Why Are Illinois Insurance Premiums Skyrocketing? Your Guide to Saving Money in a Tough Market

Ethan Jaeger

Aug 29 2025 15:00

If you're an Illinois homeowner or driver, you've likely felt the sting of rising insurance premiums. Across the state, consumers are grappling with significant rate hikes, and it's leaving many wondering: what's going on, and what can I do about it?

 

As a trusted insurance agency serving the Illinois community, we're here to provide some clarity. The reasons behind these increases are complex, but understanding them is the first step toward taking control of your insurance costs.

 

The Causes Behind the Rate Hikes

 

The simple answer is that insurance companies are paying out more in claims than ever before. This is especially true for property insurance, but it also impacts auto premiums. Here's a closer look at the key factors:

  • Extreme Weather Events: Illinois has experienced a dramatic increase in severe weather. From tornados and destructive hail storms to derechos, these events are becoming more frequent and more costly. In 2024 alone, Illinois had more hail damage claims than any state except Texas. Insurers must raise rates to cover these massive, "catastrophe" losses.

  • Inflation and Supply Chain Issues: The cost to rebuild or repair a home has soared. The price of building materials, labor, and new cars has been driven up by inflation and persistent supply chain challenges. A roof replacement or car repair that cost a certain amount a few years ago is now significantly more expensive, and insurance premiums must reflect that increased cost.

  • A Unique Regulatory Environment: Unlike many other states, Illinois does not have a "prior approval" system for insurance rates. This means insurance companies can implement rate hikes without first getting approval from the state's Department of Insurance. While consumer advocates are pushing for more oversight, for now, the market is largely self-regulated. This can lead to rapid and significant price increases, as we've seen recently with some major carriers.

 

Practical, Actionable Tips to Lower Your Insurance Costs

 

The good news is you are not powerless. As an insurance consumer in Illinois, there are several effective strategies you can use to combat rising premiums. Here are some of the best ways to save money, starting today:

  1. Bundle Your Policies: This is often the single biggest way to save money. By purchasing your home and auto insurance in Illinois from the same company, you can qualify for a "multi-policy" discount, which can be as much as 10-25% off each policy.

  2. Shop Around, Every Year: Your loyalty to a single company may be costing you. Rates can differ wildly between providers, and a company that was the cheapest last year might not be this year. As an independent agency, we have access to multiple carriers, and we do the shopping for you to ensure you're getting the best rates.

  3. Increase Your Deductibles: A deductible is the amount you pay out-of-pocket before your insurance kicks in. By raising your deductible, you take on more of the financial risk, and your insurance company rewards you with a lower premium. Just be sure you can comfortably afford your new deductible if you need to file a claim.

  4. Ask for Discounts (You Might Be Surprised!): Insurance companies offer a wide range of discounts you might not even know about. Beyond bundling, ask about:

    • Home-specific discounts: For a new roof, security systems, fire alarms, or updated plumbing and electrical systems.

    • Auto-specific discounts: For safe driving, being a good student (for young drivers), or a low annual mileage discount if you work from home.

  5. Maintain a Good Credit History: In Illinois, most insurance companies use a credit-based insurance score to help determine your premium. Statistics show a strong correlation between good credit and fewer insurance claims. By keeping your credit score healthy, you can often secure a better rate.

  6. Review Your Coverage Annually: Life changes, and your insurance needs do too. Have you paid off your car loan? You may no longer need comprehensive or collision coverage. Did you make home improvements? Let your agent know so your policy can be updated. A yearly review ensures you're not overpaying for coverage you no longer need.

Don't let rising premiums catch you off guard. By being an informed consumer and working with a knowledgeable agent, you can protect your assets without breaking the bank.

 

Six Corners Insurance is here to help. Contact us today for a free, no-obligation policy review. We'll analyze your current coverage and shop our network of top-rated carriers to find you a comprehensive plan at the most competitive price.