State Farm said Monday it would lower auto insurance rates in Illinois on average 13.7% because people are driving—and crashing—less due to the pandemic.
It's part of a nationwide reduction in rates that's expected to add up to $2.2 billion. That was announced last month. The rate changes for Illinois were disclosed Monday.
The rate change will impact 2.8 million auto customers in Illinois. State Farm says it will save them around $320 million. This applies to current customers at policy renewal, as well as new and returning customers.
“Current State Farm driving data and claims experience show a considerable decline in miles driven and fewer accidents,” State Farm Senior Vice President Rob Stewart said in a statement. “As a result, we’re looking for ways to continue supporting our Illinois customers while we monitor and adjust to trends.”
In addition, State Farm's discount for participating in Drive Safe & Save is increasing to 10%. In that program, a driver's behavior impacts how much they pay.
Many U.S. insurers offered money back to their auto customers due to the pandemic. That saves insurers money because they’re not paying out as many claims.
