American Property Casualty Insurance Association: What's Causing Auto and Homeowners Insurance to Rise in Illinois

CHICAGO, Illinois, Jan. 23 -- The American Property Casualty Insurance Association issued the following news release:

A record number of tornadoes, unusually high home rebuilding and construction costs, record inflation, expensive technology in vehicles, more complex repairs, and more dangerous driving behaviors are having a significant impact on what consumers pay for their auto and homeowners insurance. All indicators suggest that this period of high costs will continue in 2024 and potentially beyond.

"In 2023, there were nine separate events in Illinois that cost over $1 billion each," said Brooke Kelley, assistant vice president, state government affairs for the American Property Casualty Insurance Association (APCIA). "Additionally, there were 1,268 traffic fatalities in 2023. This persistently high number of traffic fatalities highlights the importance of adopting safe driving practices and avoiding speeding, distracted or drowsy driving."

Recent loss trends and rising costs in Illinois have resulted in significantly higher losses than premiums collected. As an example, in 2022, insurers incurred $1.12 in claims costs and expenses for every dollar of premium.

"With losses ballooning and available capital to pay losses contracting, insurers have to make tough decisions regarding what coverage they will offer and the cost of coverage in order to ensure they are able to fulfill their commitments to their policyholders," said Kelley.

Although inflation and Mother Nature are doing their best to keep prices high, there are many things that homeowners can do to control their insurance costs.

"To help make insurance more affordable and available, we must all work together to reduce losses," said Kelley. "The Insurance Institute for Business & Home Safety (IBHS) has developed scientifically proven standards that enable homes and businesses to withstand increasingly severe storms, including specific upgrades that exceed current building codes. Strengthened building codes are critical to improving resilience against natural perils." More homes and communities across Illinois can and should be strengthened to be more resilient, encouraged Kelley.

The ABCs to help reduce insurance premiums, APCIA urges consumers to:

Ask for discounts that may be available. Talk with your agent or insurance company about discounts that may be available for taking actions that may reduce the potential that your property may be damaged.

Bundle your insurance policies by combining policies such as your auto and home insurance with the same company may provide you with a multi-policy discount.

Consider selecting higher deductibles, which allow consumers to increase or decrease their portion of the risk to best meet their needs and budget. Also, be sure to regularly check your roof to make sure it is in good repair.

You may also be able to save by considering a usage-based insurance policy. These telematics programs can help you gain insights into your driving with real-time feedback on when you have accelerated too fast or slammed on the brakes. This feedback allows you to adopt practices that have been proven to reduce the likelihood of a crash.

Always be sure to shop around periodically for the best insurance coverage at the best price.

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The American Property Casualty Insurance Association (APCIA) is the primary national trade association for home, auto, and business insurers. APCIA promotes and protects the viability of private competition for the benefit of consumers and insurers, with a legacy dating back 150 years. APCIA members represent all sizes, structures, and regions--protecting families, communities, and businesses in the U.S. and across the globe.

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Original text here: https://www.apci.org/media/news-releases/release/78638/