One of the biggest players in the state is set to hike its rates in February, sparking a spate of fierce competition between carriers.
State Farm Insurance is set to raise car insurance rates in Illinois by about 2.6% according to filings with the state’s department of insurance.
The State Farm move, with approval, would affect 2.6 million policyholders. It would also see the carrier revise its base rates for bodily injury, liability, property damage liability, medical payments, comprehensive, collision, uninsured motorists and emergency roadside service coverage.
The insurer is pointing to both escalating repair costs but an increased frequency in collision claims.
That 2.6% represents a state average, with individual increase decided by location, car type and, of course, the driver.
The last rate increase for policyholders was a 0.9% back in April.
Even modest rate increases at one insurer have historically touched off a spate of fierce competition between carriers as they scramble to pick up customers on the hunt for a cheaper alternative.
