For Illinois drivers, keeping a handle on insurance costs is a constant priority. In a state where traffic and weather can be unpredictable, a reliable and affordable policy is essential. Unfortunately for some drivers in the Prairie State, rising costs are on the horizon.
Safeway Insurance was recently approved to increase its auto insurance premiums by 5%. This change will impact policies renewing on or after October 1, 2025. It’s set to increase total written premiums by over $1.6 million across the state, translating to an average increase of $58 per policyholder. While this change might seem small on its own, it’s a good reminder to be proactive about managing your insurance policy costs.
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Understanding the Factors Behind Premium Increases
It’s common to wonder why insurance rates go up, especially when you haven’t had any accidents or claims yourself. The simple answer is that insurance companies must adjust their prices to reflect the current costs of covering risk. When the cost of everything from car parts to medical care increases, so too does the cost of paying out a claim.
Here are some of the key factors that lead to rate adjustments:
- Inflation: This is a big one. As the general cost of goods and services rises, so does the cost of repairing vehicles and providing medical care after an accident. A new bumper or a hospital visit today costs more than it did a few years ago, and insurers must account for that.
- Accident Frequency and Severity: If there are more accidents on the road, or if the accidents that occur are more severe, insurance companies will face a greater number of expensive claims. Factors like increased driving, distracted driving, and even poor road conditions in some areas can contribute to this.
- Technology in Vehicles: Modern cars are equipped with advanced sensors, cameras, and computer systems that improve safety, but they are also very expensive to repair or replace after a collision. A small fender-bender can suddenly become a major repair bill, driving up insurance costs.
- Weather-Related Claims: Illinois, like many states, experiences a variety of severe weather events, from snow and ice storms to powerful thunderstorms and tornadoes. These events can lead to a surge in claims for hail damage, flood damage, and other weather-related incidents.
- Location-Specific Trends: Insurers analyze data at a very granular level. A rate increase in one state or even one city may be a reflection of local trends, such as an increase in car thefts, vandalism, or a higher volume of traffic accidents in that specific area.
These adjustments are not meant to penalize customers but are a necessary part of how insurers manage risk and maintain their ability to pay claims for all their policyholders.
Your Guide to Saving on Car Insurance in Illinois
An insurance rate increase, no matter how small, is the perfect time to take a closer look at your policy and see where you can save. You have more power than you might think when it comes to lowering your car insurance costs. Here are some actionable steps you can take to find affordable car insurance in Illinois.
1. Shop Around for New Quotes
Don’t assume your current insurer is still giving you the best deal. Use the news of this rate adjustment as a prompt to get quotes from multiple providers. A different company might have a more competitive rate for your specific driver profile and location. You can do this easily online, like with Auto Quote Tracker’s intelligent shopping tool.
2. Re-evaluate Your Coverage
Take some time to review your current policy and make sure you’re not overpaying for coverage you no longer need. If you have an older car that is paid off, for example, you might consider adjusting your collision and comprehensive coverage. Alternatively, increasing your deductible can significantly lower your premium. Just be sure you have enough savings to cover the higher deductible if you ever need to file a claim.
3. Ask About Discounts
Discounts are a key way to reduce your premium, and many drivers aren’t taking advantage of all the ones they qualify for. Call your insurer and ask for a complete list of their available discounts. Common ones to look for include:
- Multi-Policy Discount: Bundling your auto and home or renters insurance with the same company.
- Good Student Discount: For young drivers who maintain a certain GPA.
- Safe Driver Discount: For having a clean driving record with no accidents or violations.
- Vehicle Safety Features: Discounts for cars equipped with safety features like anti-lock brakes, anti-theft devices, or advanced driver-assistance systems.
- Low-Mileage Discount: If you don’t drive your vehicle very often.
- Telematics Programs: Many companies offer programs that use an app or device to track your driving habits and offer a discount for safe driving.
4. Improve Your Credit Score
In Illinois, your credit-based insurance score is a factor in determining your premium. A good credit score can often be a sign of financial responsibility to insurers, which can lead to a lower rate. Paying your bills on time and managing your debt effectively can improve your credit score over time, which may help you save on car insurance.
5. Consider Your Vehicle Choice
The type of car you drive has a major impact on your insurance rate. Insurers look at a vehicle’s safety ratings, repair costs, and likelihood of being stolen. A car that is less expensive to repair, has a good safety record, and is not a high target for theft will likely have a lower insurance premium.
Start Saving on Auto Coverage
As the cost of car insurance in the US continues to rise, minimizing your premiums is increasingly essential. But with most policies only spanning 6-12 months, the best option now may not be the best one in the future. That’s why you need to stay on top of upcoming rate changes.
Auto Quote Tracker delivers timely alerts directly to your inbox when your rates are set to change. Sign up today for free!
