Pantagraph.com Weather forecast, local radar and more
MoneyWednesday, April 18, 2007 6:31 PM CDT
Comments Comments (50) | E-mail this page E-mail this page | Print this page Print this page | Enlarge type Enlarge type | Reduce type Reduce type | Search archives Search archives | RSS RSS feeds | Add to My Yahoo! Add to My Yahoo!
State Farm drops auto insurance rates
By Michelle Koetters
mkoetters@pantagraph.com
Advertisement

BLOOMINGTON — If you have car insurance through State Farm, treat yourself to an extra car wash and some driving music.

State Farm Mutual Automobile Insurance Co. will lower its overall rate level in Illinois an average of 6 percent, effective May 14.

The average customer will save $20 on a six-month policy premium, spokeswoman Missy Lundberg said Wednesday. Individual rates depend on several factors, including where people live, their driving record and details about their car, Lundberg said.

In total, Illinois customers will save $97.2 million annually.

Lower-than-expected claims and a good financial year in 2006 were main factors in the reductions, Lundberg said.

Illinois was one of 30 states where State Farm decreased its auto coverage rate, Lundberg said. Rates decreased between 1 and 10 percent across the country. Premiums for collision and comprehensive coverages will decrease the most.

“Illinois just had a really good year when it came to claims,” Lundberg said.

State Farm also reported a record $5.32 billion profit in 2006, up from $3.24 billion in 2005, and the insurer’s net worth grew nearly 16 percent to $58.1 billion.

For the most part, 2006 was a good year for drivers nationwide.

Auto insurance premiums are expected to fall across the country this year for the first time since 1999, said Robert Hartwig, president and chief economist of the Insurance Information Institute in New York.

“We’re seeing fewer accidents, and that’s good news,” Hartwig said. “Ultimately, that is going to benefit cus-tomers as we pass along those savings.”

And State Farm isn’t the only auto insurance company to pass along savings to its clients, Hartwig said.

The competitive insurance market encourages lower rates, as well, he said.

Drivers should see decreases ranging between 3 and 6 percent in 2007, with the best drivers receiving the big-gest cuts, Hartwig said.

State Farm last reduced its rate .3 percent in October, but its most recent significant rate deduction was 5 per-cent in March 2005, Lundberg said.

State Farm, the nation’s largest car insurer, insures about one in every three cars in Illinois.

Video
Most commented stories
Community calendar
Browse online archives
Recent issues:
Reader comments on this story - 50 total

Note: All views and opinions expressed in reader comments are solely those of the individual submitting the comment, and not those of the Pantagraph or its staff.

Crow wrote on Jun 18, 2007 7:47 PM:

" Hi!!! Excellent resource you've got here!!! Will definately be back!!! "

Joe wrote on Jun 17, 2007 4:04 PM:

" I just wanted to say WOW!!! goose bumps and e-motions, the design of your web page really got me!!! Check my sites ;) "

Nikki wrote on Jun 17, 2007 3:39 PM:

" Hi there!!! Signing your site... not bad at all!!! Simply and great!!! I wanna know your opinion about my :) "

Velez wrote on May 28, 2007 3:32 PM:

" I just like to say that your website is absoulutely brilliant!!! Do you think my sites too brilliant ;) ? "

Joahn wrote on May 25, 2007 4:13 PM:

" Hi!!! Very nice design, by the way!!! I think ... What do you think about my? "

Stowers wrote on May 22, 2007 3:40 PM:

" Nice resource, very interesting reading... Good luck with your site in the future!!! May be you like my sites? "

Nick wrote on May 21, 2007 4:05 PM:

" Fantastic website... Good resources for learning, easy to follow... Keep up the good work!!! Make your opinion about my resources :) "

Stringer wrote on May 21, 2007 3:40 PM:

" Hi there!!! Signing your site... not bad at all!!! Simply and great!!! I wanna know your opinion about my :) "

Salinas wrote on May 16, 2007 11:28 PM:

" Hi!!! Very nice design, by the way!!! I think ... What do you think about my? "

Jackson wrote on May 16, 2007 3:40 PM:

" I think what you are doing is great!!! I want to use your color scheme at my sites... "

To: Fred wrote on Apr 20, 2007 9:15 AM:

" Because they are either lying to you, or they are wasting their money on something else. "

To: Fred wrote on Apr 20, 2007 8:03 AM:

" Because they are either lying to you, or they are wasting their money on something else. "

To: Fred wrote on Apr 20, 2007 7:52 AM:

" Because they are either lying to you, or they are wasting their money on something else. "

To: to: Think about it wrote on Apr 20, 2007 7:01 AM:

" Nobody said that you had to love State Farm, but I'd would really like to know what the "negative impact it has on B-N" is. This town is economically strong, primarily because of State Farm. I wish that it would leave so all of you bashers would realize how ridiculous of a comment that really is. My mother always said, "if you don't have something nice to say about someone (thing) don't say anything at all". Seems like a lesson can be learned there for about 75% of the people that post messages. Plus, when the comments are as unfounded as most are, it seems like a good time to keep your thoughts to yourself. "

fred smythe wrote on Apr 19, 2007 8:07 PM:

