Nationwide is the cheapest home insurance company in Illinois, with an average premium of $132 per month ($1,585 per year). That's 45% below the state average. Farmers is next at $1,636 per year, $51 more than Nationwide. State Farm and Allstate cost $118 and $295 more per year.
Cheapest Homeowners Insurance in Illinois: 2026 Companies
Updated: October 1, 2026
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Key Takeaways
Nationwide is the cheapest home insurance in Illinois at $1,585 per year. It's also the lowest-priced option for new homes and homeowners with poor credit.
The four cheapest Illinois providers cost 35% to 45% less than the state average.
State Farm is the cheapest provider for homes in high-fire-risk areas of Illinois at $142 per month.
Cheapest Home Insurance Providers 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 MoneyGeek's Illinois home insurance calculator to get a personalized estimate of what you might pay and get quotes from affordable providers.
Illinois Home Insurance Calculator
MoneyGeek's home insurance calculator uses the profile of 41- to 60-year-old homeowners with no prior claims.
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Cheapest Illinois Home Insurance By City
Nationwide offers the lowest home insurance rate in seven of the eight Illinois cities we analyzed. Its monthly premiums range from $98 in Naperville to $123 in Joliet. State Farm is the cheapest option in Chicago at $151 per month.
Chicago homeowners pay the most of any city in the table, even at the cheapest rate. The $151 premium is $53 more per month ($636 per year) than Naperville's $98.
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 |
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.
- 1Determine 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.
- 2Research 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.
- 4Compare 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.
- 5Use 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 in Illinois: Bottom Line
Nationwide is the cheapest home insurance in Illinois at $1,585 per year. Farmers ($1,636) and State Farm ($1,703) follow. Prices vary by city: the cheapest provider charges $98 per month in Naperville and $151 in Chicago.
Denied coverage by standard insurers? The Illinois FAIR Plan is the state's insurer of last resort for homeowners who can't find a policy elsewhere. Get quotes from at least three insurers and compare the same dwelling coverage limit and deductible on each one.
Cheapest Home Insurance Illinois: FAQ
Below are answers to common questions about the cheapest home insurance in Illinois:
Nationwide is the cheapest home insurance company in Illinois at $132 per month ($1,585 per year). The insurer is also cheapest for newer homes at $60 per month ($716 per year). Homeowners in high-fire-risk areas pay less with State Farm.
Illinois has the 30th-highest home insurance rates in the U.S. The average Illinois homeowner pays $2,883 per year, compared with the national average of $3,467. The four cheapest insurers charge 35% to 45% less than the state average.
Buy enough dwelling coverage to pay for rebuilding your home at current construction costs. Illinois law doesn't require homeowners insurance, but mortgage lenders do. Lenders require coverage for the home's full replacement value until you pay off the loan.
Your policy should also cover your belongings. Add extra coverage for items a standard policy limits, such as jewelry, art and collectibles. Check your policy for local hazards your insurer excludes.
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.
Rate data comes from Quadrant Information Services.
About Mark Fitzpatrick
Mark Fitzpatrick is a licensed Property and Casualty (P&C) Insurance Producer and MoneyGeek's resident expert in insurance and economics. In nearly a decade covering the insurance market at LendingTree and MoneyGeek, he's analyzed hundreds of carriers and millions of rates across auto, home, renters, health and life insurance.
His work has appeared in The Washington Post, The New York Times and NPR. He draws on independent cost and consumer experience data, and no insurance company partnerships affect his recommendations.
Mark studied at Boston College and later earned a master's in economics and international relations from Johns Hopkins University. He worked in financial risk management at State Street before joining MoneyGeek. He's also a five-time “Jeopardy!” champion.