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

Car insurance costs and requirements vary in Illinois and Indiana due to differences in insurance laws and providers. In Illinois, GEICO offers the cheapest minimum coverage policy at an average annual cost of $366, while Erie provides the cheapest policy in Indiana at $290.

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Last Updated: 11/2/2022
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If you’re moving from Illinois to Indiana or vice versa, you need to consider the different car insurance requirements in each state. Property damage liability is required in both states; the only difference is that Indiana requires $25,000 while Illinois just requires $20,000.

In our car insurance Illinois vs. Indiana review, MoneyGeek looked at insurance regulations, criteria, and costs to help you get the cheapest auto insurance coverage.

Car Insurance Laws in Illinois vs. Indiana

Illinois' minimum auto insurance laws and Indiana's car insurance laws include the same minimum liability coverage limits, except property damage liability is higher in the latter state: Illinois requires liability limits of 25/50/20, while Indiana has liability limits of 25/50/25. Illinois drivers are also required to have uninsured/underinsured motorist coverage.

In Illinois, the average annual cost of state minimum coverage is $582, while in Indiana, it’s $409. This cost difference could be explained by Illinois’s additional motorist coverage requirement but other factors like population density and accident frequency may also contribute to the higher rate.

MINIMUM CAR INSURANCE REQUIREMENTS IN ILLINOIS AND INDIANA

Illinois Requirements

  • $25,000 in bodily injury liability per person
  • $50,000 in bodily injury liability per accident
  • $20,000 in property damage liability
  • $25,000 in uninsured/underinsured motorist bodily injury liability per person
  • $50,000 in uninsured/underinsured motorist bodily injury liability per accident

Indiana Requirements

  • $25,000 per person for bodily injury
  • $50,000 per accident for bodily injury
  • $25,000 per accident for property damage
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How Are Car Insurance Laws Enforced in Illinois and Indiana?

Illinois and Indiana are “at-fault” or tort states, which means that the driver who caused the accident is responsible for paying any associated damages or medical expenses. This is different from a “no-fault” state, where each driver files claims through their own insurance companies regardless of who caused the accident.

Cheapest Car Insurance Companies in Illinois vs. Indiana

According to MoneyGeek’s analysis, the following companies offer the cheapest minimum insurance policies in Illinois and Indiana:

  • Cheapest in Illinois: GEICO ($366 per year)
  • Cheapest in Indiana: Erie ($290 per year)

GEICO and Erie are among the cheapest providers in both states, but insurance rates in Illinois are more expensive than those in Indiana. This shows how the cost of insurance can vary significantly by state.

Cheapest Car Insurance Companies in Illinois

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Cheapest Car Insurance Companies in Indiana

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THE CHEAPEST COMPANY FOR YOU MAY DIFFER

The cheapest auto insurance rates in Illinois and Indiana are offered by GEICO and Erie, but this is only for minimum coverage policies. The amount of coverage you have, your age, driving history, geography and other factors all influence your premium, so your rate may be different. In both states, MoneyGeek looked into the most cost-effective options:

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Average Cost of Car Insurance in Illinois vs. Indiana

In comparing minimal and full coverage pricing for car insurance in Illinois vs. Indiana, we found that premiums are significantly higher in Illinois for both types of coverage.

The average yearly cost of minimal coverage in Illinois is $582, whereas it is $409 in Indiana. In Illinois and Indiana, full coverage policies cost an average of $1,134 and $725 per year, respectively. However, because rates are determined by a variety of different factors, your final cost may vary.

Average Cost of Car Insurance in Illinois vs. Indiana

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  • Driver
    Illinois Annual Premium
    Indiana Annual Premium
  • Minimum Coverage
    $582
    $649
  • Full Coverage
    $1,134
    $1,284
  • Adding a Young Driver
    $3,642
    $3,231
  • Drivers With a Violation
    $1,452
    $1,583
  • Drivers With Poor Credit
    $2,077
    $2,495

Why Are Car Insurance Rates More Expensive in Illinois vs. Indiana?

Your car, driving habits and demographic characteristics, as well as the coverages, limitations and deductibles you select, all contribute to the cost of your auto insurance. Because auto insurance costs are influenced by multiple variables, it’s impossible to pin a price difference on one factor.

Although both states are “no-fault” states, Illinois has a higher rate of the urban share of the population, which means more densely packed people and the possibility of more accidents than Indiana. In addition to Illinois’ more extensive coverage requirements, this could contribute to the higher cost of insurance in Illinois.

Car Insurance Costs by City in Illinois vs. Indiana

Auto insurance costs vary considerably based on where you live within a state. While all states have the same auto insurance requirements, other factors like population density and cost differences across cities significantly impact the cost.

In Illinois, the cheapest car insurance is available in Peoria, with policies costing $419 per year, on average. Chicago drivers will pay the most for car insurance at $582 per year for a minimum coverage policy. As for Indiana, Fort Wayne has the cheapest car insurance policies at $384 per year and Evansville has the most expensive policies at $428 per year.

Car Insurance Costs by City in Illinois

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Car Insurance Costs by City in Indiana

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Moving Between Illinois and Indiana? What to Know

You will need to transfer your driver's license and registration if you relocate from Illinois to Indiana or vice versa. If your current insurer is satisfactory, you may be allowed to keep it, although your rates may change to reflect the new state's risks and coverage requirements.

If you're looking for a new insurance company, MoneyGeek has a number of resources to assist you in finding the best policy for you.

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    Use MoneyGeek’s car insurance calculators for Illinois and Indiana

    Depending on your age, driving record, credit score, vehicle type and other factors, MoneyGeek's Illinois auto insurance calculator and Indiana car insurance calculator will calculate the cost of a policy in each state.

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    Learn about car insurance for high-risk drivers in Illinois and Indiana

    High-risk drivers are more likely to pay higher insurance premiums or be denied coverage by some insurers. Illinois SR-22 insurance and Indiana SR-22 insurance are available which demonstrates that you have at least the bare minimum of auto insurance coverage required by the state.

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    Figure out your options for temporary car insurance in Illinois and Indiana

    Even though most policies last at least six months, there are ways to get temporary auto insurance in Illinois or temporary car insurance in Indiana if you're only in the state for a short time.

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    If you’re a low-income driver, see if Illinois or Indiana offer car insurance programs

    MoneyGeek offers a wide range of resources to help low-income drivers in Illinois and low-income drivers in Indiana save money on car insurance plans.

FAQs About Illinois and Indiana Car Insurance

MoneyGeek answered some frequently asked questions about car insurance in both states to help you compare car insurance in Illinois vs. Indiana.

Methodology

To calculate average car insurance rates by company and across Illinois and Indiana, 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.

About the Author


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Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.


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