State Farm hikes Illinois rates 13%

State Farm hikes Illinois rates 13%
By Becky Yeark
Copyright © 2009, Chicago Tribune
9:30 AM CDT, July 2, 2009
http://www.chicagotribune.com/business/chi-biz-state-farm-illinois-rate-hike-july02,0,4938602.story


State Farm Fire and Casualty Company on Friday announced an average statewide rate increase of 13 percent for its Illinois homeowners insurance policyholders.

The Bloomington-based company, which is the leading insurer of homes in the U.S. and Illinois, covering more than one in three houses, said the new rates will occur Aug. 1 for new customers and take effect Oct. 1 for renewing policyholders.

Rate changes for individual customers will vary, depending on a variety of factors such as policy coverages and deductibles.

"Homeowners rates are based on projected costs and reflect trends in the number of claims and the cost to pay them," the company said in a statement.

At the same time, State Farm said it's increasing its home/auto discount from 17 to 20 percent. The discount applies to State Farm homeowners insurance policyholders who have a qualifying State Farm auto insurance policy.

State Farm stressed that, despite the upcoming hike, overall rate levels have declined an average of 4.1 percent over the past five years. State Farm's recent homeowners rate history is as follows: 2008, an average increase of 2.6 percent; 2007, an average drop of 3 percent; 2006, an average hike of 1.7 percent; 2005, an average decrease of 1.5 percent; and 2004, an average decline of 3.7 percent.

Allstate earlier announced average hikes in Illinois homeowners rates.

byerak@tribune.com