Cheap Illinois Low-Income Car Insurance for Families and Individuals

There are no government programs in Iowa to assist low-income drivers with the cost of car insurance. Shopping around for the cheapest state minimum coverage policy might be the best solution to find affordable insurance. MoneyGeek found that Mercury offers the cheapest car insurance for low-income families in Illinois, while GEICO is the cheapest option for individuals, student and senior drivers.

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Last Updated: 11/21/2022
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The factor that drives up the cost of car insurance in Illinois is adding a teen driver to your policy. Your age matters too: Student and senior drivers pay more than middle-aged drivers. While your income is not considered by insurers when calculating your premiums, your credit score can have a significant impact. MoneyGeek compares rates to help you find affordable low-income car insurance in Illinois whether you have good or poor credit scores.

Is There Car Insurance for Low-Income Families and Individuals in Illinois?

Some 11.8% of Illinois drivers are uninsured, even though drivers in that state are legally required to have car insurance. Since car insurance policies tend to be expensive, these drivers might be avoiding buying car insurance because of its cost.

Because Illinois does not have a government program that assists low-income drivers with car insurance costs, the best solution is to purchase a minimum coverage policy that meets Illinois’ state minimum requirements. Low-income drivers who drive infrequently can also consider pay-per-mile insurance.

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Does Illinois Have a Government Program to Support Low-Income Drivers with Insurance?

Illinois does not provide government assistance to help low-income drivers with the cost of car insurance. Still, there are ways you can save money on car insurance. For example, you should shop around and compare quotes from several car insurance companies in Illinois. To help, MoneyGeek compared all insurance providers in the state across different driver profiles and found the cheapest low-income car insurance in Illinois.

The Cheapest Illinois Car Insurance Companies for Low-Income Drivers

Insurance companies do not consider your income when calculating your car insurance premiums; however, income-related factors (like your age) can have a large impact. If you are a low-wage earner and can’t budget for a full coverage car insurance policy, you can opt for one with minimum coverage. MoneyGeek found that policies from Mercury and GEICO offer the cheapest car insurance for low-income families and individuals in Illinois.

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The Cheapest Illinois Car Insurance Companies for Low-Income Families

Income does not affect the cost of your car insurance premiums in Illinois, but your credit score does.

As an example, single parents with a teen driver and poor credit score pay approximately $1,468 per year more than those with good credit. Similarly, couples with a teen driver and poor credit pay about $1,988 more per year than if they have good credit.

The two cheapest companies for couples with a teen driver and poor credit are:

  • Mercury: $3,030 per year
  • Country Financial: $3,173 per year

The two cheapest companies for single parents with a teen driver and poor credit are:

  • Mercury: $2,271 per year
  • Country Financial: $2,277 per year

A low income certainly doesn’t mean you automatically have poor credit scores. But good credit does help lower your car insurance premiums. Use the table below to see how much you can save.

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Single parent w/ a kid

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Good Credit Score

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  • Company
    Annual Rates
  • Mercury
    $1,310
  • Country Financial
    $1,314
  • USAA
    $1,445
  • State Farm
    $1,550
  • GEICO
    $1,565
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The Cheapest Illinois Car Insurance Companies for Low-Income Individuals

On average, drivers in Illinois with poor credit pay $430 more than those with good credit. Let’s compare rates from the cheapest companies in Illinois for our sample 40-year-old male driver.

For a 40-year-old driver with poor credit, rates from the cheapest companies are:

  • GEICO: $653 per year
  • Mercury: $656 per year

Even if you have a low income, you can still have a good credit score. If our sample driver in this case has good credit, a car insurance policy from GEICO will cost about $377 per year and $378 from Mercury.

