Why Are Home and Auto Insurance Rates Increasing in Illinois?
If you’ve recently opened your renewal and noticed your home or auto insurance premium went up—you’re not alone. Customers all across southern Illinois and the Midwest are asking the same question: Why does my insurance cost more this year, even if I haven’t filed a claim?
Here’s what’s driving these rate hikes and what you can do to protect your wallet.
1. Inflation Is Hitting the Insurance Industry Too
Just like groceries, gas, and building materials—insurance costs are going up because everything else is going up.
- Auto repairs cost more due to rising labor and parts prices.
- Home repair costs have jumped due to lumber, roofing materials, and contractor demand.
- Even used car values have skyrocketed, which increases the cost to replace vehicles after a total loss.
2. More Severe Weather in Illinois
Southern Illinois has seen its fair share of hailstorms, wind events, and flash flooding. Carriers track these regional events, and when claims spike across an area, rates often increase across the board—even for clients who haven’t filed a claim.
(Photo by AP news)
That’s why you might see your wind/hail deductible go up, or even have a separate deductible just for storm-related claims.
3. Lawsuits and Legal System Abuse
Did you know Illinois ranks high on the list of states with excessive lawsuit activity? It’s true—and it directly affects your premium.
- Illinois has been called a “judicial hellhole” by the American Tort Reform Association.
- Nuclear verdicts (multi-million-dollar lawsuits) in auto and liability cases are on the rise.
- Legal advertising encouraging people to sue insurance companies or file exaggerated claims is increasing.
All of this creates what’s called loss cost pressure—and insurers pass that cost down to policyholders.
4. Reinsurance Costs Are Climbing
Insurance companies don’t carry all the risk themselves—they buy reinsurance to protect their financial stability. When disasters happen around the world (like hurricanes, wildfires, or global catastrophes), the cost of reinsurance spikes. That trickles down to local carriers and, ultimately, you.
5. Insurance Fraud and Exaggerated Claims
Fraud costs the industry billions each year. Even minor exaggerations on a claim can cause ripple effects that inflate everyone’s premiums. Carriers are now investing in tools to catch fraud earlier—but those investments come at a cost.
What You Can Do
- Review your deductibles and understand what they mean. Sometimes a higher deductible can lower your premium.
- Bundle your home and auto—you’ll often get a significant discount.
- Ask your agent about discounts you may be missing, like safe driver programs or home safety features.
- Download your insurance app for easier access to your policy, ID cards, and claims help.
Final Thought
Rising insurance premiums aren’t just about you—they’re the result of a complicated web of economic, legal, and environmental factors. At Eclipse Insurance Agency, we stay ahead of these trends so we can help you find the best possible coverage for your situation.
We’re proud to serve Southern Illinois with a team that knows the landscape—and fights to protect your home, your farm, and your family.
Want us to review your coverage?
Contact us today or download our app to get started.
