Bloomington-based State Farm is raising Illinois auto insurance rates by an average of 4.2%. That's less than the nearly 14% drop last year because of reduced driving due to the pandemic.
The rate hike goes into effect March 29, according to a company statement.
State Farm said its rates remain below pre-COVID-19 levels, although miles driven and claim volume have increased. Driving has not returned to pre-pandemic levels.
The company said its approach remains the same--to make incremental adjustments based on driving behaviors to ensure rates reflect anticipated driving and claim volume, and to minimize the impact to customers as much as possible.
Other insurers also are adjusting rates. Progressive has announced a rate increase. Allstate has issued a rebate to policy holders, but its rate cuts last year were less than those of other companies.
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