Skip to main content

Top 4 Ways To Offset Rising Auto Insurance Rates

Livery Insurance - Close-up Portrait of a Woman Driver of a Car Service Smiling at the Camera

Several major insurance companies have recently announced multiple rate hikes for auto insurance in Illinois in 2022; citing inflation, supply chain disruptions, driving habit changes and labor shortages as underlying factors. Geico raised rates by 6% in May and just recently announced an upcoming 34% rate hike! State Farm has increased rates by 4.5% in March, 3% in June and a new announcement of an 8.5% increase coming in September. Allstate also had a 12% rate increase earlier this year.

On the heels of these announcements, we’re laying out a few methods to help you reduce your premiums while remaining adequetely protected. 

  1. Review your current policy – Reviewing your policy with your agent and knowing your coverage limits, deductibles, discounts and premium can help you learn more about your policy. Reviewing your prior renewal could also help pinpoint the reason for a premium increase. Maybe a coverage changed, a discount was mistakenly removed or your driving habits were incorrectly recorded. 
  2. Review discounts – Discounts are one of the best ways to lower your premium. Reviewing your current discounts and inquiring with your agent about possible additional discounts can have a big impact on your rates. Most insurance companies now have a telematics discount, which rewards you for safe driving and actual mileage driven. Some companies will even have discounts depending on your occupation or affiliation with a group. Digital policy and paperless discounts are also being offered by many carriers now. 
  3. Shop for a new carrier – Comparison shopping is crucial to determine if your rates are indicative of the current market. Most car insurance companies offer the same types of coverage but each company has its own rules, rating method, discounts and policy options. Getting quotes from several carriers might help you find a lower rate and a policy that fits your needs better. You may even benefit from an advanced quote/purchase discount, which some carriers offer if you quote and purchase your policy about 1-2 weeks before your renewal.
  4. Bundle your policies – Bundling your auto, home/condo/renters, umbrella and life insurance policies with one carrier will help you save money all around. Insurance companies offer steep discounts for combining all of your policies together.

If you’ve been impacted by increased rates on your auto or home, contact Smith Insurance Group Chicago. We can help you shop your rates with numerous insurance companies and help review your policies to find you the best rates.