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Letter to the Editor

State Farm Raises Auto Rates 5.4 Percent in Oregon

SALEM, Ore. -- State Farm Mutual Automobile Insurance Co. said it received approval for a 5.4 percent rate increase, on average, from the Oregon department of insurance, effective Nov. 1.

The increase is the first rise in Oregon auto premium rates for the company since 1996, and it is needed to offset rising costs in medical payments associated with personal-injury claims and an increase in auto repair costs, the company said in a statement. Since 1997, the company has paid dividends totaling $26.5 million to policy owners while reducing its rates 11.3 percent, State Farm spokesman Bryan LaBerge said.

While most State Farm customers will see higher premiums for liability and personal-injury protection, many will also see lower premiums for comprehensive coverage, which include noncollision-related losses such as theft, vandalism and fire, the company said.

State Farm has been raising auto rates in other states as well, including Ohio and Louisiana.

Following rejection of a rate increase in New Jersey, however, State Farm recently said it was suspending writing auto coverage in the state.

State Farm Group is the largest insurer of private passenger auto physical damage in Oregon, with a 20.5 percent market share, according to A.M. Best's State Line Reports.

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