" why is it that my friends and relatives that work for state farm do not even buy state farm insurance......i asked them and they said they could not afford it!!!!!!! and these are people who are "up the ladder" "

To: to: Think about it wrote on Apr 19, 2007 3:55 PM:

" Nobody said that you had to love State Farm, but I'd would really like to know what the "negative impact it has on B-N" is. This town is economically strong, primarily because of State Farm. I wish that it would leave so all of you bashers would realize how ridiculous of a comment that really is. My mother always said, "if you don't have something nice to say about someone (thing) don't say anything at all". Seems like a lesson can be learned there for about 75% of the people that post messages. Plus, when the comments are as unfounded as most are, it seems like a good time to keep your thoughts to yourself. "

To Trick is and As If wrote on Apr 19, 2007 3:22 PM:

" It sounds like you guys have the insurance industry figured out...maybe you guys should get together and start a company.... "

To Waffles wrote on Apr 19, 2007 3:06 PM:

" CD 12 bucks, Carwash 6 bucks. Bet you don't watch Rachael's 40 dollars a day!!!! "

To: gah! wrote on Apr 19, 2007 2:55 PM:

" Your best best is to AVOID SF. Unless that is you want to be herded like cattle every day as you wait in line for your profit-sharing. "

AS IF wrote on Apr 19, 2007 2:49 PM:

" As if it's not enough to see SF advertising on every sporting event, every channel, even on this very page, The Pantagraph writes an article about a temporary sale SF is having on policies? What about the price breaks at WalMart? :) I agree with author Trick Is...it's not a sale if it was overpriced to begin with. And, to author Thanks Alot SF, they can't take it out of your premiums bc that is illegal rebating. "

To: Think About It wrote on Apr 19, 2007 2:16 PM:

" Where is it written that to live in this town it's required one love State Farm? Many of us know the negative impact State Farm has on Bloomington-Normal and would love it if it disappeared. Nobody would miss a home improvement store or two and a bunch of chain restaurants. Who are you to tell people to stop posting comments? A STATE FARM "ASSOCIATE?" "

Think About It wrote on Apr 19, 2007 1:34 PM:

" To all of you that sit high and mighty bashing the corporate giant living in your back yard, stop and think about how many jobs are in this community because of State Farm. I'm not talking about the 12,000+ employed by them, I'm talking about the hundreds of folks that work at the Wal-Marts, Meijer's, grocery stores, etc. in this town. And what about the restaurant employees. Would all of these jobs be available if the evil State Farm picked up and left town? It doesn't take a genius to figure out that if State Farm wasn't here, this town would be a very small college town. I can't believe how many people bash this organization when ANY news comes out about them. Some of you have no concept of the impact that State Farm has around here, and should refrain from posting comments, when they are uninformed and not thought out. "

TO: Jeremy wrote on Apr 19, 2007 1:20 PM:

" Bloomington-Normal was here before State Farm. Spend some time working there and you'll know why people want it to go away. "

To: Jeremy wrote on Apr 19, 2007 12:36 PM:

" Thanks; well said. "

a reader wrote on Apr 19, 2007 12:20 PM:

" TO ALL THE NEGATIVE PEOPLE ...are you still talking? "

Re: Thanks a lot, SF wrote on Apr 19, 2007 10:19 AM:

" Last time I checked, it was a free country and you could pick your car insurance. If you are that unhappy, why don't you look eslewhere instead of belly-aching about it. "

To Jeremy wrote on Apr 19, 2007 9:58 AM:

" Would being blowed away with the wind be covered? "

Thanks a lot, SF wrote on Apr 19, 2007 9:44 AM:

" I've never been at fault for an accident in my life, including several years in California where it's typical for even good drivers to pay over $1,000/year. That means I've probably given SF over $30,000... and for what- peace of mind? Now they cut my rate a whopping $20, while paying Rust millions for a good year? And that ballyhooed dividend check for $18? It was a bother just cashing it. Why didn't they take it out of our premiums? "

MMMM wrote on Apr 19, 2007 9:41 AM:

" "American made car" There's a hot one. "

To Down wrote on Apr 19, 2007 9:28 AM:

" Don't buy foreign cars which don't hold up as well in crashes and maybe you wouldn't be paying higher premiums. Do your research to see what crash ratings are, etc and then buy the appropriate vehicle and your premiums will go down. I drive American cars with good safety ratings and my premiums went down! "

Bonus wrote on Apr 19, 2007 8:44 AM:

" No one commented on the bonus/salary of the CAT CEO in this paper earlier this week. Look at his salary, then make a comparison... "

Jeremy wrote on Apr 19, 2007 8:41 AM:

