State Farm faces backlash over $523 million insurance rate hike in Illinois

(The Center Square) – State Farm’s plan to raise homeowners insurance rates by more than half a billion dollars in Illinois has reignited calls from consumer advocates to overhaul how the state oversees insurance rates.

“Home insurance rates are on the rise in Illinois due to rising home replacement costs and more frequent severe weather events that are driving up the cost and frequency of claims,” State Farm said in a news release this week. “These changes reflect broader trends in loss patterns and repair costs and are necessary to help ensure we can continue providing reliable coverage to our policyholders.”

Abe Scarr, director of the Illinois Public Interest Research Group, said there is currently no regulatory oversight in Illinois over the rates State Farm sets.

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