Article: State Farm auto rates on rise; Second hike since August in store as medical costs escalate.(News)

Byline: STEVE DANIELS

State Farm Insurance Cos. is hiking auto rates in Illinois for the second time in four months, as claim payments escalate.

The Bloomington-based company will impose a 3.2% increase effective Dec. 29, a spokeswoman says. That follows a 3% jump in August, State Farm's first boost for Illinois auto policies in five years. State Farm has raised auto rates by more than 1% in 16 other states this year, in step with hikes made by other insurers.

A spokesman says State Farm's liability payouts climbed as catastrophe losses and medical costs surged. That contributed to widening underwriting losses after a series of rate cuts in ...

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