State Farm, the Bloomington-based insurance giant, is implementing significant rate changes for Illinois customers, with auto insurance rates decreasing while home insurance rates spike dramatically. The company announced these changes as part of its response to evolving claims patterns and severe weather trends affecting the state.
State Farm will reduce auto insurance rates by an average of 5.7%, with some customers seeing premium reductions of up to 15%, according to a press release. The rate adjustments apply to both new and existing policies starting July 18, 2025, just one day from the current date.
Illinois homeowners face a much different reality. State Farm is implementing a 27% average increase in home insurance rates, affecting approximately 1.5 million policyholders across the state. The rate hike takes effect July 15, 2025, for new policies and August 15, 2025, for renewals.
State Farm attributes the dramatic home insurance rate increase to unsustainable losses in its Illinois homeowners’ business. The company reported that total costs amounted to $1.26 for every dollar in premium collected in 2024, with the previous year showing $1.30 per dollar. This represents what the company calls “unsustainable” losses that have occurred in 13 of the last 15 years.
The rate increases have drawn sharp criticism from Illinois Governor JB Pritzker accused the company of shifting out-of-state costs onto Illinois homeowners.
Now, Pritzker is asking the General Assembly to pass legislation “that prevents insurance companies from taking advantage of consumers through severe and unnecessary rate hikes like those proposed by State Farm,” during the October veto session.
“Over the past six years, our state economy has flourished based on transparent markets and fair competition,” Pritzker said. “State Farm’s actions are antithetical to the core principles that the Illinois business community is built on.”
State Farm has denied Pritzker’s accusation that the “increases are predicated on catastrophe loss numbers that are entirely inconsistent with the Illinois Department of Insurance’s own analysis.” He indicated that State Farm is shifting out-of-state costs onto the homeowners in Illinois.
“Hard-working Illinoisans should not be paying more to protect beach houses in Florida,” Pritzker said.
State Farm claims that it paid $638 million in hail damage claims in Illinois last year.
time for a new company my car insurance keeps going up also not down like they are saying
I just got my bill and it went up 40 bucks. I literally drive 1 mile to work. all that money is going in their pockets
I have been a loyal State Farm customer for over 60 years! I have already informed my Peoria, IL agent that before my October renewal, I will be shopping for both my homeowners’ and my auto insurance for the first time! To penalize Illinois customers for the losses in CA, FL and other states that have experienced major disasters in the past years is unacceptable, especially in light of State Farm no longer even offering insurance coverage in those states. Illinois needs an insurance commission that oversees this type of monetary abuse. To use “hail damage” as an excuse for raising Illinois rates is ridiculous in light of fires and hurricanes in other states. There simply is no comparison of roof damage to complete and utter destruction of a town or even a neighborhood.
“Hard-working Illinoisans should not be paying more to protect beach houses in Florida,” Pritzker Said. Ask Pritzker why hard working Illinoisans should pay some of the highest taxes is the US. He needs to focus on what he can control. If State Farm prices are not competitive, consumers will choose another provider just like residents of Illinois can move to other states…which they are doing!
I will be changing ins. co.if this rate increase happen
they have already increased home insurance dramatically over the last couple of years and this is so wrong and something should be able to stop them from increasing even more.
they have already increased home insurance dramatically over the last couple of years and shouldn’t be able to increase even more.
thus is ridiculous. State farm this is going to backfire. I have no problem leaving the company. you’re not looking out for the people you’re looking for your pocketbooks this is ridiculous this is which insurance is for to pay for damages and properties that’s what the people put in to you.trust.
I have been with State Farm for 24years & my agent and I always work things out no matter what I told her this time we will not be working things out it’s over I’m done and I’m leaving Even though they have been kind to me I am leaving I value my mortgage more than I value them and I hope all of their customers walk away because they need us we don’t need them drive them clean out of business
I have been with State Farm for 24 years as my agent and I have always worked things out no matter what even though they have been kind to me and I told her Not this time we cannot work this out State Farm need us we don’t need them and I hope everybody walks away from them and drive them clean out of business because they care nothing about us