Nationwide is the cheapest home insurance option for most homeowners in Illinois, with an average monthly savings of $367. Below is a summary of the most affordable providers in the state.
Cheapest Home Insurance in Illinois
Updated: May 27, 2025
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Key Takeaways
Nationwide offers the cheapest homeowners insurance in Illinois if you own a new home or have bad credit.
Customers can find savings of up to 80% from the cheapest overall providers in Illinois: Nationwide and State Farm.
If you live in a high-fire-risk area, State Farm is the cheapest provider for home insurance in Illinois.
What is the Cheapest Home Insurance in Illinois?
| Nationwide | $132 | $1,585 | 45% |
| Farmers | $136 | $1,636 | 43% |
| State Farm | $142 | $1,703 | 41% |
| Allstate | $157 | $1,880 | 35% |
*These rates are based on a house built in 2000 with a $1,000 deductible, $250,000 in dwelling coverage, $125,000 in personal property coverage, $200,000 in liability coverage and class 3 fire protection. The insured is assumed to have good credit and no claims in the past five years.
THE CHEAPEST COMPANY MAY NOT BE THE BEST FOR YOU
Price is important to consider for home insurance, however it's also useful to know about a company's customer service reputation and coverage options. To help, we've created a separate guide to the best home insurance companies in Illinois, giving you more information to make the best decision for your situation.
Cheapest Illinois Home Insurance Rates by Category
While we’ve listed the cheapest options for most homeowners, those rates may not reflect your specific situation. For instance, while Nationwide is typically the cheapest overall, Nationwide offers the best rates for newer homes. To help, we’ve outlined the cheapest companies on average for common categories.
| Nationwide | Older Homes | $132 |
| Nationwide | Newer Homes | $60 |
| State Farm | Homes in High Risk Fire Areas | $142 |
| Nationwide | Bad Credit | $245 |
*Rates are modified based on our methodology’s base profile. Newer home estimates are based on a home built in 2023, high-risk fire estimates are for a policy with 8-class fire protection, and bad credit rates assume a poor credit score on the FICO scale.
Compare Personalized Cheap Illinois Home Insurance
The companies listed above typically provide the best rates for their categories, but actual rates vary based on your unique profile. Use the filter below to get a personalized list of the cheapest providers for your situation.
Data filtered by:Results filtered by:
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Coverage Level:$250K Dwelling / $125K Personal Property / $200K Liability
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Deductible:1000
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Claims History:Claim free for 5+ years
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Credit Tier:Good
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Home Age:Older Homes
| State Farm | $142 | $1,703 |
| Nationwide | $149 | $1,783 |
| Farmers | $149 | $1,792 |
| Auto-Owners Insurance | $168 | $2,015 |
| Allstate | $170 | $2,036 |
Cheapest Illinois Home Insurance By City
Risk factors for insurers vary by location, making some providers more affordable than others. For example, while Nationwide is the cheapest in most cities in Illinois, State Farm offers lower rates in Chicago.
| Aurora | Nationwide | $99 |
| Chicago | State Farm | $151 |
| Elgin | Nationwide | $104 |
| Joliet | Nationwide | $123 |
| Naperville | Nationwide | $98 |
| Peoria | Nationwide | $107 |
| Rockford | Nationwide | $106 |
| Springfield | Nationwide | $113 |
*These rates are based on a house built in 2000 with a $1,000 deductible, $250,000 in dwelling coverage, $125,000 in personal property coverage, $200,000 in liability coverage and class 3 fire protection. The insured is assumed to have good credit and no claims in the past five years.
How To Find the Cheapest Illinois Home Insurance for You
Finding affordable home insurance in Illinois can be challenging, but you can significantly lower your costs with some effort. Below are our core recommendations to help you maximize savings on your policy.
- 1
Determine your coverage needs
Having your coverage limits in mind before buying can keep you from being oversold on coverage. Make sure you determine your home insurance coverage needs beforehand and understand the types of home insurance coverage to get what you need.
- 2
Research home insurance cost information
Research home insurance costs in Illinois for your profile and available discounts to understand what qualifies as affordable. When ready to buy, ask agents directly about all discounts you may qualify for, as insurers won't apply them automatically.
- 4
Compare multiple companies apples to apples
Once you know your coverage levels and type, compare quotes from different companies for that coverage to get the best deal. We recommend gathering as many quotes as possible using different methods to get your best rate.
- 5
Use state-provided programs
If you have a high-risk profile and face coverage denials or unaffordable rates, Illinois offers a state program through the FAIR Plan. This program provides coverage for those denied by traditional insurers, often at a lower cost than insurers willing to approve you.
Cheap Home Insurance Illinois: Bottom Line
Nationwide, Farmers, and State Farm offer Illinois' most affordable home insurance. Denied coverage? State programs provide low-cost policies. Always compare multiple companies, research costs, and assess your coverage needs before deciding.
Cheapest Home Insurance Illinois: FAQ
Below are answers to common questions about the cheapest home insurance in Illinois:
What is the cheapest home insurance company in Illinois?
Nationwide offers the lowest rates for newer homes in Illinois at $60 per month or $716 per year. However, homeowners with older properties or higher fire protection needs may find better rates with State Farm or Nationwide.
How expensive is home insurance in Illinois?
Illinois has the 30th-highest home insurance rates in the U.S.
How much is home insurance in Illinois?
You should secure enough home insurance to cover the replacement of your home and possessions, considering local risks and unique items.
While not mandated by law, without a mortgage, home insurance is required by mortgage lenders to protect the full replacement value of your home. Optimal insurance should also cover personal possessions, local hazards, and any special, irreplaceable assets you may have.
How much home insurance do I need?
You should secure enough home insurance to cover the replacement of your home and possessions, considering local risks and unique items.
While not mandated by law, without a mortgage, home insurance is required by mortgage lenders to protect the full replacement value of your home. Optimal insurance should also cover personal possessions, local hazards, and any special, irreplaceable assets you may have.
How We Found the Cheapest Home Insurance Companies in Illinois
To determine the cheapest home insurance companies in Illinois, we assumed the following base profile:
- $250K dwelling coverage
- $125K personal property coverage
- $200K liability coverage
- Home built in 2000
- Frame construction
- Composition roof
- $1,000 all perils deductible
- No claims in the past 5+ years
- 3-class fire protection
All other combinations were adjusted based on this profile to provide a more accurate comparison for your specific situation. However, these figures are estimates, and we recommend comparing quotes from multiple providers to secure the best deal.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.