State Farm Rate Increase

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State Farm of Alabama is no longer basing its prices for home insurance largely on the quality of local fire departments, which will lead to rate changes for many customers.

The company said that while some policyholders could see a price
decrease of as much as 25 percent, others could see their rates go
up by the same amount.

The company said the change came about because fire claims have
fallen in recent years, while other property threats, such as theft, have risen. The company has implemented the new rating system in at least 22 other states.

Good fire departments get low ratings like a two or three, while poor ones get high ratings like 9s or 10s. Lower ratings typically mean lower premiums and vice versa.