State Farm to Trim Illinois Auto Insurance Rates

Some State Farm customers in Illinois could be getting a belated Christmas gift this year, with the insurer announcing Wednesday it is cutting overall auto insurance rates in that state by an average of 2 percent as of Dec. 26.

State Farm officials say the rate adjustment will save policyholders statewide a combined $33.7 million a year.

A spokeswoman for the Bloomington-based coverage provider could not be reached for comment, but company officials have said recent rate reductions in several other states were prompted by an unexpectedly low volume and size of claims filed by policyholders.

While the adjustment will result in an overall rate reduction, not all types of coverage will drop in price. Premiums for liability coverage will become less expensive, according to the company, but the cost of medical payments, collision and comprehensive coverage will increase for some policyholders and fall for others.

State Farm says premium changes for individual drivers will continue to depend on a range of factors, including the types of coverage they buy, make and model of car insured, annual mileage and location.

The adjustment to State Farm’s Illinois car insurance rates takes effect the same day as an overall rate cut for the company’s policyholders in Pennsylvania. That change is expected to reduce overall rates in the Keystone State by an average of 1.3 percent and save customers statewide a combined $16.5 million a year.

State Farm reduced overall rates in Alabama last month by an average 2 percent and in Georgia by 2.2 percent on average.

To research how State Farm performs when handling claims, consumers can read user-submitted State Farm auto insurance reviews online.

About John Pirro
John Pirro is a licensed fire and casualty insurance agent specializing in various aspects of the auto insurance industry. He worked in the auto body repair industry before taking a reporting position at Online Auto Insurance News.

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