NU Online News Service, June 3, 10:01 a.m. EDT

State Farm Insurance Company will raise its auto insurance rates by 2.5 percent in Illinois because of claim costs, a company spokesperson said.

The hike in rates is the third increase in a year for the state, Angie Rinock, State Farm spokesperson, said; the adjustment is for liability only, and is due to the rising cost of claims.

She said at this point in time the company is seeing liability costs rise, but not physical damage costs.

“Our rates are based on our claims experience, and that experience has shown that it’s costing us more to pay those claims,” Ms. Rinock said. “We want to make sure we’re collecting enough premium to pay for the promises we make.”

She added rates are still 17.1 percent lower than they were 14 years ago. She said this can be due to a number of factors, including safer driving and vehicle design.