Cheapest Car Insurance for Low-Income Drivers in Illinois (October 2024)

For individual drivers with poor credit and low income, Mercury offers the cheapest rate in Illinois at $448 annually. For low-income families, Auto-Owners provides the most affordable rate at $695 annually.

Illinois does not offer state-backed car insurance programs for low-income families and individuals. Finding the provider with the most affordable rate is one option to manage costs. Additionally, there are ways to get discounts to help alleviate the cost of car insurance.

Minimum coverage will help you drive legally. However, it has downsides. For example, in an at-fault accident, minimum coverage may not cover all the damages, leading to higher out-of-pocket expenses.

Car insurance companies in Illinois do not consider income when calculating your rates. Instead, they look at factors like age, driving record, credit history, and the type of car you drive. At-fault accidents and moving violations can increase your rates.

To find the cheapest rates, it's best to compare quotes from several insurance companies. This approach helps you see different options and choose the most affordable one.

If your budget is tight, a basic minimum coverage policy is often the cheapest way to stay legal on the road. Additionally, if you rarely drive, pay-per-mile insurance can be the best option to save money. MoneyGeek rounded up the cheapest insurers for low-income drivers in Illinois to help you save.

To legally drive in Illinois, you must have car insurance that meets the state's minimum car insurance requirements. Your policy must include the following minimum coverages:

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

If you're on a tight budget, a liability-only car insurance may suffice. It covers the other driver's expenses in an accident you cause but doesn't cover your vehicle's damages. For protection against a wider range of incidents, including damages to your own car, consider a full coverage car insurance policy, which includes collision and comprehensive coverages.

In Illinois, where harsh winters can lead to increased accidents and vehicle damage, opting for full coverage could be a wise decision. It's essential to weigh the risks and benefits of different coverages to determine what's best for your situation. For example, if you have a newer car or are still paying off your vehicle, full coverage can offer the peace of mind that your investment is protected.

Credit history plays a crucial role for drivers with low income, as it can significantly affect car insurance premiums in Illinois. A poor credit record may signal higher risk to insurers, leading to increased premiums. Understanding this impact is vital for managing insurance costs effectively.

The cheapest car insurance companies for drivers with low-income and poor credit record in Illinois are:

• Mercury: $448 per year, $37 per month
• Country Financial: $535 per year, $45 per month

Drivers with good insurance credit can get the cheapest car insurance in Illinois from:

• Mercury: $305 per year, $25 per month
• Country Financial: $338 per year, $28 per month

It's essential to secure state minimum coverage, as driving without insurance in Illinois is illegal and considered a misdemeanor. Penalties include suspension of your driver’s license, vehicle registration, and fines ranging from $175 to $1,000, among other consequences.

While your income doesn't change your car insurance rates, your family setup does. For instance, in Illinois, a single parent's annual premium can be $379 higher than that of a married couple with a teen. Married couples enjoy more affordable rates, with a significant yearly saving of $379 compared to single parents.

The most budget-friendly car insurance companies for married couples with a teen in Illinois are:

• Auto-Owners: $695 per year; $58 per month
• State Farm: $743 per year; $62 per month

For single parents with a teen, the cheapest options are:

• Auto-Owners: $1,074 per year; $90 per month
• State Farm: $1,210 per year; $101 per month

These rates show that family type plays a role in determining car insurance costs. Married couples with a teen tend to find more economical options than single parents. Keeping a solid credit history is also key to securing these more wallet-friendly rates.

Car insurance premiums generally decrease as you reach your early senior years, typically around age 55 to 65, especially if you have a clean driving record.

The two cheapest car insurance for senior drivers with low-income and poor credit history are:

• Mercury: $38 per month, $453 per year
• Country Financial: $44 per month, $531 per year

After the age of 70, car insurance rates typically increase as older drivers are statistically considered higher risk. This trend continues each year, meaning premiums generally rise as seniors age. In Illinois, specific laws or guidelines may apply for seniors getting car insurance.

Income doesn't directly affect car insurance rates in Illinois. However, low income can lead to a poor credit record, which might result in higher rates. Conversely, a good credit score can help you get lower rates. Understanding the factors that contribute to car insurance rates can help you make informed decisions in choosing the best car insurance for you.

There are several ways to find affordable car insurance in Illinois. Whether or not you qualify for state-sponsored programs, you can still save money on your premiums by exploring different strategies. Residents of the Prairie State can benefit from comparing rates, maintaining a good driving record, and taking advantage of available discounts.

Here are some tips to lower your car insurance premiums:

Finding affordable car insurance can be tough for low-income drivers in Illinois. Get answers to common questions about low-income car insurance in Illinois.