Illinois drivers see auto insurance rates skyrocket; what you can do to save

CHICAGO (WLS) -- If your auto insurance rate has skyrocketed, you're not alone.

The ABC7 I-Team has received calls from several consumers whose policies have gone up hundreds of dollars, and they're not happy.

While prices for gas and groceries finally seem to be leveling out, many drivers were angry to see their insurance premiums soar, seemingly overnight.

Chicago driver Ralph Jones was shocked at the costs when it was time to renew his auto insurance policy with Liberty Mutual.

Last June, he paid $897 to insure his two vehicles for 6 months. This past December, he said his premium spiked to $1298.50 for six months. That is a $400 increase.

"I feel like you're punishing me for being a good driver," Jones said. "I haven't gotten any tickets. I haven't been in an accident and I'm a senior citizen."

He said his policy normally increases by about $50 or $60 bucks, but he's never seen anything like this.

"So why is my rate going up so much?" Jones said.

Kevin Brasler, Executive Editor of Chicago Consumer's Checkbook, said drivers across the Illinois are experiencing sticker shock.

"A lot of drivers are seeing that when they renew their policies, their rates are going up by 20% or more," Brasler said. "In some cases, we're hearing from people who are paying $800 more for auto insurance.

Brasler said one big reason for the increase is that it's more expensive for insurance companies to settle claims than in years past.

"The cost of replacement parts are more expensive," Brasler said. "The cost of labor for auto body work is a lot higher and also insurance are seeing a lot more claims now than we used to. We're all moving around and traveling more than we were in the pandemic, and therefore rates are going up to account for higher costs for the insurers side."

But for Jones, who said he has a clean driving record, he can't help but think, "what does that have to do with me?"

Brasler said there's currently no law in Illinois that protects drivers from steep auto insurance hikes.

"A big problem with auto insurance these days, and homeowner's insurance too, is that the rates we pay often have nothing to do with how safe of a driver you are," Brasler said. "A lot of people, if you've had no tickets or accidents, are still paying higher rates."

So what can you do as a consumer?

First, don't feel like you have to be loyal to your auto insurer. Shop around at least every three years.

"We found that most drivers, just by shopping around, can save $500 a year off their auto insurance, and many will save $1500 a year for multiple cars just because insurance companies charge drastically difference insurance prices," Brasler said.

You don't have to wait until your renewal date comes around to start looking elsewhere.

"A lot of people say, 'oh, I just renewed, so I'm going to wait a few months to deal with this,'" Brasler said. "You don't need to wait. If you cancel with your current company after signing on with a new company, your old companies has to refund you any prepaid share of your insurance that you didn't use."

As for Jones, he said he can't afford another hit like this one, and he may have to look for auto insurance elsewhere.

Liberty Mutual told ABC7 most auto insurance customers nationwide are experiencing higher premiums, largely because of inflationary increases in labor rates and repairs, used car rates and medical costs.

To cut down on costs, you can try paying your full bill instead of installments, typically a bit cheaper.

Statement from Liberty Mutual Insurance:

While we cannot speak specifically to an individual customer's policy details, most auto insurance consumers countrywide are experiencing higher premiums. This is largely due to a significant rise in claims severity, driven largely by sharp inflationary increases in labor rates, and repair, used car and medical costs. For an industry perspective on rising insurance costs you might want to reach out to the American Property Casualty Insurance Association (APCIA).

Statement from Illinois Department of Insurance:

The Department agrees that authority to approve auto insurance rates would be a helpful regulatory tool. Currently in Illinois, companies must file auto insurance rates, but rates do not require prior approval before implementation.

The Department stands ready to partner with consumer advocates and legislators to increase consumer protections and enhance the Department's regulatory authority regarding auto insurance rates. We continue to diligently enforce all applicable insurance laws to protect Illinois consumers' rights as set forth by the General Assembly.

If a consumer believes that the insurance company is not honoring the terms of their auto insurance policy, we encourage them to file a complaint. Consumer complaints should be submitted through our website at idoi.illinois.gov. Click on "How to File a Complaint." We have instructions to walk consumers through the complaint process and track the status of complaints. Consumers can also call our Consumer Assistance line at (866) 445-5364 at any time for guidance.