Why Are My Allstate Insurance Rates Increasing?

Insurance rates are increasing almost everywhere and almost with every company. For Vermont residents who currently have Allstate coverage, however, the increase may be especially noticeable. Here’s why Allstate rates are going up, and what you can do about them.

TSP Allstate Insurance Rates

Why is Allstate Increasing Insurance Rates?

Most insurance companies are raising insurance rates

Rising insurance rates aren’t unique to Allstate, as most insurance companies are assessing higher premiums for auto insurance and homeowners insurance.

Auto premiums have increased an average of 11% in 2023 (through mid-August), with increases in Vermont being comparatively low at a 6.3% average. Even 6.3% on an annual premium that’s hundreds or thousands is no small amount, though. That’d be another $63 annually on a $1,000 yearly auto premium, and it doesn’t include any homeowners increase.

Premiums for homeowners policies jumped an average of 21% nationwide from May 2022 to May 2023. Vermont is again below average, with rates rising less than half of the national average. The 10% average increase that Vermont residents have seen is no small amount when policies regularly cost more than $1,000 per year, though.

These increases are nationwide and reflect what most insurance companies are doing. At a time when almost all companies are raising rates, however, it’s important to find a company that still provides solid protection at an affordable price.

TSP Allstate Insurance Rates

Allstate has increased rates substantially

When compared to other insurance companies’ rates, Allstate’s generally aren’t the smallest increases.

Allstate auto insurance rates increased 11.1% on average in 2023, and that follows a 14.5% increase in 2022. That accounts for more than a 25% increase in just two years.

In comparison, many insurance companies have instituted lower rate hikes during 2022-2023: Nationwide (18.9%), American Family Insurance (19.9%), Travelers (21.8%), Liberty Mutual (22.7%) and Progressive (19.4%) are just some companies with lower hikes.

Homeowners rates have also gone up for policyholders with Allstate. While the homeowners and auto increases in Vermont normally aren’t as high as in other states, they’re still notable when on a bill that must be paid.

These rates come as insurance companies face higher payouts

Such rate increases are largely in response to higher payout claims that insurance companies across the industry are facing. There are multiple factors contributing to this:

  • Inflation is contributing to higher labor and material costs for repairs
  • Increasing medical costs are contributing to higher medical bills for injuries
  • More devastating natural disasters are increasing home damage claims
  • Driving more miles is increasing the number of auto collision claims

Allstate’s payouts in just the first two months of 2023 show just how much insurance claims are costing companies. The company’s catastrophe losses alone totaled $211 million in February alone, and $518 million in January and February 2023. That’s just catastrophe property damage claims, and doesn’t include auto accident, personal injury or many other claims that are paid out.

TSP Allstate Insurance Rates

Compare rates with an independent insurance agent

If you’re with Allstate and seeing your rates increase, know that policyholders aren’t without options. Policyholders are able to switch insurers when it makes sense to do so.

An independent insurance agent doesn’t work for any one insurer, but for the policyholder themselves. Independent agents can check multiple policies from different insurers, basing coverage on either what’s in place or what a policyholder wants. Looking at options from different insurers makes it easy to see which one offers the best rates on the protections that are required.

To speak with an independent agent in Vermont, contact us at T.S. Peck Insurance. We’ll be happy to help you compare rates from several insurers in the state.