Allstate and State Farm have continued to pursue significant auto insurance rate increases as they react to inflationary pressures and increases in auto accident severity.
Allstate, which reports its monthly auto rate actions on its investor relations page, said it implemented rate increases of 14.5% across eight locations, resulting in a total brand premium impact of 3.2%.
Since the start of 2022, the carrier has implemented 72 rate increases averaging 10.3% across 51 locations. The increases totaled $777 million in August and $2.5 billion year-to-date, according to Jess Merten, chief financial officer of Allstate Corp.
In Illinois, Allstate raised its auto insurance rates by 14% in August, far outpacing the 8.3% increase in the national Consumer Price Index over the past year. State Farm also raised its rates for Illinois drivers by more than 8%, the Chicago Tribune reported.
‘We evaluate the frequency and severity of accidents at a state level,’ Allstate spokeswoman Mallory Vasquez told the Tribune. ‘Beyond inflation, some of the factors driving losses up in Illinois are the same things impacting the rest of the country: miles driven have gone back up to pre-pandemic levels, vehicle collisions are more severe, speed of driving, distracted driving. Illinois is one of the top states for vehicle theft.’