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State Farm auto rates declined in 2007
By Michelle Koetters
mkoetters@pantagraph.com
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BLOOMINGTON -- Even if they paid more for a gallon of gasoline, State Farm customers likely saved on their car insurance.

State Farm Mutual Automobile Insurance Co. auto insurance rates declined 4.9 percent in 2007, the fourth consecutive year of rate level decline, the company announced Monday. State Farm’s claims dropped 14.8 percent from 2003 to 2007.

Illinois drivers also have benefited from four straight years of rate decreases, said spokesman Dick Luedke.

Auto insurance rates dropped an average of 6.1 percent in May 2007 in Illinois, saving drivers a total of about $101 million last year, Luedke said. In four years, the rate has declined about 18.12 percent, which places Illinois 12th on the list of largest drops.

State Farm tries to predict its costs from claims when it decides on an insurance rate. The lower rates in the past few years are the result of fewer auto claims from accidents, hail, flood and theft, Luedke said.

“Recent claims experience is the biggest driver,” Luedke said. “For the most part, the claims experience has been good across the U.S.”

During the past four years, auto insurance rates have declined in every state and Washington, D.C. Overall decreases ranged from 1.72 percent in Louisiana to 29.19 percent in New Jersey.

An individual’s actual cost may not have declined at the same percentage, as there is a difference between an insurance rate and a premium, Luedke said.

Customers may pay more for insurance if they bought a new, more expensive vehicle and require more protection, he said.

State Farm also reduced premiums by $4.5 billion in the past four years.

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Reader comments on this story - 7 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.

Townie here... wrote on Mar 8, 2008 11:06 AM:

" You know, if it's not State Farm it would be ANY OTHER INSURANCE COMPANY that this town would complain about for no other reason than it's an insurance company. Not even fact based article indicating a reduction in rates can win over this crowd. This town is so hard to please... "

T wrote on Feb 26, 2008 6:35 PM:

" yea right "

to hmm wrote on Feb 26, 2008 12:36 PM:

" Well, regardless of the total number of policyholders, it appears they have weeded out the bad drivers (since claims have decreased). State Farm continues to be successful at providing great insurance for a very competitive price. "

to hmm wrote on Feb 26, 2008 6:59 AM:

" the numbers are easy to find, if you want to know just look it up. "

hmm wrote on Feb 26, 2008 5:16 AM:

" Id like to know how many policy holders they had 4 years ago compared to now. "

Momma Jes wrote on Feb 25, 2008 11:13 PM:

" Usually the complainers are hot on the trail of what State Farm is doing wrong. Generally articles concerning State Farm give talent to those who hate their job and have nothing to do but bash their employer. I, however, value and appreciate State Farm for their values to family and covering people with a cloak of help in times of need (death, car accidents, home fires, and the list goes on and on) but more worries get spent in the amount that Mr. Rust gets paid in a raise. However, it DOES come back to the customer, who might be that upset employee, in LOWER insurance rates. Thank you for publishing a worthwhile article. Kudos to State Farm. "

Wow. How impressive wrote on Feb 25, 2008 9:41 PM:

" Big deal. My homeowners and liability policies went up far more than the reduction in auto rates plus the measley dividend they paid. "
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