State Farm Defends 27% Insurance Rate Hike, Calls Pritzker's Criticism 'Factually Incorrect'
ILLINOIS, JUL 17 – State Farm cites $638 million in hail claims and rising rebuilding costs for a 27% average hike affecting 1.5 million Illinois homeowners, prompting state regulatory scrutiny.
- On July 15, State Farm is implementing a 27% average home insurance rate hike for 1.5 million Illinois policyholders, with renewals rising August 15.
- State Farm's homeowner insurance division has lost money for 15 years, the company said, and it paid $638 million in hail damage claims last year.
- Average premiums stood at $1,700 before the hike, State Farm said, and NOAA recorded 139 tornadoes and 303 hail incidents in 2024.
- He ordered the Department of Insurance to explore options to challenge the rate hike, citing an `unfair and arbitrary insurance rate hike`, according to Democratic Gov. JB Pritzker.
- Ahead of the October veto session, Illinois Senate Bill 356, introduced by State Sen. Michael Hastings, D-Tinley Park, would require prior approval for rate hikes of 5% or more, with a 30-day comment period, Hastings said.
13 Articles
13 Articles
Illinois leaders blast State Farm as it hikes home insurance rates
State Farm is raising home insurance rates 27% due to inflation and severe weather, saying it's been spending more than it's taking in. But one Illinois lawmaker looking to limit rate hikes retorted, "Joe Schmo ain't buying that crap."
After Pritzker’s attacks on State Farm, insurance industry sees another push for rate review coming to Springfield – WGLT (NPR at ISU)
Gov. JB Pritzker has already called on state lawmakers to “enact a legislative solution” during the fall veto session that “prevents insurance companies from taking advantage of consumers through severe and unnecessary rate hikes like those proposed by State Farm.” Currently, the Department of Insurance gets notified of a rate hike but can’t stop it. Regulators in other states can do that.
State Farm defends 27% insurance rate hike, calls Pritzker's criticism 'factually incorrect'
BLOOMINGTON, Ill. (WTVO) — State Farm is defending its 27% rate hike on Illinois homeowner insurance policies, calling Gov. JB Pritzker's condemnation "factually incorrect." According to the Chicago Tribune, the insurance agency is raising rates in Illinois by 27.2% on August 15th, due to an increasing number of extreme weather events. The increase comes as State Farm says it struggles to keep up with insurance claims on a rising volume of damag…
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