Allstate Auto Insurance Rate Increase - Should You Take Action?

Several states are weighing their options to take action against Allstate’s proposed auto insurance rate increase.

Insurance Commissioner Ralph Hudgens in Georgia has directed his department staff to start a professional level examination of Allstate’s filing.

He also intends to take all legal measures to protect policyholders.

Allstate’s proposal would raise the average auto insurance rate by 6.9%.

That would add $500 annually to the average premium.

The rate increase would apply to new and existing customers.

It is expected to be in effect from May 22.

Allstate is the nation’s fourth largest auto insurer.

It is based in Northbrook, Illinois and sells policies to about 10 percent of the U.S.

car market.

It offers several different kinds of coverage, including classic car insurance through partner Hagerty.

Its rates are among the highest of the largest insurers, but it has a lower complaint index than most companies.

According to the NAIC, Allstate has a complaint index of 1.41.

Allstate’s July 2022 catastrophe losses included wind and hail.

The losses were partially offset by favorable reserve reestimates.

In addition, non-catastrophe prior year reserve strengthening totaled $411 million.

Allstate’s net written premium increased 15.2% and policies in force grew 1.7%.

The underlying combined ratio was 93.4 in the second quarter of 2022.

The underwriting loss was driven by an increase in catastrophe losses and higher claim severities in the current report year.

The company is facing an increased volume of complaints.

It has received 1.41 times the national average.

Most complaints relate to claims customer service.

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