State Farm Increases Insurance Rates by 8% for Illinois Customers

Homeowners in Illinois will see steep insurance rate increases throughout the fall as State Farm announced an average 8% increase for customers in the state.The new rates took effect on Oct. 1 for new customers. Existing customers will see the increases on Dec. 1.While California wildfires and coastal hurricanes are often on the news, the Midwest is facing an increase in extreme hailstorms, which are jacking up insurance premiums.In 2025, the United States accumulated $52 billion in insured losses from severe convective storms, according to the Insurance Information Institute. Convective storms include severe thunderstorms and other weather capable of producing large hail.A new study published by Nature in May shows that there could be a 42% increase in global hailstorm-induced damage potential by the late 21st century.The cost to repair damages has increased as well, as building materials have become more expensive. Imported materials, as well as the fuel and oil needed to transport them, have all seen price increases, adding up to an average 6.7% increase in material costs.These factors have contributed to State Farm’s decision, according to a statement shared with Realtor.com®.“...