State Farm defends Illinois home insurance price hike, blames severe weather events for 'unsustainable' losses
Share this @internewscast.com

CHICAGO (WLS) — The largest home insurer in Illinois is defending the looming rate hike that will impact 1.5 million State Farm customers.

ABC7 Chicago is now streaming 24/7. Click here to watch

State Farm is set to raise home insurance rates by 27% beginning August 15, 2025.

The Bloomington-based insurer said the price increase comes as it anticipates more extreme weather, plus the rising repair costs from inflation.

Last year, for every dollar in premiums collected, State Farm paid out $1.26 in total costs.

The company informed ABC7 that their homeowners’ insurance sector in Illinois has been experiencing “unsustainable” financial losses for 13 of the past 15 years, necessitating a rate increase to ensure financial health.

“Last year alone in Illinois, we settled over $638 million in claims related to hail damage,” explained State Farm representative Gina Morss-Fischer. “This amount was second only to that of Texas, leading us to implement changes starting today for new policies and for existing policies by August 15th.”

Governor JB Pritzker said he wants the Illinois Department of Insurance to take all possible actions to combat this.

The governor called on the general assembly to pass a bill during veto session.

State Farm issued the following statement:

“Illinois residents deserve transparent discussions about insurance economics instead of political talk. Governor Pritzker’s remarks are factually inaccurate. State Farm does not transfer costs between states, and we have provided evidence to the Illinois Department of Insurance to support this. Our Illinois rates are based on claims and risks specific to Illinois.

The facts are simple: State Farm’s Illinois homeowners business has lost money in 13 of the past 15 years, including paying out $1.26 for every dollar collected in 2024. These losses are driven in part by severe weather damaging communities across the state. No company can absorb such losses forever and still be there for customers when disaster strikes.

State Farm has called Illinois home for more than a century. More than 21,000 people in Illinois proudly serve customers as State Farm agents, agent team members and State Farm employees. Our commitment is to keep rates competitive while staying financially strong-so we can deliver on our promises when people need us most.

We value our partnerships with state leaders and continue to work together toward finding solutions that allow us to continue serving customers and promote a healthy and competitive insurance market.”

Copyright © 2025 WLS-TV. All Rights Reserved.

Share this @internewscast.com
You May Also Like
Illegal alien failed CDL test 10 times in 2 months before fatal Florida crash that killed 3

Tragic Florida Crash: Driver Fails CDL Test 10 Times Before Fatal Accident—A Deep Dive into the Devastating Consequences

An undocumented truck driver accused of causing a fatal accident in Florida…
Coast Guard nabs 50 tons of cocaine bound for posh coastal enclaves as cartel ops ‘rival Amazon’: expert

Coast Guard Seizes 50 Tons of Cocaine Destined for Luxury Coastal Areas, Says Expert

The U.S. Coast Guard (USCG) recently declared a significant triumph in the…
Eight Americans arrested in Bahamas after authorities discover 'high-powered weapons' cache, ammunition

Shocking Discovery: Eight Americans Detained in Bahamas for Hidden Arsenal of High-Powered Weapons

In a significant operation on Tuesday, eight American citizens were detained in…
Bernie-Endorsed Maine Senate Candidate's Campaign Implodes As Dems in Disarray Hits Fever Pitch

Maine Democrats Face Backlash Over Controversial Policies: A Step Too Far?

In a surprising twist from Maine, Democratic U.S. Senate candidate Graham Platner…
Broadway musicians reach tentative labor deal, averting a strike

Broadway Musicians Secure Tentative Labor Agreement, Preventing Potential Strike

NEW YORK (AP) — In a significant move to keep the show…
Trucking company owned by illegal immigrant raked in money from taxpayers before fatal crash: records

Records Reveal Taxpayer-Funded Earnings of Immigrant-Owned Trucking Firm Prior to Fatal Accident

EXCLUSIVE TO FOX: Records reveal that an undocumented immigrant in Indiana, recently…
Families outraged after high school student in violent sex assault cases avoids prison as youthful offender

Community Outrage Erupts: High School Student Escapes Prison Despite Violent Assault Charges

The community of Payne County, Oklahoma, is in an uproar as parents…
Suspect Keon King charged with murder in death of Philadelphia woman Kada Scott; new details revealed

Philadelphia Tragedy: Keon King Faces Murder Charges in Kada Scott’s Death – Latest Updates Unveiled

PHILADELPHIA — Keon King, the man initially arrested in connection with the…
Oswego, Illinois Chick-fil-A: Darryl Lee Jr., 19, charged with murder in stabbing attacks at restaurant on Route 34, officials say

Tragic Incident: 19-Year-Old Charged with Murder in Oswego’s Route 34 Chick-fil-A Stabbing

OSWEGO, Ill. (WLS) — Authorities have charged a suspect in connection with…
King Charles, Queen Camilla pray with Pope Leo in historic step for churches and welcome respite from Epstein scandal

King Charles and Queen Camilla Engage in Historic Prayer with Pope Leo, Offering a Church Unification Milestone Amid Epstein Scandal Distraction

In a landmark visit to the Vatican, King Charles III of Britain…
Murder suspect arrested over 40 times before allegedly killing hotel guest

Shocking Pattern: Serial Offender with 40+ Arrests Charged in Hotel Guest Murder

In a startling case from North Carolina, a man with a lengthy…
Taylor Swift earns first Songwriters Hall of Fame nomination in debut year of eligibility

Taylor Swift Celebrates Her First Nomination for Songwriters Hall of Fame in First Year of Eligibility

In a groundbreaking move, pop sensation Taylor Swift might soon make history…