South Cook News

The insurance marketplace in Illinois has traditionally been one of the most competitive in the country, and chances are good that the average Illinois resident is paying lower monthly premiums for most types of insurance than the national averages. There are a number of personal factors, including age, involved in determining insurance premiums and rates, but there are also factors such as population density, weather conditions, crime statistics, and claim data where an individual resides. 

The most competitive of the insurance marketplace in Illinois is car insurance. Some people may not own a home or have life insurance, for example, but they are likely to own at least one car. Age and driving history have a large impact on how much an individual pays for car insurance in Illinois. Car insurance is very expensive for younger drivers, but as drivers get to age 30 those rates can be significantly cheaper. 

Rates can creep back up for drivers over age 70, and for those with recent accident history or a DUI the figures also will be higher. There are varying statistics of how Illinois stacks up against other states in terms of car insurance rates, with one study putting Illinois at 37 percent lower than the national average.  However, rates have been on the rise recently, so insured drivers need to stay vigilant and shop for competitive rates when necessary. 

“Illinois residents benefit from our ultra-competitive insurance marketplace,” stated Rep. John Egofske (R-Lemont). “Maintaining a competitive, vibrant marketplace serves consumers well and every priority should be placed on preserving competition.”

Insurance rates in other categorical marketplaces are also very competitive. The average cost of homeowners insurance in Illinois is $1,720 per year, or roughly $143 a month, for a $300,000 home. That is a little less than the national average of $1,754 per year. 

Health insurance rates in Illinois are right at the national average of $560 per month. For a 40-year-old, the average cost is $533 per month, which represents a four percent increase from 2022. The actual cost of a health insurance plan in Illinois is based on an individual’s age and the ages of family members covered by the policy. For example, a 21-year-old’s average rate would be 22 percent cheaper than a 40-year-old’s rate, with a 60-year-old paying 112 percent higher rates than 40-year-olds. 

For life insurance, lifestyle, health, and state regulations all have an impact on available policies and rates. Other factors include age and the length and benefit amount of the policy. Women are known to have a longer lifespan than men, so therefore they pay lower rates for life insurance. One of the best strategies for saving on the cost of life insurance is buying a policy at a young age.  Illinois ranks near the middle of the pack overall in average life insurance rates. 

“While residents benefit from a competitive market, consumers should check regularly if they are saving money as life circumstances change,” stated Rep. Travis Weaver (R-Edwards). “Switching plans or types of coverage occasionally can help to retain access and affordability.”