent, but stacking multiple discounts can add up to big savings. For instance, a Chicago driver might combine a good driver discount with a multi-car discount and a defensive driving course credit, altogether reducing the premium by a significant margin. According to the Illinois Department of Insurance, it’s wise to ask your insurer for a list of all discounts they offer, so you don’t miss any that you’re eligible for.
In addition to discounts, consider special programs like usage-based insurance if they fit your lifestyle. Usage-based or pay-per-mile insurance uses a device or smartphone app to track your driving habits and mileage. If you don’t drive very often or mostly use public transit around Chicago, these programs can lower your rate by charging you based on actual miles driven. Many Illinois insurers now offer telematics programs (like Snapshot, Drive Safe & Save, etc.), which reward gentle driving and low mileage with lower premiums. Also, remember that factors like your credit score can influence your insurance cost in Illinois.
Maintaining good credit by paying bills on time and reducing debt can help you secure a better rate over the long run. And don’t forget practical steps: installing an anti-theft system or simply parking your car in a secure garage could qualify you for an anti-theft discount, especially valuable in urban areas of Chicago. The bottom line: always take advantage of every discount and savings program available. It’s free money on the table that can make your car insurance much more affordable.
Frequently Asked Questions (FAQs)
Q: What’s the minimum auto insurance required in Illinois?
A: Illinois law requires a minimum liability coverage of 25/50/20 on your auto policy. This means you must carry at least $25,000 in bodily injury coverage per person (up to $50,000 per accident for all injuries) and $20,000 in property damage coverage. These minimums keep you legal on the road, but buying higher limits is recommended to better protect your finances.
Q: How can I get cheap car insurance in Chicago?
A: Start by comparing quotes from multiple Chicago insurance providers and looking for local discounts. Keep a clean driving record to avoid surcharges on your premium. You can also work with a local company like Insure on the Spot – our Chicago-based agents can help find the best discounts and policy options for your budget.
Q: Does my credit score affect car insurance rates in Illinois?
A: Yes. In Illinois, insurance companies can use your credit history as a factor when setting rates. A higher credit score often means a lower premium, since insurers view good credit as a sign of reliable and low-risk behavior. Improving your credit by paying bills on time and reducing debt can help you secure cheaper car insurance over time.
Q: Should I drop full coverage on an older car in Illinois?
A: If your car is older and its value has significantly declined, dropping collision and comprehensive coverage can be a smart way to save money. Compare the cost of those coverages to what the car is worth – if the yearly premium for full coverage is high relative to the car’s value, it may not be cost-effective to keep it. Just remember that without comp and collision, you’ll pay out of pocket for your own car’s damages if it’s damaged, stolen, or in an at-fault accident.
Q: What is usage-based or pay-per-mile insurance, and is it available in Illinois?
A: Usage-based (pay-per-mile) insurance charges your premium based on how much and how safely you drive. It’s available in Illinois through several insurers that offer telematic programs (often via a plug-in device or smartphone app). This is a great option for Chicago drivers who don’t drive often or have short commutes – if you log low mileage and drive carefully, usage-based plans can lower your insurance costs compared to a traditional policy.
Get a Quote Today!
Lowering your car insurance premiums is easier when you have a helpful local partner on your side. Insure on the Spot is a Chicago-based auto insurance specialist that understands Illinois drivers and all the tricks to save you money. Our team can help you apply these tips – from finding every discount to choosing the right coverage levels – so you get quality coverage at the best price. Call 773-202-5060 or get a Free Quote Online Today with Insure on the Spot today and see how much you could save on your Illinois car insurance!