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 by hundreds of dollars and they’re not happy.
While gas and grocery prices appear to have finally leveled off, many drivers were angered to see their insurance premiums jump seemingly overnight.
Chicago driver Ralph Jones was shocked at the cost when it came time to renew his auto insurance policy with Liberty Mutual.
Last June he paid $897 to insure his two vehicles for 6 months. Last December, he said his premium jumped to $1,298.50 in six months. That’s an increase of $400.
“I feel like you’re punishing me for being a good driver,” Jones said. “I have not received any tickets. I have not been in an accident and I am a senior citizen.”
He said his policy usually goes up about $50 or $60 dollars, but he’s never seen anything like this.
“So why is my interest rate going up so much?” Jones said.
Kevin Brassler, executive editor of the Chicago Consumer’s Checkbook, said Illinois drivers are experiencing sticker shock.
“Many drivers see that when they renew their policies, their rates go up 20 percent or more,” Brassler said. “In some cases, we hear from people who are paying $800 more for car insurance.
Brassler said one big reason for the increase is that it is more expensive for insurance companies to settle claims than in years past.
“The cost of replacement parts is more expensive,” Brassler said. “Labour costs for auto body jobs are much higher and also insurance is seeing a lot more claims now than before. We are all moving and traveling more than we were during the pandemic, and therefore rates are rising to account for the higher costs to the insurer side.”
But for Jones, who said he has a clean driving record, he can’t help but think, “what does this have to do with me?”
Brasler said there is currently no law in Illinois that protects drivers from auto insurance spikes.
“A big problem with auto insurance today, as well as homeowner’s insurance, is that the rates we pay often have nothing to do with how safe you are as a driver,” Brassler said. “A lot of people, if you haven’t had any tickets or accidents, are still paying higher rates.”
So what can you do as a user?
First, don’t feel like you have to be loyal to your auto insurer. Shop at least every three years.
“We’ve found that most drivers, just by shopping around, can save $500 a year on their car insurance, and many will save $1,500 a year on multiple cars, just because insurance companies charge dramatically different insurance rates,” Brassler said.
You don’t have to wait for your renewal date to arrive to start looking elsewhere.
“A lot of people are like, ‘oh, I just renewed, so I’m going to wait a few months to deal with it,'” Brasler said. “You don’t have to wait. If you leave your current company after you’ve signed up with a new company, your old companies must refund any prepaid portion of your insurance that you haven’t used.’
As for Jones, he said he can’t afford another hit like this and may have to look elsewhere for auto insurance.
Liberty Mutual told ABC7 that most auto insurance customers across the country are experiencing higher premiums, largely due to inflationary increases in labor and repair rates, used car rates and medical costs.
To keep costs down, you can try paying your bill in full instead of in installments, usually a bit cheaper.
Statement from Liberty Mutual Insurance:
While we can’t speak specifically to the details of an individual customer’s policy, most car insurance consumers across the country have higher premiums. This is largely due to a significant increase in the burden of claims, driven in large part by the sharp inflationary increase in labor rates and the cost of repairs, used cars and medical costs. For an industry perspective on rising insurance costs, you may want to contact the Property Casualty Insurance Association of America (APCIA).
A statement from the Illinois Department of Insurance:
The Department agrees that the power to approve motor insurance rates would be a useful regulatory tool. Currently, in Illinois, companies must submit auto insurance rates, but the rates do not require pre-approval before implementation.
The Department stands ready to partner with consumer advocates and legislators to increase consumer protections and strengthen the Department’s regulatory authority over auto insurance pricing. We continue to diligently enforce all applicable insurance laws to protect the rights of Illinois consumers as enacted by the General Assembly.
If a consumer feels that the insurance company is not honoring the terms of their car 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 guide users through the complaint process and track the status of complaints. Consumers may also call our Consumer Helpline at (866) 445-5364 at any time for guidance.
Copyright © 2024 WLS-TV. All rights reserved.
