Why Are Insurance Rates Going Up?

Sometimes, even if you haven’t had an accident or filed a claim, your insurance premiums may go up. Here you'll find reasons your premiums may change and suggestions for what you can do about it. Talk to your Agent about specific ways you can lower your insurance costs. 

External factors

Unfortunately, there are certain factors that affect insurance premiums that are

out of anyone’s control:

• Increasing occurrences of catastrophic weather (e.g., wind, hail, heavy snow and ice)

  has resulted in a rise in total claims paid out for damages

• Rise in home, auto and medical costs for claims

• Government regulation of insurance

• Insurance fraud (e.g., increases in claims paid out, legal fees)

History

There are many factors that are considered when increasing premiums. Your policy is reviewed, the policy coverage, prior claims, the type of claims you’ve made and how long you’ve been with us.

What you can do:

Talk to your Allstate Agent about your individual case to discuss why your insurance costs have risen and what you can do about it.

Insurance scores

Your insurance score is a snapshot of how safe or risky you are to insure, and most insurance companies use it to help figure out your premium. Our use of credit information enables us to offer lower premiums to more customers and allows us to cover more drivers and homeowners.

Different from your credit score, Allstate calculates your insurance score using your credit history along with the following factors:

• Your overall payment history and length of credit history

• Your current balance on each account compared to your highest balance

• Number of credit accounts and inquiries into your credit history

• Bankruptcies, foreclosures and other collection activity