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Tuesday, 28 September 2021 16:31

GEICO to Significantly Hike Auto Insurance Rates in Illinois

Written by Lyle Adriano, Insurance Business

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GEICO is set to raise auto insurance rates in Illinois by more than 6% on average---one of its highest rate increases in the state in the last six years.

It was noted GEICO had also attempted to raise rates in Connecticut, but the plan fell through.

 

Speaking to local news station WTTW News, Crain’s Chicago Business reporter Danny Ecker explained other states have insurance regulatory bodies that can reject insurers’ rate increases.

 

“We don’t have that here in Illinois,” said Ecker, adding those other state regulators who rejected GEICO’s hikes said the company had a “huge windfall” in 2020---a time when people were driving less and making fewer claims.

 

“And yet GEICO didn’t discount their rates, while others like State FarmAllstate and Progressive did,” the reporter added.

 

GEICO’s auto insurance policyholders in Illinois will be looking at rather steep premium increases later this year.

 

“GEICO auto insurance customers [in Illinois] should expect, on average, an increase of $100 per year, per car. Which obviously doesn’t look great when you have a company that markets itself as a money-saving alternative to the other big insurers,” Ecker said.

 

The rate increases come into effect this December.

 

We thank Insurance Business for reprint permission.