Illinois Auto Rates Experience Second Increase This Year by State Farm

State Farm has increased the average price of auto insurance in Illinois by 6%, only five weeks after an average increase of 6.5% was implemented in Illinois.

According to a filing made with the Illinois Department of Insurance, Bloomington’s insurance giant will implement its latest rate increase on June 5.

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The new rates are expected to add $56 per year to the average policy. The average policyholder would have received an additional $58 per year.

State Farm spokeswoman Gina Morss Fischer said via email that “inflationary pressures, supply chain issues and higher claim costs continue to drive rate changes.” “We are making changes to match the price with risk.”

She did not respond to the question of whether State Farm has filed multiple rate increases in other states in 2023.

State Farm, the biggest auto insurer in Illinois covers about one third of all vehicles in the state.

State Farm’s decision to raise prices is not surprising, after the company posted its highest ever in 2022. State Farm, a mutual insurance company, is owned by its policyholders and therefore not under the same shareholder pressures as rivals such as Northbrook-based Allstate. State Farm, as a mutual insurer owned by its policyholders, is not subject to the shareholder pressures felt by rivals like Northbrook-based Allstate.

State Farm’s losses were so severe that it lost more than $13 Billion in the last year alone. This includes claims payments and reserves adjustments. Its losses exceeded its premiums collected. Before covering one dollar of overhead, the company was already in the red.

It is now up to you whether Illinois will see more price increases before the end of this year.