GEICOhas successfully forged a reputation for being a cheaper alternative to the other big insurers, but news out of Illinois could alter that perception.
Effective this December, GEICO policyholders in the "Prairie State" will face a significant price increase, with rates going up by more than 6% on average.
This is the highest rate increase from GEICO in Illinois in more than six years, and customers can expect to pay an additional $100 per year, per car, for no additional coverage.
While many insurers are raising rates due to a
surge in reckless driving convictions, GEICO’s Illinois price increases are among the highest in the country.
GEICO raising rates, some states pushing back
GEICO has long marketed itself as a
fun and friendly brand, with customer savings a key part of its advertising. It’s a bit surprising then, that they have decided to push ahead with big rate increases at a time when many Illinoisans are still reeling from the economic impact of COVID-19.
Insurance Business Magpoints out, GEICO has been trying to increase its prices in Connecticut too, but the plan was rejected by a state level regulatory body. Explaining its decision, The Connecticut Insurance Department (CID) said that GEICO had already reaped huge profits during the pandemic due to people staying at home and making far fewer insurance claims.
Despite this windfall, GEICO did not discount its rates, while many other insurers, including State Farm, Allstate, and Progressive did. As a result, the CID said it would not sanction rate increases for GEICO at this time.
Unfortunately for drivers in Illinois, there is no such regulatory body operating in their state, allowing GEICO to push ahead unfettered.
Jerry can help you save hundreds on car insurance
Before you rush to
cancel your GEICO car insurance, it must be said that all insurance companies raise their rates from time to time. These increases are typically less than 2%, so many customers don’t notice.
While GEICO’s Illinois increase is significantly higher, it still offers some of the most competitive car insurance rates, and might still be the best option for you.
The best way to find the cheapest car insurance, based on your unique profile, is to compare quotes with
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