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Cheap Car Insurance Chicago IL tend to pay $600 more for auto insurance premium than the rest of the state ( ILLINOIS ). Average car insurance in Chicago IL can cost around $1,765 per year, while average car insurance rate for Illinois is $1,158. In Chicago itself, the difference between the cheapest ( Unique Car Insurance – $609 ) and the most expensive car insurance company ( Hanover Car Insurance – 2,352 ) is over $1650 a year. We have compared car insurance quotes from multiple companies in Chicago to determine which insurance company offer the cheapest car insurance rates and which has the most expensive quotes. Based on our data Unique, Lighthouse and Farmers Car Insurance offer the cheapest auto insurance rates in Chicago. These three low cost car insurance companies are almost 50% lower than average car insurance rates in Chicago IL.