Cheap Car Insurance for Low-Income Drivers in Illinois

What is low-income car insurance in Illinois?

Low-income car insurance in Illinois refers to coverage options for drivers on a limited income. Insurers typically don’t offer a dedicated low-income policy, and Illinois doesn’t have a state-based program for affordable auto insurance, such as the California Low Cost Automobile Insurance Program.

In Illinois, about 12% of residents live in poverty, according to the U.S. Census Bureau.^[1] If you’re on a limited income in Illinois, you have ways to save money on your car insurance. Checking for discounts is one of the easiest ways to lower your costs. Many insurers offer savings for safe driving, bundling policies, and driving fewer miles.

You can also lower your expenses by opting for minimum liability insurance. Illinois requires all drivers to have minimum liability insurance for injuries or property damage they cause to another driver.

Full coverage is typically more expensive, but it includes liability, collision, and comprehensive coverage. Full coverage costs more money up front, but it offers financial protection if you’re in a serious accident.

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Cheapest car insurance in Illinois

The cheapest car insurance company in Illinois is Auto-Owners, with an average liability rate of $41 per month. The average cost of car insurance in Illinois is $83 per month for liability-only coverage, compared to the national average of $98.

Large parts of Illinois have relatively low population density, which partly explains the state’s lower rates. Decatur has about 68,000 residents, and liability-only rates in the city average $69 per month.^[2] But more densely populated Chicago, which has almost 3 million residents, has higher liability insurance premiums of $104 per month.

In the following table, you can find the cheapest car insurance rates in Illinois.

The below rates in Illinois are estimated rates current as of: Monday, August 31 at 5:00 PM PDT. 

Insurance Company	Average Quote: Liability Only
Auto-Owners	$41
State Farm	$45
Certainly	$59
Country Financial	$62
Progressive	$62
Direct Auto	$64
The General	$64
GEICO	$66
Allstate	$67
Erie	$68
First Chicago	$69
USAA	$72
GAINSCO	$76
Safeco	$76
American Family	$78
Bristol West	$82
Mercury	$82
National General	$82
Freedom National	$89
Elephant	$93
Clearcover	$95
First Acceptance	$96
Dairyland	$98
Travelers	$99
Insurify Car	$101
Farmers	$105
Root	$107
Liberty Mutual	$109
Hugo	$114
Mendota	$114
State Auto	$139

Disclaimer: Table data sourced from real-time Illinois car insurance quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual car insurance quotes in Illinois may vary based on the policy buyer's unique driver profile.

Cheapest car insurance for drivers with poor credit in Illinois

Car insurance companies use many factors when determining rates, including your credit history.^[3]

Insurers use credit-based insurance scores to assess risk and predict potential future claims. Drivers with poor credit tend to file more claims and pay more for car insurance. Using credit for insurance pricing is legal in Illinois, but some states ban the practice.

That said, Illinois insurers can’t use gender, income, or other personal factors to calculate your score. Companies also can’t deny coverage solely based on credit.^[4]

The table below shows the cheapest car insurance for Illinois drivers with poor credit.

The below rates in Illinois are estimated rates current as of: Monday, August 31 at 5:00 PM PDT. 

Insurance Company	Average Liability Quote: Poor Credit
Auto-Owners	$62
State Farm	$65
Certainly	$74
Country Financial	$75
Progressive	$78
Direct Auto	$79
The General	$79
GEICO	$82
Allstate	$84
First Chicago	$86
USAA	$89
GAINSCO	$94
Safeco	$94
American Family	$95
Erie	$100
Mercury	$100
Bristol West	$102
National General	$102
Freedom National	$111
Elephant	$116
Travelers	$117
Clearcover	$118
First Acceptance	$120
Dairyland	$122
Insurify Car	$126
Liberty Mutual	$130
Farmers	$130
Root	$133
Hugo	$143
Mendota	$143
State Auto	$174

Disclaimer: Table data sourced from real-time Illinois car insurance quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual car insurance quotes in Illinois may vary based on the policy buyer's unique driver profile.

