Why are car insurance rates spiking in Illinois?
In Illinois, there are 5 car insurance companies that are holding 62% of the market. And, whether agreed or not, they have raised their rates by over 500 million USD in the first half of 2023, shows a study by the PIRG.
The possibility of raising the car insurance rates, like any other insurance, is a legal one and the inflation of the last years forces companies to raise their prices to survive.
However, this excessive rise has raised concern with the state, as many car owners are not able to pay their premiums anymore.
When drivers are driving uninsured, when accidents happen there are a lot more economic ramifications that come into play, that could cause people and the state a lot more money.
Why are these spikes in car insurance prices a problem?
As shown in the proposed legislation, HB 2203, one of the problems is that car insurance companies use non-driving factors like credit scores and zip codes and education level to determine the height of the personal car insurance premium.
These, of course, should have nothing to do with this and should therefore be banned altogether, according to the State of Illinois.
Another issue is that in the state of Illinois, it is mandatory to have a car insurance, so when the prices spike, people that are not capable of coping with the rise, will go into debt or have serious financial problems.

How do you avoid being the victim of immense insurance price spikes?
Though some companies hold a lot of power, there are a lot more companies that you can find car insurances from. The first step, when your car insurance premium rises, is to look around at other companies offers.
Often, car companies also try to make you pay for insurance policies you might not need. It is wise to review your policies yearly and decide, whether you want all parts of your policy to stay in use, or perhaps to limit the scope and pay less premium.
Above all, it is important to insure your car with a trustworthy insurer. An accident with your car does not have to be caused by you and it is therefore important to be able to trust your insurer when it comes to it.