Illinois senator seeks review after State Farm rate hike

Illinois Sen. Michael Hastings, a Frankfort Democrat, is calling for additional consumer protections after State Farm raised Illinois homeowner insurance rates by 8%, WAND reported.

The increase took effect at the beginning of October for new policies. It will apply to other customers when their policies renew beginning Dec. 1.

Hastings seeks state review

Hastings said lawmakers should consider legislation directing the Illinois Department of Insurance to review the calculations behind increases of 8% or more during the previous three years.

He said State Farm raised rates by 12.5% in 2024, 27% in summer 2026 and 8% in fall 2026. Hastings also raised concerns about homeowners receiving nonrenewal notices after making a claim.

Illinois has prohibited insurers from canceling coverage in the middle of a policy term, but that protection does not prevent a company from declining to renew a policy. Homeowner and auto insurance reforms enacted in 2026 are scheduled to take effect July 1, 2027.

State Farm points to claims and repair costs

State Farm said the latest increase would add about per month to an average homeowner’s bill. The company cited more frequent severe weather in Illinois and rising repair costs.

The insurer said it paid in claims and expenses for every in premiums collected in Illinois during the past three years.

The Illinois Insurance Association urged lawmakers to allow the recently enacted reforms to take effect before adding regulations. Executive Director Bob Stefanski said additional rules would not prevent severe storms or reduce inflation-related repair costs. The association said Illinois households spend less per year on home and auto insurance than the national average.