If you feel like your auto insurance bill has gone up, you’re not imagining things. Rising auto insurance rates are continuing to affect people across the United States, including in Illinois. The good news is that after increasing sharply in recent years, rates finally appear to be moderating in 2025. However, costs remain significantly higher than just a few years ago, bringing little comfort to people’s pocketbooks. Here’s what’s driving the increases and what you can do to save money.
First, the basics. Insurance rates typically go up for several reasons, including a person’s driving record (Gotten any tickets lately? Caused any fender benders?) and claims history (Tree branch hit your car?). Some additional considerations are age (younger people pay more because they get into more accidents); the type of car you drive, and how much it costs to repair your car; and annual mileage. But there are some other big factors that have had outsized influence on insurance rates over the past several years. Let’s take a look.
Rates have been climbing
According to the U.S. Bureau of Labor Statistics, auto insurance rates were 19.5% higher in June 2024 compared to June 2023. And while these increases appear to be moderating this year, rates nevertheless are continuing to rise. Recent BLS data show an increase of 6% in auto insurance rates from April 2024 to April 2025. But let’s not forget the new tariffs. The impact of tariffs on imported vehicles and car parts will undoubtedly have an effect moving forward, which, experts predict, will lead to higher auto insurance rates. Even if the rate of increase is lower for this year, a moderate increase on top of previous hikes can still feel like a financial squeeze.
What’s behind the rising auto insurance rates
While the reasons for rate increases vary from state to state and town to town, some overall trends stand out. Here are several factors fueling the ongoing pattern of rising auto insurance rates:
1. Higher repair and replacement costs: Thanks to inflation, the prices of vehicle parts and repair labor have risen sharply. Newer vehicles equipped with advanced sensors and technology are more expensive to fix, further driving up insurance claims.
Additionally, the new 25% tariffs on imported vehicles and parts will significantly impact costs to repair and replace auto parts as well as the cost to purchase new vehicles. The tariffs are also projected to drive up the cost of used vehicles, as demand rises. Industry analysts warn that the tariffs could increase claims costs significantly, pushing rates even higher in late 2025 and 2026.
2. Riskier driving habits and more severe claims: Drivers are engaging in riskier behavior, such as speeding and distracted driving. Fatalities and severe accidents have increased, leading to more frequent and more expensive insurance claims. On top of that, accidents are becoming more costly due to rising medical expenses and an increase in legal and settlement payouts.
3. Extreme weather events: Comprehensive claims — which cover damages from events like storms, flooding, theft, and vandalism — are up, partly due to climate change and more frequent severe weather. Due to these weather events and many of the factors spelled out above, many insurance companies have paid out more in claims than they took in through premiums. That means rates go up.
How to save on auto insurance
While you may not be able to avoid rate hikes altogether, there are ways to reduce your premium.
- Review your policy: The first step is to consult your Bradish insurance agent to review your policy. Your needs may have changed. Maybe your child has gone away to college and is not taking their car. Perhaps you now work at home and drive much less. You could qualify for one or more discounts. Changing circumstances often require different types and amounts of insurance coverage. Your Bradish agent can guide you to find the best insurance options for your particular situation and needs.
- Shop around: Most experts advise consumers to seek rate comparisons once per year. Your Bradish agent can compare rates from multiple insurers.
- Bundle policies: Many companies offer discounts if you combine auto and home insurance.
- Increase your deductible: A higher deductible can lower your monthly premium — just make sure you can afford the out-of-pocket cost if needed.
- Use telematics: Programs that monitor your driving habits can help you earn discounts for safe behavior. Learn more about safe-driver programs.
- Avoid monthly fees: Paying your premium in full can help you avoid extra installment charges.
- Maintain a clean driving record: Speeding tickets and at-fault accidents can increase your rate by 50% or more. Keep driving safely!
Yes, auto insurance rates are rising — but understanding why can help you take steps to manage the impact. With some proactive strategies, you may be able to keep your costs in check even as the broader market continues to fluctuate. Your Bradish agent can help you find smarter coverage and better value for your money.
By Kris A. Mainellis
