State Farm Insurance is announcing an auto rate decrease for Illinois. The Bloomington-based company says the average decline for Illinois rate payers will be 2.9 percent.
Senior Vice President Rob Stewart said in a news release the company can afford the drop because of its overall financial strength. The total for the decrease will be about $65 million.
The move comes after two years of mixed but generally upward rate hikes caused by company record auto losses in 2016.
- February 2016: +2.6 percent
- October 2016: +5.8 percent
- September 2017: +1.7 percent
- November 2017: - 2.2 percent
- May 2018: - 2.9 percent
The company said a variety of factors influence rate making.
“We continually evaluate how we can best serve our customers and are very pleased to be able to offer this rate decrease in Illinois,” said Stewart.
State Farm insures about one of every three autos in Illinois, but has seen its overall number of policies in Illinois decline slightly.
- September 2016: 2.73 million Illinois policies
- September 2017: 2.71 million
- Current: 2.70 million
In October 2016, the company raised auto rates for its fire and casualty customers in Illinois by 7.4 percent, the largest increase in 14 years.
Those with policies held under the preferred State Farm mutual saw less of an increase. The hikes came after the company recorded its largest auto underwriting loss in State Farm history in 2016.
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