With over a population of 10 million, Chicago is the United States third most populated city. It is also the biggest city in the state of Illinois. Sitting on the coastline of Michigan Lake, Chicago is known for its architecture, museums, parks, recreational events, and cultural events. This place is also known for high-end shopping, and it attracts visitors from all over the world. Chicago city is known for multi-culture and diversity with around 77 diverse neighborhoods.
It has a number of different types of industries and manufacturing base. It is well known for its huge network of public transportation. It is a busy city with heavy traffic and congestion on its expressways and streets. Heavy traffic leads to possibilities of accidents. Hence, it is a legal mandate for all drivers to have car insurance in Chicago. A driver should at least have liability coverage in his car insurance in Chicago to cover injuries and damages in case of an accident.
Chicago, with such a diverse neighborhood, has different insurance cost for each location. Some location would be more expensive while some may be cheaper. The north side is found to be cheaper than the southern side of Chicago. A zip code search on the website of an insurance provider will give more information about the rates in a specific area. However, it can vary from one insurance provider to another. Do your research and compare rates with various insurance companies until you find the best quote. You can start by checking the best car insurance companies. This will help you to identify the best auto insurance in Chicago.
All the states in the United States are required to have an auto insurance policy of a minimum amount. Even drivers in Chicago are legally bound to have an insurance policy of a minimum amount. However, in Chicago, the coverage you’re required to have is quite higher as compared to most of the other states. This is required to protect you from the financial burden from an unforeseen accident. The minimum liability coverage required in Chicago is as follows:
- $25,000 per person – Bodily injury
- $50,000 per accident – Bodily injury
- $20,000 per person – Property damage
- $25,000 per person – Bodily injury for uninsured motorist
- $50,000 per accident – Bodily injury for uninsured motorist
Age bracket is considered by almost every insurance company while giving an insurance quote. Teenagers have to bear the highest premium cost as compared to any other age group. From the age group of 20 and above, the amount reduces. The premium charge will continue to decrease until the age group up to 50. However, once the age group hits 60, the premium rise again, and it continues to rise for drivers older than 60 years.
Factors that Determine Car Insurance in Chicago
A clean record is another important factor that you should maintain to have a better and cheaper insurance cost. Driving history with speeding tickets, violation of road laws, uninsured for a certain period, and accidents can cost you a huge hike on your insurance rate. If you have been in an accident where you were at fault, it will definitely increase the chances of higher insurance rates. It is quite crucial to maintain a good driving record to get a better insurance cost.
Females in Chicago pay lesser premiums than men. Similarly, drivers who are married pay lesser than an individual with single or divorced status. Single status drivers pay a higher premium as compared to divorced, married or widowed individuals.
Other Factors that Determine Auto Insurance in Chicago
Maintaining a good credit score is another way to get a good insurance rate. Insurance companies have found a correlation between a person making a claim and their credit score. As per their research, individuals with a low credit score are likely to file for claims. Hence, they charge higher insurance rate for people with a low credit score as compared to those with a good or excellent credit score.
Location plays a key role in your insurance rate. Areas where theft and crime are high, the charge for insurance in that area will be higher. Also, areas where there are a number of uninsured motorists, the insurance rate will go higher. When you’re looking for purchasing insurance with good benefits and coverage, check for insurance companies with good ratings. Go through the NAIC ratings to look up for reputed providers. Always go with a reputed insurance company with good coverage options and who provide reasonable rates than just going for a cheaper option.
