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Yes, Allstate raises rates frequently. The average Allstate car insurance premium rose by 2.8% from 2018 to 2019, and Allstate rates have increased by around 25% since 2012. Individual Allstate premiums might increase upon policy renewal because of a driver’s actions, like getting into an at-fault accident or receiving a speeding violation. However, Allstate also raises rates due to factors beyond an individual driver’s control, like inflation, the company’s finances, and the country’s weather.
Outside forces that have contributed to increasing Allstate rates include a rise in storms and flooding, changes in government regulations, and more frequent, costly claims. However, it’s important to note that every insurance company is subject to these influences to some extent. That helps to explain why the average car insurance premium, among all companies, has increased by 52.2% since 2010, even though cost of living has only increased by 17.2%.
Some rate increases seem unique to Allstate, though. Several regional newspapers have pointed out specific instances of Allstate increasing rates, such as in Los Angeles in 2023, Georgia in 2016, and Illinois in 2014 and 2019. Allstate was also accused by one journalistic non-profit of overcharging based on algorithms that determine how much people are willing to pay.
How to React If Your Allstate Rate Increases
Although Allstate rate increases might give you pause as a customer or prospective buyer, the base premium amount should only be one factor that you consider, along with coverage options, discounts and other features. For instance, Allstate offers benefits that other companies might not, including optional add-ons like new car replacement and a safe driving bonus. In some states, you can even pay a small fee in order to be covered while driving for a rideshare company like Lyft or Uber.
In addition, Allstate suggests several ways to decrease costs if your rate suddenly increases. You can adjust your coverage options, listed drivers, and deductible, for instance. You can also focus on safety, whether in your driving habits or regarding special features like anti-theft devices or anti-lock brakes. Plus, your mileage, your car make and model, and whether you park in a safe garage or on a riskier street can affect rates and might be within your control to change.
Finally, if your Allstate rates increased recently, check out WalletHub’s cheap car insurance guide to help decide if switching insurers is worth your while. It’s always worth comparing quotes to be sure you’re getting the best deal for the coverage and customer service that you want.
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Allstate offers pay-per-mile insurance through a program called Milewise. Allstate’s pay-per-mile insurance program works by charging customers a base amount plus a small fee per mile driven, making it a good choice for low-mileage drivers. For instance, Allstate provides an example rate of $1.50 per day plus 6¢ per mile.
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Allstate is so cheap because the company offers a wide variety of discounts that almost anyone can get. A minimum coverage policy from Allstate costs an average of $48 per month, and Allstate premiums can be made even cheaper by taking advantage of discounts such as paid-in-full discount and anti-theft... read full answer
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