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Exclusive-agent personal lines giant State Farm Insurance Co. announced that it will cut Illinois homeowners and auto insurance rates, effective Nov. 1 for new insureds and renewals.

Homeowners insurance premiums will see an average 3.7 percent cut, while auto insurance rates will fall only slightly at 1 percent, according to the Associated Press.

This contrasts to national increases expected to be 2.8 percent for homeowners and 3.5 percent for auto insurance, well down from the double-digit increases seen during 2002 at the height o the hard market, and may put more pressure on independent-agency carriers to lower premiums in order to compete on volume.

Topics Illinois