Illinois drivers may notice their wallets are a little lighter this year as new reports show motorists in the state had to pay 35% more for full coverage auto insurance in 2023.
State Farm and Allstate insurance companies, both based in Illinois, had the highest rate increases. Since 2022 they’ve increased rates by a combined total of nearly $1.2 billion.
According to Insurify, an insurance comparison shopping website, close to 62% of Americans reported their car insurance rates increased in 2023, and it's predicted that car insurance costs will increase by another 7% in 2024.
Bob Passmore with the American Property Casualty Insurance Association explained what's behind the increase.
"You've seen increases in repair costs, parts, labor, medical costs, all those things have been going up, and the cost of auto insurance premiums tend to trail the rest of the inflationary trends," said Passmore.
But other states see less frequent and less severe rate hikes, according to Abe Scarr with the non-profit Illinois PIRG.
Right now, Illinois and Wyoming are the only two states in the country where lawmakers don't have the power to reject or modify rate hikes. Legislation filed in the state House last year aims to change that.
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"When rates should go down, the insurers are slow to do it. When they have reason to raise rates, they do it very quickly and very aggressively," Scarr said. "And this is where regulation can play a role to make sure that we're getting a fair shake."
Passmore said that legislation is unnecessary because Illinois auto insurance rates are similar to the national average, and it could make the Illinois insurance market less competitive.
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In statements, both Allstate and State Farm said higher repair costs are driving the rate increases.
"State Farm is the largest insurer of autos in the state of Illinois," a statement from State Farm Communications Specialist Gina Morss-Fischer read. "Auto claim costs are being compounded by inflation and supply chain disruptions. All of this has increased the cost of labor and materials, which translates to higher auto repair costs. We continue to adjust to these trends to make sure we are matching price to risk. Overall changes in premiums for individual customers will vary."
"Our payments to help customers recover from accidents have increased significantly in recent years with more cars on the road, more severe accidents, and higher repair costs from inflation," a statement from All State Communications Manager Ben Corey read. "Customers can save money based on how they drive with products like Drivewise and by bundling home and auto."
How to save on your auto insurance
Experts say to shop around every few years for new quotes. You should also bundle your insurance policies to potentially get a lower rate.
Also, consider increasing your deductible. Experts say you're likely to have more small claims than big ones.
Many insurance companies also offers apps or monitoring programs to help drivers save money.
