In a market where rising costs have become the norm, Illinois drivers are about to receive some positive news regarding their auto insurance. Auto Club Insurance Association, a part of the AAA family, is implementing a notable rate decrease across the state.
This news is a breath of fresh air for those searching for cheap car insurance in Illinois, as well as a signal for all consumers to review their policies and explore their options.
What’s Happening?
Effective for renewal business starting July 1, 2025, Auto Club Insurance Association will be decreasing its auto insurance rates by an average of 4.9%. This represents a collective savings of over $3.5 million for its members in the Land of Lincoln– or $54 per policyholder.
While this is excellent news for those insured with AAA, it also serves as a crucial call to action for every single driver in Illinois. Now is the time to be proactive and ensure you’re getting the most competitive rate available.
Shop now and save!
Why Do Car Insurance Rates Change?
To understand the significance of a rate decrease, it’s helpful to know why rates typically trend upward. Insurance companies set their prices based on the anticipated cost of paying for future claims. When their data shows that those future costs are likely to rise, they adjust premiums accordingly.
- Inflation and Repair Costs: Modern vehicles are technological marvels, equipped with complex sensors, cameras, and computers that keep us safe. However, this technology makes repairs far more expensive. The rising cost of parts—from bumpers to microchips—along with increased labor wages for skilled technicians, directly inflates the cost of the average claim.
- Medical Expenses: When accidents result in injury, auto policies cover the associated medical bills. As the cost of healthcare, from emergency services to physical therapy, continues to climb, the potential payout for an injury claim rises with it.
- Accident Trends and Severity: Insurers closely analyze accident data in specific regions. If an area experiences more frequent or more severe crashes, often due to factors like increased traffic congestion or distracted driving, rates for everyone in that area can be affected, regardless of their personal driving record.
- Severe Weather: Illinois is no stranger to destructive weather, including tornadoes, hailstorms, and blizzards. A single major storm can cause widespread vehicle damage, leading to a surge in comprehensive claims and impacting an insurer’s financial outlook.
Given these persistent pressures, a rate decrease from Auto Club Insurance Association suggests positive local trends, such as improved driving safety among its members, lower-than-expected claim filings in Illinois, or successful internal efficiencies being passed on to customers.
Your Next Steps: How to Respond to This News
Whether you’re a AAA member or insured with another company, this rate change is your opportunity to take control of your auto insurance costs. Here’s a clear plan of action.
If You Are an Auto Club (AAA) Member:
Your first instinct might be to sit back and wait for the savings. To be truly savvy, however, you should take a more hands-on approach.
- Review Your Renewal Documents Carefully: The -4.9% is an average. Your specific premium change will depend on your individual circumstances. When you receive your renewal offer, examine it closely to see how your rate was affected.
- Use the Savings to Improve Your Coverage: If your premium is going down, consider it found money. This is the perfect time to strengthen your financial safety net. Could you use those savings to lower your collision deductible from $1,000 to $500? Or perhaps increase your liability coverage to better protect your assets in a major accident? You can potentially make these vital improvements without increasing your annual cost.
- Confirm Your Discounts: Use this as your annual reminder to call your agent and ensure all eligible discounts are applied. Have you started working from home more? Is there a good student on your policy? Every discount helps.
- Still Shop Around: Even with a lower rate, it is wise to get quotes from other insurers. Use your new, lower AAA premium as the “price to beat.” This ensures you are truly getting the best value the market has to offer.
If You Are Insured with Another Company:
This news is just as important for you. It’s a clear signal that the market is competitive.
- Contact Your Current Insurer: Call your agent or company and use this news as leverage. A simple script works wonders: “I’m a loyal customer and I see that a major competitor, AAA, is lowering its auto insurance rates in Illinois. I would prefer to stay with you, so I’d like you to review my policy to ensure I have the most competitive rate you can offer.”
- Make This Your Catalyst to Shop: If your current insurer can’t or won’t adjust your premium, it is officially time to get quotes from other carriers. The search for “cheap car insurance in IL” is most fruitful when you compare multiple options. Get quotes from Auto Club Insurance Association to see if their new rates would benefit you, as well as from other leading national and regional companies.
Locking in the Best Deal
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