• Insurance
  • State Farm cutting Illinois auto rates for second straight year

    But reductions in Illinois, where State Farm insures one of every three vehicles, pale in comparison to the rate relief drivers in neighboring Wisconsin and Indiana are getting.

    State Farm auto rates Chicago Illinois
    Getty Images

    79彩票注册网址

    79彩票注册网址State Farm, by far the largest car insurer in Illinois, is cutting its auto rates by 2 percent.

    The reduction, effective March 18, follows a 2.9 percent rate cut that took place in March 2018.

    79彩票注册网址“We continually evaluate how we can best serve the long-term interests of our customers,” a State Farm spokesman emailed. “In this case, as conditions have allowed, we are very pleased to offer another rate decrease in Illinois.”

    The Bloomington-based insurance giant has reduced prices in most states over the past year—many times repeatedly—as it confronts a loss of policyholders to cheaper alternatives.

    In Illinois, State Farm’s number of policyholders has held steady over the past year, at more than 2.8 million. The company insures about one of every three vehicles on the road in its home state.

    The multiple rate cuts follow a period of steady increases that State Farm and many other insurers imposed following a sharp increase in car accidents four years ago. State Farm’s resulting drop in market share was unusual for an insurer that in the past has tended to preserve its customer base even in the face of modestly higher prices.

    79彩票注册网址Drivers with State Farm in neighboring states of Indiana and Wisconsin are catching even more of a break.

    State Farm is cutting Indiana auto rates by 4.6 percent and Wisconsin rates by 2.9 percent, both effective next month, according to filings with those states’ insurance regulators.

    In Indiana, that marks State Farm’s fourth rate reduction in less than a year, with decreases totaling 13.2 percent including the upcoming one in February. In Wisconsin, it’s the third consecutive rate cut in less than a year, with decreases totaling 10 percent including the forthcoming one.

    Small wonder. In Indiana, for example, State Farm’s number of auto policyholders is down 5 percent from August 2017 until January 2018, to 1.17 million from 1.23 million, according to filings. And that’s after three straight price reductions.

    State Farm’s rate moves are good news not only for the company’s customers but for consumers generally. As the clear market share leader across the U.S. in both auto and home insurance, State Farm’s pricing constrains its competitors that otherwise might want to boost premiums. In general, auto rates have settled down after a period of sharp increases from 2015 to 2017.

    7072彩票开户 7073彩票地址 963彩票开户 7073彩票网址 689彩票邀请码 7073彩票注册 8炫彩彩票app 677彩票开户 7073彩票登录 66顺彩票app
    Letter
    to the
    Editor

    Have something to get off your chest? You can?send us an email.79彩票注册网址?Or tell us on our page or on? @CrainsChicago.