Illinois Auto Insurance Rate Increase

What is the Auto Insurance Rate Increase?

The auto insurance rate increase in Illinois is set to take effect on January 1, 2021. This increase was approved by the Illinois Department of Insurance in December 2020. It is the first increase in auto insurance rates in the state since 2012. Under the new law, the minimum auto insurance coverage in Illinois will be increased from $20,000 per person and $40,000 per accident to $30,000 per person and $60,000 per accident. The law also increases the minimum liability coverage for property damage from $15,000 to $25,000. This means that all drivers in Illinois will now have to pay more for their auto insurance.

Why the Auto Insurance Rate Increase?

The main reason for the auto insurance rate increase in Illinois is due to the rising cost of auto insurance claims. According to the Illinois Department of Insurance, the cost of auto claims in the state has risen significantly over the past five years. This is primarily due to an increase in the number of auto accidents in Illinois. As a result, insurers have had to raise their rates to cover the increasing costs associated with providing auto insurance coverage.

Who is Affected by the Auto Insurance Rate Increase?

All drivers in Illinois are affected by the auto insurance rate increase. The new law applies to all drivers regardless of their driving record or credit history. This means that even drivers with a clean driving record and good credit score will be paying more for their auto insurance. It is important to note that the cost of auto insurance in Illinois can vary significantly from one insurer to the next, so it is important to shop around and compare rates before selecting a policy.

How Much Will the Auto Insurance Rate Increase Cost?

The amount of the auto insurance rate increase in Illinois will depend on a number of factors, including the type of coverage you have and the type of vehicle you drive. However, the Illinois Department of Insurance estimates that drivers in Illinois can expect to pay an additional $50 to $100 per year for their auto insurance coverage. This additional cost is in addition to any other increases in auto insurance rates that individual drivers may have experienced in recent years.

What Can You Do to Lower Your Auto Insurance Rates?

There are several steps that drivers in Illinois can take to help lower their auto insurance rates. The first step is to shop around and compare rates from different insurers. Drivers should also consider raising their deductible to reduce their overall premium costs. Additionally, some insurers offer discounts for drivers who take defensive driving courses or have a clean driving record. Finally, drivers should make sure to keep their vehicle well maintained in order to reduce the chances of an accident.

Conclusion

The auto insurance rate increase in Illinois is set to take effect on January 1, 2021. All drivers in the state will be affected by the increase, and they can expect to pay an additional $50 to $100 per year for their auto insurance coverage. Drivers can take steps to help lower their auto insurance rates by shopping around, raising their deductible, and taking defensive driving courses. It is important to compare rates from different insurers before selecting a policy.