From Fox Business: State Farm will soon hike insurance rates on Illinois homeowners by more than 27%.
That is effectively adding $746 to the average policyholder’s annual premium. For comparison, the average homeowner’s insurance costs are roughly $2,110 a year, or about $176 a month, according to a May analysis by NerdWallet.
Illinois Gov. JB Pritzker criticized the insurance giant’s move, saying he is “deeply concerned by State Farm’s unfair and arbitrary insurance rate hike.”
“These changes will cost Illinois homeowners hundreds of additional dollars per year without a state-based justification or corresponding increases in protection,” he said in a statement.
The huge rate increase is scheduled to take effect on August 15.
State Farm argued that the rate increase is necessary, as home insurance claims costs are exceeding premiums collected in the state.
The company said last year, they paid out $1.26 in claims for every dollar in premiums collected, and declared that the losses are unsustainable.
On July 10, Gov. Pritzker wrote in a post on X, “I’m concerned by State Farm’s unfair and arbitrary insurance rate hike on Illinois homeowners. These increases are predicated on catastrophe loss numbers inconsistent with @IL_Insurance’s analysis, indicating State Farm is shifting out-of-state costs onto homeowners here.”
I’m concerned by State Farm’s unfair and arbitrary insurance rate hike on Illinois homeowners.
These increases are predicated on catastrophe loss numbers inconsistent with @IL_Insurance’s analysis, indicating State Farm is shifting out-of-state costs onto homeowners here.
— Governor JB Pritzker (@GovPritzker) July 10, 2025
Pritzker’s statement continues:
In addition to increased premiums, State Farm intends to raise out-of-pocket deductibles and reduce payouts for certain claims. These changes will cost homeowners hundreds of additional $’s per year without a state-based justification or corresponding increases in protection.
Over the past six years, our state economy has flourished based on transparent markets and fair competition. State Farm’s actions are antithetical to the core principles that the Illinois business community is built on.
Over the past six years, our state economy has flourished based on transparent markets and fair competition. State Farm’s actions are antithetical to the core principles that the Illinois business community is built on.
— Governor JB Pritzker (@GovPritzker) July 10, 2025
Today, I’m directing the Illinois Department of Insurance to take all available regulatory action to enforce the law and ensure a level playing field for Illinois homeowners.
I am also calling on the General Assembly to enact a legislative solution during the veto session that prevents insurance companies from taking advantage of consumers through severe and unnecessary rate hikes, such as those proposed by State Farm.
I am also calling on the General Assembly to enact a legislative solution during the veto session that prevents insurance companies from taking advantage of consumers through severe and unnecessary rate hikes, such as those proposed by State Farm.
— Governor JB Pritzker (@GovPritzker) July 10, 2025
State Farm to hike home insurance rates by 27% in this state https://t.co/LtYqhakdMR
— FOX Business (@FoxBusiness) July 24, 2025
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