State Farm auto rates to rise again for Illinois policyholders, still below pre-COVID levels

Posted on May 6, 2022

BLOOMINGTON – State Farm Insurance is raising auto rates again in Illinois, but the Bloomington company said rates are still cheaper than it was before the COVID-19 pandemic.

State Farm said it’s filed for a 3% rate hike taking effect June 13, following a 5% increase announced in late February. Together, the two rate changes amount to an average annual increase of about $59 more per car, State Farm said in an email to Heart of Illinois ABC.

The company acknowledges it is facing inflationary pressures.

“Auto claim costs are increasing in part due to a rise in the cost of labor, materials and supply chain-related issues. State Farm isn’t immune to some of these industry trends,” the company said in a prepared statement.

“We are continuously monitoring and adjusting to trends to make sure we’re accurately matching price to risk. Our approach is to make incremental adjustments based on driving behaviors to help minimize the impact to customers.

The insurer emphasized auto rates in the state are still below what the company charged before COVID-19 took hold.

In June 2020, State Farm announced it cut Illinois auto rates 13.7% because customers were driving less at the start of pandemic.

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