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 that 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 that other states have insurance regulatory bodies that can reject insurers’ rate increases.
“We don’t have that here in Illinois,” said Ecker, adding that those other state regulators who rejected GEICO’s hikes said that the company had a “huge windfall” in 2020 – a time when people were driving less and making fewer claims.
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 prefaced.
The rate increases come into effect this December.