State Farm secures largest homeowners rate increases in Q2 2025

State Farm Mutual Automobile Insurance Co. secured eight of the 10 most notable calculated premium changes by US homeowners insurers in the second quarter, according to an analysis by S&P Global Market Intelligence.

State Farm's most significant rate increase was secured in Illinois by subsidiary State Farm Fire and Casualty Co. with a rate change of 27.2% resulting in a calculated premium change of $522.8 million. This rate change was one of only two double-digit rate increases for State Farm in the Prairie State since 2010. The rate increase took effect July 15 for new business and is set to take effect by Aug. 15 for renewal business. It is expected to impact about 1.5 million policyholders.

The same subsidiary secured other notable rate increases of 21.9%, 17%, 12.3% and 14.8%, with corresponding calculated premium changes of $234.6 million, $114.5 million, $106.4 million and $101.7 million in Minnesota, Michigan, Colorado and Tennessee, respectively.

The Michigan change is expected to impact just over 717,000 policyholders, the most impactful among the four rate increases.

While The Allstate Corp. dominated the chart for the top 10 rate increases by calculated premium change in the second quarter of 2025, Liberty Mutual Holding Co. Inc. made the list with two notable rate increases. Liberty Mutual unit American Economy Insurance Co. received approvals for a 16.2% rate increase in Texas and a 12.9% hike in Colorado, leading to a calculated premium change of $100.1 million and $60.4 million, respectively. These rate changes have already gone into effect, with the increase in the Lone Star State impacting over 139,000 policyholders and the increase in Colorado impacting close to 94,000.

All figures listed are based on as-reported numbers filed in the rate filings of each subsidiary in each state. The calculated premium change is not a final projection of the additional premium the insurer may receive in the upcoming year. The calculated premium change is reported by each insurer to reflect the most impactful premium changes based on the combined impact of the percentage change and the amount of business it affects. Changes to the insurer's policy mix or policies in force are not factored into the analysis.

US states employ a variety of rate regulation mechanisms, including prior approval, modified prior approval, file and use, as well as use and file. Some states do not require explicit regulatory approval prior to insurers using new rates.

This analysis is based on when rate filings are "disposed" by state regulators and does not take into account when those new rates became effective for new and renewal businesses. In some instances, a new rate may have been in effect prior to the month the filing was approved by the regulator.

Texas, California approve high rate increases

Among the 12 homeowners insurers receiving rate increases of 20% or more on books of business of at least $20 million in the second quarter, three were approved in Texas while two were granted by California. State Farm, The Travelers Cos. Inc. and Spinnaker Insurance subsidiaries each received two of the highest rate increases on the list.

QBE unit Praetorian Insurance Co. secured the largest notable rate change in the first quarter: a 34.4% approved rate change with a calculated premium change of $29.3 million in the Lone Star State. This rate change will impact over 45,000 policyholders.

– Learn about State Farm's rate performance over the last few years. – Download a template to analyze rate changes for selected entities, states or type of insurance over a selected period.

Spinnaker Insurance unit Spinnaker Insurance Co. secured the second-highest rate increase of the quarter, a 31.4% increase with a calculated premium change of $41.8 million. This change is reported to impact over 53,000 policyholders in Texas.

Travelers and State Farm, which ranked seventh and first by market share among homeowner insurers in the first quarter, had the fifth and sixth most significant rate increases on the most recent list, respectively. Secured by Travelers unit Travelers Personal Insurance Co., the 28.1% rate change approved in Oklahoma translated into a calculated premium change of $13.1 million.