Illinois drivers brace yourselves – insurance rates are not just climbing; they're rocketing skywards with Allstate and State Farm planting firm double-digit hikes. Allstate is set to jolt homeowners with a 12.7% spike this week, while State Farm isn't far behind, prepping a 12.3% increase for May, as reported by the Chicago Tribune. And that's not where the wallet-pinching ends; car owners across the state are also hit with a hefty 28% auto insurance rate boost for the year.

Inflation might be showing signs of cooling off, but home and car insurance premiums have missed the memo in Illinois. Even as inflation dips, the insurance sector appears to be locked into a trend of escalating payouts. "Insurance is reactionary, so even though inflation is currently slowing down when we experience losses, insurance companies pay for them, and everything’s at a premium," said Bankrate analyst Shannon Martin in a statement obtained by the Tribune. Contributing to the climbing claim costs are steep repair expenses and a spike in traffic fatalities.

For those carrying policies from Allstate, the country's road to financial relief might seem particularly long. The insurer has announced an 11.2% rate increase in Illinois, set to start on August 17, marking up the average premium by $275 annually, as per a filing with the Illinois Department of Insurance detailed by Chicago Business. This means in just 20 months, Allstate auto insurance rates have surged by 60%, from an average of $1,700 to a startling $2,732 per year.

The upward trend in insurance rates isn't just an Allstate show. Even State Farm, the state's largest auto insurer holding about a third of the market, has implemented rate increments exceeding 12% this year. Similarly, Progressive, ranking third in the Illinois insurance market arena, has ramped up its rates by 8% to 10%, dependent on the customer's choice of purchase avenue. But while competitors are also boosting premiums, Allstate's increases have been particularly sharp, leading to a 4% drop in the number of its Illinois auto policies, as told by Chicago Business.

In light of these steep increases, there have been political stirrings in Springfield, with proposed bills aiming to grant state regulatory bodies a greater say in the approval of insurance rate changes and to compel insurers to disclose their underwriting results in Illinois. Despite the legislative efforts, pushback from the insurance industry has stalled progress. As demand for rate review grows amidst Illinoisans grappling with rising costs, consumer advocacy groups have intensified their calls for enhanced transparency and regulatory oversight in the sector.