Car Insurance in Illinois vs. Arizona: Costs, Laws and Resources

If you’re considering moving from Illinois to Arizona, you’ll need to comply with each state’s different car insurance requirements. Both states have similar coverage requirements but with different limits: Whereas Arizona requires $30,000 body injury liability per accident, Illinois requires $50,000. Illinois also requires uninsured/underinsured motorist coverage in its minimum coverage policies.

MoneyGeek analyzed car insurance laws, requirements and costs in Illinois vs. Arizona to help you find the best and cheapest car insurance companies.

Illinois car insurance laws require more coverages and higher limits compared to car insurance laws in Arizona. For instance, Illinois’ minimum car insurance requirements include uninsured/underinsured motorist coverage, which is not required in Arizona. Also, whereas liability coverage should at least be 25/50/20 in Illinois, Arizona’s is lower at 25/50/15.

Despite requiring more coverages, the average cost of car insurance in Illinois is less than Arizona. On average, Illinois drivers spend $582 per year, while Arizona drivers spend $649. Besides coverage amount, additional factors, like population density and frequency of accidents, impact the cost of car insurance premiums.

Both Illinois and Arizona are tort or “at-fault” states. This means that drivers who are to blame for an accident are the ones who must shoulder the associated expenses. The at-fault driver’s insurance company pays for property damages, medical costs and other related expenses through the negligent driver’s liability insurance coverages.

To get the most affordable policies that are best suited for your needs and budget, you’ll need to shop around and compare rates.

Based on our extensive research, we found that the cheapest policies with minimum coverage in Illinois and Arizona are from:

• Cheapest in Illinois: GEICO ($366 per year)
• Cheapest in Arizona: GEICO ($366 per year)

Although the two states have different minimum coverage requirements, the same provider offers the cheapest premium, at the same rate, in both states.

Your coverage level also determines the cost of your car insurance in Illinois vs. Arizona, with minimum coverage policies being cheaper than full coverage policies. But for both types of coverages, premiums in Illinois tend to be more affordable compared to premiums in Arizona.

In Illinois and Arizona, the average cost of a minimum coverage policy is $582 and $649 per year, respectively. But drivers who opt for full coverage insurance will pay around $1,134 in Illinois and $1,284 in Arizona on an annual basis.

A host of different variables contribute to the cost of your car insurance, so it’s impossible to pin price differences on a single factor.

Generally, car insurance rates in Illinois and Arizona are comparable, with policies in Arizona costing slightly more than in Illinois, despite Illinois’ additional coverages and higher minimum coverage limits. This is likely caused by Arizona’s higher rates of vehicle theft and increased frequency of natural disasters, which could translate to increased risk.

Car insurance rates can also vary greatly depending on your city.MoneyGeek identified the cities offering the cheapest and most expensive minimum coverage policies in the two states.

In Illinois, the cheapest car insurance policies are offered in Peoria at $419 per year, while the most expensive policies can be found in Chicago at $582 per year. As for Arizona, residents in Tucson have the cheapest annual car insurance rates at $578, compared to Glendale and Phoenix, which both tie for the cities with the most expensive car insurance, with a rate of $713 per year.

Since car insurance requirements do not vary within a state, this does not affect the cost of your annual rate. Instead, rates are usually driven by population density, with denser, urban areas having higher car insurance rates than their less dense, rural counterparts.

When moving from Illinois to Arizona or vice versa, you’ll need to update your driver’s license, registration and car insurance policy.

You have the option to stay with your current insurer if it provides adequate coverage, but your premiums may change to reflect the risks and coverage requirements in your new state.

If you’re looking for another insurer, use MoneyGeek’s resources to find the option that best fits your driving profile.

Car insurance laws, requirements and costs in Illinois and Arizona differ. MoneyGeek answered some of the most frequently asked questions about car insurance in Illinois vs. Arizona to help you find the right company and policy for your needs and budget.

To calculate average car insurance rates by company and across Illinois and Arizona, MoneyGeek collaborated with Quadrant Information Services to collect auto insurance quotes from both locations. We used a sample profile for a 40-year-old driver with a clean driving record and minimum coverage unless modified by criteria like coverage level, age, driving offenses and credit score. Learn more about how costs are calculated in our MoneyGeek car insurance methodology.

Minimum car insurance requirements by state were sourced from the Department of Motor Vehicles (DMV) of the respective state.