Allstate Raises Auto Insurance Rates 25-58% for Nearly Half of GA Customers

May 23, 2016

  1. Brian Anderson
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    Brian Anderson Executive Editor

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    From WXIA (“11Alive”) in Atlanta:

    A proposed rate hike for automobiles insured by Allstate will go in effect May 22, the [Georgia] Insurance and Safety Commissioner's office says.

    According to the Commissioner's office, Allstate is expected to increase the rate by 25 percent, but warned that that figure is only an average for the entire state. The agency says some customers should be prepared to see a rate change as high as 58.3 percent.

    After the hike was proposed, the company told 11Alive they considered the rate increase carefully, and that it would impact less than half of their customers in Georgia.


    From Allstate: “We work closely with state departments of insurance whenever we adjust our rates, and look forward to a continued dialogue with the Georgia Department of Insurance. As is industry standard, changes in market conditions require that we set rates that are adequate for the coverage we provide. Increases in the number of miles driven, the amount of traffic fatalities, and the costs associated with repairing vehicles have caused the insurance industry to experience a significant increase in both the number of claims received as well as the cost associated with settling these claims.”

    Allstate insurance rate hike goes into effect Sunday | 11alive.com

    Imagine there might be quite a few calls for rate quotes when the next statements with the increases start hitting mailboxes.
     
  2. 1manshow
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    1manshow Guru

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    Smart marketers will be taking Allstate to the woodshed on this one. A little jealous that this isn't happening in my state.;)
     
    1manshow, May 24, 2016
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  3. abkclauren
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    abkclauren Expert

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    Technically a good thing for me business wise and doesn't affect my homeowner's insurance but it's only their newest book of business only a few years of business on the books. Something tells me their increase might be legit if the loss numbers prove true.
     
  4. Lopezshow
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    Lopezshow Expert

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    I wonder if they are taking rate in CA because right now their rates are great very hard to beat.
     
  5. rob53
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    rob53 New Member

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    Allstate has raised their rates in Maryland for several reasons.

    Unemployment falling - more ppl driving on roads which leads to more accidents/claims
    Due to the fall in unemployment more ppl are buying new cars which cost more to fix/replace
    Lower gas prices - again more ppl driving and more accidents

    Allstate is usually the first company to raise rates. Other insurers will follow with rate hikes as well.
     
    rob53, Jun 1, 2016
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