While the number of claims fell by 1.4 percent in 2012—the first decline since 2010—the costs of settling dog bite claims continued to rise, by 1.2 percent, last year, according to an analysis of homeowners insurance data by the III. The average cost paid out for dog bite claims was $29,752 in 2012 compared to $29,396 in 2011. State Farm identified the top 10 states for dog bite claims paid with California and Illinois leading the pack. (See list below.)