State Farm Insurance is raising its rates for auto coverage in Illinois. The 2.6% average hike goes into effect in February. It's the second time in less than 12 months State Farm has raised Illinois rates. April's increase was less than a percent. Even together, the two hikes are less than the increase most other insurers have announced. Allstate rates are going up 5.7%. Geico has increased auto premiums significantly as well.
Insurers indicate they are seeing higher claims losses across the nation this year in both dollars and numbers of claims. There are various reasons, but more drivers on the road is a part of the explanation. Industry analysts say an increase in driving for employment is in part a reflection of an improving economic climate.
Bloomington-based State Farm has about a third of the Illinois auto market.