" Seriously, why so much hatred for State Farm and their employees in this community? Several of my neighbors are SF employees and they are great people. And yes, one of them is from another country, yet he is one of the most polite and gracious people I know. I've lived in this town for almost a year now and all I ever see is comments bashing the organization. Do people not understand what type of economic impact large Fortune 500 companies like SF have on small communities like B-N? Let me tell you, it's huge! You should be rooting for them to do well, hire people, and pay them well. In turn, their employees will spend money in our shops and restaurants (like the one I manage) and the community will thrive. Sure, people don't like to hear or read about unfortunate events like Katrina, but I think it's because people don't understand the nature of insurance. Every other insurance company is in the same battle as SF. You hear more about it, however, because SF insures more homes than anyone else. What I don't read enough about is the great community service which is given back. One of those neighbors I mentioned earlier contributes a great amount of his personal time volunteering in various capacities. I just wish this area would spend more time rallying around its largest corporate employer and appreciate what it does. I'm sorry to say this, but if State Farm goes away, this little town of Bloomington-Normal would blow away in the wind. "

To: ROFLMAO wrote on Apr 19, 2007 8:03 AM:

" What other bills that you have are dropping 6%?? Power? Gas? Groceries? Rent/Mortgage? No, none of those. And yeah I see the connection between SF and illegal immigration. Are you done rambling yet? "

Be grateful wrote on Apr 19, 2007 7:50 AM:

" you aren't in Louisiana, and SF isn't always the "bad" guy. You should read this story, which I didn't see the local news report. www.clarionledger.com/apps/pbcs.dll/article?AID=/20070415/BIZ/704150351/1005/BIZ "

Waffle of Justice wrote on Apr 19, 2007 7:46 AM:

" How do you buy a new music and a carwash for $20? "

Trick is wrote on Apr 19, 2007 7:36 AM:

" Raise it up 150 and drop it by 100 or start out high,make the insured come to you instead of you to him balk at the coverages in a claim and delay or deny the "other guy" as long as possible making him glad he doesn't have your insurance. "

Chandler wrote on Apr 19, 2007 6:52 AM:

" Just don't ever dare to make a claim. "

Wow wrote on Apr 19, 2007 6:43 AM:

" Pricing goes up, people complain. Pricing goes down, people complain. Geez, anyone ever grateful? I'm happy to save even a few bucks when I can! I'd rather get a measly $20 savings than none at all. "

fred smythe wrote on Apr 19, 2007 6:34 AM:

" I suppose they can afford that becuz they don't pay very well on the claims in the south!! hummm or is it becuz it does make them look a little crappy when it comes out the head honcho is making an insane amount of $$$$$$ "

ROFLMAO wrote on Apr 19, 2007 12:44 AM:

" A customer will see a 20.00 saving on a 6 month premium? Holly cow, no you all will be able to finance that vacation youv'e always wanted to take but you were to busy paying high bonuses to CEO's, throwing money into a colisium for other people to enjoy but you can't because of the ticket prices. Oh yea, you are paying for illegal aliens to rip you off too. If the illegal aliens get their "driver's certificates you will also be paying for translators and probably policies in Spanish if they don't already have them. You can also pay higher premiums when there are accidents. Yep, that 40.00 a year will come in handy. "

Former SF policyholder wrote on Apr 18, 2007 10:43 PM:

" I just switched my policy from SF to another major provider and saved on $100 on a 6 month policy. Same coverage limits but over $100 less. And this isnt a whole in the wall insurance company "

Down?? wrote on Apr 18, 2007 10:27 PM:

" we pay monthly and mine went up over $5 now per month so how did it drop??? I sure didn't see it and i don't have fancy cars. 2002 Sante Fe and a 2003 saffari van. sheesh what a rip "

to gah! wrote on Apr 18, 2007 10:12 PM:

" I don't know. Are you here on an H1-B visa?? "

shut up wrote on Apr 18, 2007 9:51 PM:

" Maybe there would be less SF bashers if you people would shut up and stop encouraging them. How on earth do you ask for something and then complain about it? "

DG wrote on Apr 18, 2007 9:42 PM:

" I'm not a big SF fan, but whenever there's even a slim chance of ripping SF, there are like 100 people piling on. One positive article, and no one has a word to say. Pathetic. If I worked at SF, I would be on here complimenting them. As a policyholder, THANKS! "

wow wrote on Apr 18, 2007 9:40 PM:

" With lower rates AND the previously announced auto dividend, I'll be able to retire!!!! "

RollingEyes wrote on Apr 18, 2007 9:23 PM:

" Where are all the SF bashers now? "

Oh Darn wrote on Apr 18, 2007 8:42 PM:

" Oh darn - there goes my raise in May. I'm sure it will be lower now. "

gah! wrote on Apr 18, 2007 6:31 PM:

" Too bad COUNTRY doesn't follow suit. Instead, they will keep putting in gimmick programs. I know, I work there. Is SF hiring?? "

Haha wrote on Apr 18, 2007 6:13 PM:

" Just in time. Now I can afford to buy gas! "
Add your own comments

Please read the rules before posting comments.

You must be logged in to leave comments.
If you don't have a member ID, please register.

*Member ID:
*Password:
Remember login?
(requires cookies)
  Forgot Your Password?
 
Lee Enterprises Customer Service | 301 W. Washington St., PO Box 2907, Bloomington, IL 61701-2907 | Ph. 309-829-9000 | 800-747-7323
Copyright © 2008, Pantagraph Publishing Co. and Lee Enterprises. All rights reserved. | Terms of Use | Privacy Policy