Car insurance premiums

How to Save Money on your Car Insurance Premiums?

Car insurance premiums have climbed across Illinois and nationwide, resulting from a range of factors including the rising cost of vehicle repairs and/or replacements, an increased number of car thefts, and more frequent extreme weather events. Much of the increase can be tied to the additional tech that fills newer cars. Tariffs are also raising the cost of replacement parts. According to a 2024 Consumer Reports survey of 40,566 auto insurance policyholders nationwide, 60% said their premiums had increased over the past year.

While the average cost of Car insurance premiums across Chicago land has increased over the past few years, all companies have not raised their rates equally. We have seen an unusually large variation in prices from one carrier to the next. Many of the carriers who are now taking the larger rate hikes are companies that did not fully understand the Chicago auto insurance market. They might have significant experience in other states, or other lines of coverage. They could have placed too much confidence in an algorithm rather than trust the judgment of top managers and underwriters. We have seen some private equity companies buy out local insurance carriers, replace key employees that have decades of experience in the Chicago market, with tech wizards. Initially their math seemed okay, but when conditions changed and claims increased, they found they had taken too much risk.

Beyond the total level of risk they assumed, they failed to properly surcharge for vehicles and/or drivers who would end up costing them the largest percentage of their total losses. When the losses started coming in, they tended to raise rates across the board rather than target only the true sources of the problems. This is why it’s a perfect time to shop for car insurance.

Looking to lower your Car insurance premiums in Chicago?

Urban Insurance works with 20 different insurance companies, allowing us to shop around and find you the most competitive rates in Illinois and Indiana. Whether you’re in Chicago or the suburbs, you’ll speak directly with a licensed agent who takes the time to understand your needs and match you with the most affordable policy—without sacrificing coverage.