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

The company looks at past claims experience in the state and predicts future losses. Since Illinois had a decline in the number of claims filed, the company was able to give the reduction, Lundberg said.

Premiums for the collision and comprehensive coverages are decreasing the most, the company said, while the cost of the liability and medical payments coverages will go up for some and down for others.

The overall premium changes for individual motorists will vary depending on several factors, such as the coverages they carry, the discounts for which they qualify, where they live, the kind of car insured, who drives it and how much it is driven.

After the rate change is implemented, State Farm's overall rate level in Illinois will be 23.9 percent lower than it was 12 years ago, the company said.

State Farm customers in Illinois aren't the only ones in the nation who will get a break on their auto insurance policies. The company has reduced rates in 30 states throughout the nation, Lundberg said. Connecticut and Michigan customers of State Farm received the largest reductions at 10 percent.

"It varies from state to state; not every state will see a reduction, but a lot of states will," Lundberg said. "Most states in the Midwest did see some sort of reduction."

State Farm reduced its auto insurance rates in Illinois slightly last October - a 0.3 percent reduction. The last substantial auto insurance rate reduction for State Farm customers in Illinois was March 2005 when the company reduced rates by an average of 5 percent, Lundberg said. Nationwide, from 2004 to 2006, the company reduced auto insurance rates by an average of 10.3 percent.

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