Why Did My Allstate Car Insurance Go Up?

Your Allstate car insurance rate may have gone up if you recently moved, got into an accident, or due to external factors such as inflation.
Written by Kornelia Drianovski
Reviewed by Kathleen Flear
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Many factors can make your
Allstate car insurance
rates go up, including making a recent claim or post-pandemic inflation. Comparison shopping is one of the best solutions when it comes to maintaining affordability.

Why did my car insurance rates increase?

There are a number of reasons why
car insurance
rates rise. Here are some of the most common reasons you might see insurance rate hikes from Allstate
when your insurance policy renews
:
If you have a history of frequently
filing insurance claims
, you might be considered more likely to file claims in the future and see a rate increase as a result.
If you received one too many speeding tickets and moving violations, or if you were convicted of a more serious offense, like reckless driving or a
DUI/DWI
, you might see your insurance rate rise the next time your policy comes up for renewal.
At-fault accidents can cause your premium to rise considerably—in some cases, by 50% or more. Allstate has optional
accident forgiveness
coverage which will prevent your policy from being surcharged after your first accident—even if you were found at fault.
Adding additional
coverage types
and raising limits can protect your finances in important ways, but they can also make your premium more expensive.
Rising repair costs, an increase in local traffic (and overall claims), and rising car theft occurrences in your neighborhood are all factors that could affect your rate.
In the last year, Allstate announced it would implement numerous rate increases across its business, citing inflation and loss costs associated with claims as the reason for doing so.
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Expert Insurance Agent Insight

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VP Insurance Operations
There are a number of factors driving up car insurance rates currently, most of which stem from the effects of the pandemic. In 2020, the frequency of accidents dropped and most insurance carriers decided to forgo their annual rate increases, which are around 3% each year.

What you can do about it:

The best way to lower your Allstate auto insurance rate depends on the factors that caused your rate to go up in the first place. Here are just a few actions Allstate policyholders can take to carve out savings for themselves on their premiums.

1. Consider switching to a new insurance company 

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If you’re shopping for insurance with
Jerry
, you can adjust your coverage options and compare insurance quotes between different car insurance providers.
This will help you narrow down a few of the best rates for your driving needs and history.
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2. Look at discount options

Consider taking advantage of available discounts from Allstate:
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Safe driving bonus
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New car discount
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Anti-lock brake discount
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Multi-policy discount
(such as homeowners insurance or renters insurance)
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Deductible rewards for going accident-free
Allstate offers two telematics program options–
Drivewise
and
Milewise
–that can help lower your insurance premium. Your mobile insurance app or a device you plug into your vehicle will monitor your driving habits to determine your car insurance costs.

3. Pay your premium in full

Paying your car insurance premium in full can help lower your insurance rate by qualifying you for discounts. It can also reduce administrative fees associated with monthly payments and potentially lead to a more favorable risk assessment.
Additionally, paying in full simplifies the renewal process and eliminates credit checks related to installment payments, which can positively affect your insurance rates.

Other factors that can make your rates go up

Here’s a look at some of the many complex factors that play a role in determining your Allstate car insurance rate:
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Your claims history: You’re more likely to see an increase in your premium if the circumstances surrounding an accident for which you made a claim were within your control.
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Your mileage: Annual mileage is a factor Allstate uses to determine car insurance rates for participants of the Milewise program. This could help you save if you don’t drive often, but if you’re hitting the road more than usual, you might see a higher rate.
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Your driving record: A
clean driving record
will make it easier for you to score a lower car insurance rate.
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Your vehicle type: Your car’s make and model will have an impact on your auto insurance rates.
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Your insurance score: An insurance score, somewhat similar to a credit score, gives providers a sense of your level of risk to insure. Insurance scores are influenced by information on your credit report, including your payment history, the length of your credit history, and whether you have any bankruptcies or foreclosures.
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Your demographics: Factors including your age, marital status, where you live, and more will play a role in how much you’ll pay for insurance.

FAQs

Did Allstate raise rates 2023?

Yes. In August 2023, Allstate implemented car insurance rate increases of
7.0% across 5 locations
, which resulted in a total brand average rate impact of 0.2%. 

Why did my car insurance go up when nothing changed?

Insurance rates can increase due to factors like changes in your car insurance company's pricing, regional risk factors, supply chain disruptions, legal modifications, or even credit score fluctuations, regardless of any changes in your personal circumstances or driving history.

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