Car insurance options for low-income drivers in Illinois

Illinois doesn’t offer a state-sponsored low-income car insurance program. But you can follow the tips below if you’re looking for low-income car insurance.

• Shop around. Get quotes from several insurance companies so you can make fair comparisons and find affordable coverage. You can check out local options like First Chicago Insurance alongside national insurers.

• Consider pay-per-mile insurance. Pay-per-mile insurance can lower your costs if you don’t drive often. Chicagoans who use public transportation may benefit from pay-per-mile coverage.

• Check for discounts. Most insurance companies offer a range of discounts, like safe driving, good student, or multi-policy discounts. You can also get a discount if you belong to certain groups. The University of Illinois Alumni Association offers discounts on auto insurance with Liberty Mutual.

• Maintain a clean driving record. Avoiding accidents, speeding tickets, and driving under the influence (DUI) convictions can help you qualify for the best rates.

High-risk drivers who can’t find coverage can check out the Illinois Automobile Insurance Plan. ILAIP rates are typically more expensive than standard insurance, but it may be your only option if traditional insurers deny you coverage.^[5]

Some non-standard insurers, such as The General and Direct Auto, specialize in drivers with an SR-22 requirement or a DUI conviction.

Minimum car insurance requirements in Illinois

Illinois drivers must comply with state law and have a minimum amount of liability insurance, including:

• Bodily injury liability coverage: You need $25,000 per person and $50,000 per accident to cover injuries you cause to others in an accident.

• Property damage liability coverage: You need $20,000 to cover damage you cause to someone else’s property.

• Uninsured motorist (UM) bodily injury coverage: You need $25,000 per person and $50,000 per accident of UM insurance to cover your injuries if an uninsured driver hits you.

Drivers who want to purchase higher UM limits must also buy underinsured motorist (UIM) bodily injury insurance coverage.^[6]

If you’re looking for affordable car insurance coverage, minimum coverage can lower your costs. But it covers only injuries and damages you cause to others. For more financial protection, you need a full-coverage policy.

Full coverage includes liability, comprehensive, and collision coverage. Illinois has high rates of auto theft and severe weather, and full coverage can protect against both.

The table below shows Illinois’ minimum car insurance coverage requirements.

Coverage	Minimum Requirement	What It Covers
Bodily injury liability	$25,000 per person/$50,000 per accident	Injury or death to another driver or pedestrian
Property damage liability	$20,000 per accident	Property damage to another person’s vehicle, fence, pole, etc.
Uninsured motorist (UM) bodily injury coverage	$25,000 per person/$50,000 per accident	Your bodily injury from an uninsured driver or a hit and run

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What affects car insurance rates in Illinois?

Many personal factors can affect auto insurance premiums, such as your age, driving record, and vehicle. But other factors influence premiums, like the frequency of severe weather and traffic congestion.

Some Illinois-specific factors that affect rates include:

• Traffic congestion: Major cities like Chicago have heavy traffic congestion, which can increase the likelihood of an accident. Interstate 90 in Chicago is the most-traveled route in the area, with an annual average daily traffic of 342,000 vehicles.^[7]

• Uninsured drivers: About 16% of Illinois drivers don’t have car insurance, according to the Insurance Information Institute.^[8] As a result, insurance companies may increase rates to account for additional claims.

• Auto theft rates: Thieves stole 28,327 vehicles in Illinois in 2025, the third-highest rate in the country, according to the National Insurance Crime Bureau. Auto thefts can increase insurance costs due to more claims.

• Severe weather: Illinois is prone to severe storms, which can affect road safety and lead to additional claims.

Full coverage can help protect you against many of these risks. For low-income drivers in Illinois on a budget, shopping around is key to finding the right protection at the best price.

Low-income car insurance FAQs