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 damages caused by extreme weather, and rising repair costs due to inflation.

State Farm said Illinois had more hail damage claims in 2024 than any other state, except Texas.

Gov. JB Pritzker responded to the rate increase in a statement Thursday, saying, “These increases are predicated on catastrophe loss numbers that are entirely inconsistent with the Illinois Department of Insurance’s own analysis – indicating that State Farm is shifting out-of-state costs onto the homeowners in our state. Hard-working Illinoisans should not be paying more to protect beach houses in Florida.”

On Tuesday, State Farm responded, saying, “Illinois families deserve an honest conversation about insurance economics rather than political rhetoric. Governor Pritzker’s statements are factually incorrect. State Farm does not shift costs between states, and we have provided information to the Illinois Department of Insurance to demonstrate this fact. Our Illinois rates reflect Illinois-specific claims and risks.

“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,” the company said.