Insurance premiums could jump another 10% before year's end

(The Center Square) – Vehicle owners in Illinois can expect to pay even more for insurance before the end of this year.

An insurance quotes comparison platform released a report that projects a total increase of 31% in auto insurance premiums in Illinois this year.

Chase Gardner is the data insights manager for Insurify.

“In Illinois, we’ve seen rates go up already 21% this year through August. The average cost of a policy for full coverage just broke $2,000 a year there,” Gardner said.

Gardner said that Insurify estimates that rates will rise another 10% before Jan. 1, 2025.

Illinois State Sen. Craig Wilcox said proposals by Illinois Democrats would push rates even higher, if insurance agencies could no longer check credit scores or zip codes.

“If you want to talk about being penalized for absolutely having been a responsible citizen for a while, that would be devastating to just about everybody in Illinois’ premium rates,” Wilcox said.

Earlier this year, Illinois State Rep. Will Guzzardi proposed House Bill 4767, which would force insurance companies to apply for state approval to change rates.

Illinois Secretary of State Alexi Giannoulias supported the measure, saying it would give the state Department of Insurance broad authority to regulate rate hikes.

State Rep. Jeff Keicher opposed the legislation, saying that insurance companies do not consider race, national origin, or religion when setting rates.

Insurify found that full-coverage auto premiums have increased 15% nationwide and 21% in Illinois so far this year.

The digital insurance platform lists inflation, crime and weather as factors for the surging costs.

Gardner cited inflation first.

“It’s actually been even worse for vehicle maintenance and repair costs. Those are up almost 40% over the last five years,” Gardner said.

Gardner cited crime as a factor in cities. He also mentioned increasing severe weather risks in Illinois.

“Hail in particular has just increased as a proportion of all car insurance claims that are being made. It can definitely be a serious factor in Illinois,” Gardner said.

Sen. Wilcox said inflation is a big part of the problem, and so is the significant increase in car thefts and carjackings.

“Just the perceived risk of having a car in Illinois and certainly in and around the Chicago area has insurers trying to cover their risk, and that comes on everybody. That definitely makes it a challenge,” Wilcox said.