By Michelle Koetters, The Pantagraph, Bloomington, Ill.

Aug. 13--BLOOMINGTON -- State Farm auto customers won't catch a break on their policy premiums like they have in recent years.

State Farm Mutual Automobile Insurance Co. will increase its liability coverage on automobile insurance policies by 3 percent, effective Aug. 25, said spokeswoman Missy Lundberg.

That increase will cost the average customer $10 for a six-month policy premium, Lundberg said. Some customers might not even notice an increase since individual rates depend on such factors as claim experience, driving record and type of coverage, she said.

In total, State Farm expects to earn an additional $48 million annually from Illinois customers, Lundberg said.

The rate increase comes after State Farm had cut rates by 18 percent from 2004 to 2007, including a 6.1 percent average decline in Illinois last year. Plus, the average premium after this month's increase still will be 11.5 percent lower than the amount customers paid 10 years ago, Lundberg said.

"We're constantly looking at our rates. This year, we do need to raise them," Lundberg said.

Even though State Farm reported record earnings of $5.46 billion in 2007, Illinois -- and its auto line -- is a very small portion of that money, Lundberg said. In determining rates, State Farm looks at individual states and predicts for the future based on past trends, she said.

State Farm has noticed a steady increase in the amount it paid in Illinois auto claims in the past couple of years, which led to the rate increase, she said.

Illinois joins eight other states that also have experienced a 1 percent or more rate increase this year, while 10 states have cut rates at least 1 percent, Lundberg said.

Drivers who want to lower their premiums can follow these tips: drive more carefully, check into multi-line discounts for having different State Farm policies, raise their deductible and adjust coverage amounts if applicable, Lundberg said.

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