One of California's largest auto insurers hikes prices 30%
After pausing its direct sale of auto insurance policies in California, Allstate is back, but with higher prices for customers.
Allstate’s sale of auto insurance policies, via its website or phone, resumed early this month but with an average rate increase of 30%. Some people will see increases as small as 10% and others will be hit with rates going up as much as 55%, according to a California Department of Insurance spokesperson.
Allstate is the third largest insurer for private passenger auto physical damage and private passenger auto liability in California.
SNIP
Allstate said its payments to customers recovering from accidents and disasters significantly increased over the past few years, and “we need to adjust rates to reflect the cost of providing the protection our customers depend on.”
Link (paywall): https://www.sfchronicle.com/climate/article/allstate-car-insurance-18665199.php
Highlights, from the link:
• State Farm Auto is raising rates 21% starting this month, according to the San Francisco Standard.
• In April, GEICO Auto will also increase rates 12.8%, the Standard reported.
• Overall in California, the average annual car insurance premium went up about 18% from 2023 to 2024, according to Bankrate.com.
---------------------------
"We need to adjust rates to reflect the cost of providing the protection our customers depend on."
Bullshit. Try "we need to adjust rates to maintain the quarterly dividends our shareholders depend on."
= new reply since forum marked as read
There's no evidence cited in the article to support that claim. Do insurance divisions operate autonomously? Or is it one big bottom line?
Allstate DID suspend the selling of new homeowner policies in the state last summer. They could just as easily raise rates on existing homeowner policies to cover losses in high-risk fire zones.
This will put more vehicles into the used car market...
No bus service in my city.
How are students, seniors and other low-income people to travel?
Uber, etc. drivers are hurting but that does not make rides affordable.