Switch by Credit Score:

Good Credit Score

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  • Company
    Annual Rates
  • GEICO
    $377
  • Mercury
    $378
  • Country Financial
    $396
  • USAA
    $424
  • State Farm
    $468

The Cheapest Illinois Car Insurance Companies for Low-Income Students

Student drivers pay high insurance premiums. It’s their inexperience behind the wheel (not their typically low incomes) that makes young student drivers riskier to insure than older drivers. Certainly, paying those premiums can eat up a considerable chunk of a student or recent grad’s income, making it more important to find cheap options.

Students with poor credit scores in Illinois can look to the following companies for the cheapest car insurance rates:

  • GEICO: $1,602 per year
  • Mercury: $1,602 per year

Students with low incomes don’t have to have poor credit. And it pays to have good credit. For low-income student drivers with good credit scores, car insurance from GEICO costs an average of $924 per year, and Mercury comes in at $928.

Switch by Credit Score:

Good Credit Score

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  • Company
    Annual Rates
  • GEICO
    $924
  • Mercury
    $928
  • Country Financial
    $972
  • USAA
    $1,039
  • State Farm
    $1,146

The Cheapest Illinois Car Insurance Companies for Low-Income Seniors

Senior drivers also tend to pay high insurance premiums due to their risk. As people age, they may experience health conditions that impair their ability to drive, such as reduced vision, impaired hearing and slower motor reflexes. And, like anyone else, credit scores also affect the car insurance rates for senior drivers.

Senior low-income drivers with poor credit pay approximately $472 per year more than their counterparts with good credit.

The two companies with the cheapest car insurance in Illinois for low-income seniors with poor credit are:

  • GEICO: $707 per year
  • Country Financial: $734 per year

Of course, having a low income doesn’t automatically mean poor credit. Low-income seniors with good credit scores pay much less for car insurance premiums than those with poor credit. For example, GEICO costs approximately $408 per year, while Country Financial costs $423.

Switch by Credit Score:

Good Credit Score

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  • Company
    Annual Rates
  • GEICO
    $408
  • Country Financial
    $423
  • Mercury
    $454
  • State Farm
    $468
  • USAA
    $481

Does Income Affect Car Insurance Rates in Illinois?

Whereas insurance companies do not consider your income when calculating your car insurance premium, they do look at your age and your credit scores.

Young drivers are typically low income because they’re still in school or just starting their careers. But it’s not that low-income status that increases their insurance premiums. Rather, young drivers are deemed riskier to insure due to their lack of driving experience, and their premiums reflect that higher risk.

MoneyGeek analyzed the factors that affect your car insurance rates in Illinois. The three most important are:

  • Your age.
  • Adding a teen driver to your policy.
  • The coverage levels you select.

Insurers also consider your credit score and your car model, which can significantly impact your insurance cost.

  • Factor
    How it Affects Your Rates
  • Adding a Teen Driver

    In Illinois, the factor that changes the cost of insurance most significantly (by 3.6x) is adding a teen driver to your policy.

  • Age of Driver

    Your age matters too. In Illinois, young drivers pay 2.5x more than middle-aged drivers.

  • Coverage Levels

    A full coverage policy is 2.2x more expensive in Illinois than the state minimum.

  • Credit Score

    Drivers with poor credit scores may pay 2.1x more than those with a good or excellent score.

  • Car Model

    Newer car models can make the cost of your insurance twice as expensive in Illinois.

Frequently Asked Questions About Low-Income Car Insurance in Illinois

Below we answer a few of the most frequently asked questions about low-income car insurance in Illinois.

Methodology

MoneyGeek calculated the cost of car insurance for low-income drivers in Illinois using quotes sourced in partnership with Quadrant Information Services. The sample driver is either a 40-year-old male, a single 40-year-old parent with a 16-year-old child, an adult couple each 40 years old or a couple with a 16-year-old child. The individual or family drives a 2010 Toyota Camry LE. The driver buys the minimum car insurance required in Illinois.

Costs for poor and good credit scores were extrapolated based on MoneyGeek’s dataset of credit score rate adjustments by score categorization.

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.