Major insurer
Allstate has petitioned the Illinois Department of Insurance to hike its auto insurance rates by 5.9%. The rate increase is expected to affect 70% of its auto policy holders.
The company’s premium hikes have prompted many customers to leave the insurer as they seek pocket friendly alternatives. Allstate has been raising premiums since 2015.
Local trade publication Crain’s reported that the Northbrook based insurer pushed rates up by 6.9% last year and by a total of 8.6% in 2015 following a couple of separate increases.
These increases appear to run in contrast to sentiments from Allstate president Matt Winter during a recent conference call in which he commented: “To the extent we’re able to keep more moderate rate increases, at this point on, we believe customer disruption will be mitigated and we’ll be able to hold on to more customers.”
The report cites a higher number of vehicular accidents, rising repair and medical costs, as well as emerging banes such as distracted driving and more motorists taking to the road as the cause of the increases.
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