31% Car Insurance Spike Expected In IL For 2024

ILLINOIS — Car insurance rates in Illinois are projected to see a 31 percent annual increase in 2024, with the average cost per year for coverage topping out at $2,181, according to a recent analysis by Insurify.

The state has already experienced a 46 percent year-over-year jump, from $1,356 in June 2023 to $1,981 in June 2024, according to the insurance website, which cited climate change, increased car thefts and new legislation as reasons rates are going up nationwide.

Nationally, Insurify projected that car insurance rates will increase 22 percent in 2024, less than the 24 percent spike they saw in 2023. As of June, the average annual cost for full coverage was $2,329, but it is expected to end the year at $2,469.

“Insurers implemented higher rate increases to account for changes in the frequency and severity of auto losses,” said Betsy Stella, vice president of carrier management and operations at Insurify, according to the website.

“The COVID-19 pandemic and following inflation, especially in the price of vehicle maintenance and repairs, along with changes in driving behaviors, led to new loss trends that increased the difficulty of rate setting.”

Maintenance and repairs cost almost 38 percent more than they did five years ago, according to Insurify, citing the U.S. Burea of Labor Statistics.