State Farm to raise auto rates

State Farm Insurance has filed for a statewide 3 percent increase in auto insurance rates, citing increased costs in paying claims. The insurer said the new rates will go into effect for new and renewal policies with State Farm Mutual - the company's primary auto insurance subsidiary - beginning on Aug. 3.
"Costs associated with providing auto insurance in Texas have trended upward recently," said Kevin Davis, a spokesman for the company. "This rate adjustment is necessary for State Farm to remain competitive while absorbing rising costs and maintaining its level of risk."
State Farm Mutual, which insures about 3 million vehicles in Texas, last raised rates in October by an average 2.4 percent. Average increases in Dallas County will range from 0.5 percent in the northwestern part of the county to 4 percent in south central areas. The average increase in Collin County will be 3.1 percent.


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