State Farm isn’t just asking drivers to pay more.
According to a filing made with the Illinois Department of Insurance, the largest insurer in Illinois will increase homeowners’ rates by an average of 2.4% in Illinois starting May 15.
According to the filing, the increase will add $25 per year to the average policy.
This is a modest increase compared to the statewide average so far in this year. Once the second increase takes effect in June, it will cost an average of $114 per year.
A spokesperson did not respond to an inquiry for comment.
The most recent available data shows that State Farm, based in Bloomington, Indiana, had a 35% share of the homeowners insurance market in its own state as of 2021. State Farm also insures one out of every three vehicles in the state.
Inflationary trends that affect insurers, such as higher prices for used cars and medical expenses, are a major contributor to the high monthly inflation experienced by households.
In February, Allstate of Northbrook, Illinois, was the second largest insurer of home insurance in Illinois. This costs the average policyholder an extra $324 per year.
State Farm and Allstate together account for almost half of the Illinois homeowners insurance market.
State Farm posted a $6.7 billion loss in 2022. State Farm’s auto insurance business was the major contributor.
The underwriting gains for homeowners were $849 million, compared to a $1.1 Billion underwriting loss.