(The Center Square) – Inflation is taking a toll on car insurance rates.
According to data from the U.S. Department of Labor, auto insurance rates increased 20% from 2022 to 2023.
Premiums are much higher, in part due to the higher cost of auto repairs. According to state Rep. Jeff Keicher, R-Sycamore, inflation has affected the repair business.
“So we also see all the generic inflationary pressures that we’ve seen in our society on everything from gasoline to eggs to other things that we’re buying every day,” Keicher said.
In Illinois, competition has helped keep insurance premiums from going up even more, he said.
“That ability for companies to compete on price and what they’re offering in their policy has allowed Illinois rates to be the 18th-lowest rates in the nation,” Keicher said.
Government regulation of insurance rates would lead to higher prices, he said.
Advanced technology is one reason rates have gone up in recent years. Higher-tech vehicles have led to higher repair costs.
A rear bumper replacement cost up to $800 10 or 15 years ago.
“Today, we have cameras and we have sensors, and those all need to recalibrated from a safety standard. You can’t just unplug them and plug them back in. And so now the average bumper repair, rear-enders are one of the most common accidents we see, those are running $1,800 to $2,300 on average,” Keicher said.
Keicher added that windshield repairs are also more expensive, due to calibration services.