The best way to find out why your Allstate car insurance rate went up is to contact your insurance agent for more information. From there, you can determine if you can take any actions to lower your Allstate car insurance premium—or comparison shop to see if you can find a better deal elsewhere.
Few things are more frustrating than watching your car insurance
rate go up—especially if you can’t pinpoint the reason why. And since car insurance rates are determined by such a complex combination of factors, it can be challenging to find answers. But if it’s any consolation, if your car insurance coverage has gotten more expensive, you’re far from alone. Average car insurance rates in general are returning to pre-pandemic levels, and factors affecting Allstate specifically may also have an impact on your premium going forward.
To help you get closer to finding your answers, here are some reasons Allstate customers may see higher insurance costs, as well as some tips for securing a lower rate.
4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars4.7/5 app rating | Trusted by 5M+ drivers How to find out why your Allstate car insurance rate went up
If you notice a questionable change in your insurance rate, the first thing you should do is contact your Allstate agent to ask what might have changed.
They should be able to give you more information about the influencing factors or correct any errors on their end, and they may be able to advise you on how to secure a lower rate in the future.
Reasons Allstate may have increased your car insurance rate
There are a number of reasons why car insurance rates rise. Here are some of the most common reasons you might see insurance rate increases from Allstate when your policy renews.
You recently made a claim
Car insurance rates are largely determined by your level of risk to insure—and 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.
You have violations on your driving record
If you received one too many speeding tickets, 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. The more serious the offense, the higher the rate hike will typically be. You were involved in an accident
If you were involved in an accident that wasn’t your fault, it’s not as likely that you’ll see your insurance rates go up, but if you were at fault, that can be an entirely different story. At-fault accidents, especially those that result in significant amounts of property damage or injuries, 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. You made changes to your coverage
Adding additional coverage types
and raising limits can protect your finances in important ways, but they can also make your premium more expensive. If you lowered your deductible amount
so that your insurance coverage would kick in earlier, this could result in a higher rate as well. External factors beyond your control
Unfortunately, not all factors are in your realm of control when it comes to determining car insurance rates
. The following elements can all have an effect on your premium: An increase in local traffic, overall claims, or accidents
Rising car theft occurrences where you live
Even if you moved to another zip code in the same general area, it’s possible that you might see your insurance rate change at least slightly if the influencing factors are different enough.
Planned auto rate increases
In 2022, Allstate announced it would implement numerous rate increases across its properties, citing inflation and losses associated with claims as the reason for doing so, some of which were implemented in September and October of 2022. Rate increases across 64 locations averaged about 9%
. Some Allstate policyholders may have seen even higher rate spikes than others depending on their location. In an extreme example, Georgia’s state insurance commissioner
criticized Allstate for allegedly taking advantage of state law loopholes to raise their statewide insurance rates by 40% in the 2022 calendar year. What factors affect Allstate insurance rates?
Here’s a look at some of the many complex factors that play a role in determining your Allstate car insurance rate.
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. It’s worth noting that some states make it illegal for car insurance companies to raise rates after an accident that wasn’t your fault.
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. If your driving habits haven’t changed much, it might be worth checking whether the mileage that Allstate has on record for you is accurate.
Your driving record
A clean driving record
will make it easier for you to score a lower car insurance rate. Tickets, accidents, moving violations, driver’s license suspensions, and driving record points are all factors that can hold you back from saving on your premium. Your vehicle type
Your car’s make and model will have an impact on your auto insurance rates. New cars with high values typically command higher insurance costs, but other factors like excellent safety features can also bring rates down.
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.
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.
MORE: The 10 most expensive states for car insurance
How to lower your Allstate car insurance rate
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.
Update your coverage amounts
Coverage needs will vary from vehicle to vehicle and driver to driver. If you’re looking to lower your insurance premium, it’s worth taking another look at your policy to decide whether you could forego some of your coverage or lower your limits.
If your car is old enough and its value has fallen below the cost of your premium, it may be worth considering whether to drop full coverage on your car
to save money. Adjust your deductible
Car insurance deductibles
commonly range from $0 to $1,500. The lower your deductible, the higher your insurance rate will typically be. On the flip side, setting a higher deductible can help lower the cost of your premium—but you’ll also want to make sure you can cover the amount you set out of pocket in the event that you do need to make a claim.
Take advantage of available Allstate insurance discounts
Just a sampling of available discounts from Allstate include
Multi-policy discount
(such as homeowners insurance or renters insurance)Deductible rewards for going accident-free
Clean up your driving record
How long certain offenses stay on your record will vary depending on your state and the applicable offense. While it may take time to correct course, driving more responsibly after a violation can help you clean up your driving record
and earn lower car insurance rates in the future. Check your credit report for errors
Unless you live in a state that outlaws credit report checks by car insurance companies (like California, for example), any lingering errors on your credit report could have a negative impact on your car insurance premium. Working with the creditor to correct information could help you get a more ideal rate from your provider.
Enroll in Drivewise or Milewise
Allstate offers two telematics program options 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.
Drivewise
evaluates safe driving factors, like average speeds, how gradually you stop, the time of day you drive, and more—if the data suggests you're a safe driver, you might see a lower premium. It can also give you insight into how you could improve your habits to drive more safely.Milewise
, on the other hand, monitors how many miles you drive to determine your rate. According to Allstate, infrequent drivers can save as much as 50% on a premium when compared to a traditional car insurance policy, making it an ideal option if you work from home or have a short commute.Comparison shop to find a better rate
If you’re still not satisfied with your new Allstate insurance rate, use an insurance quote comparison tool to shop around for better car insurance quotes
. It can help you gauge whether your new Allstate rate is still your best bet compared to other options out there, or it can point you in the right direction toward a more affordable policy. "I was paying roughly $180 a month for insurance, but Jerry
hooked me up with an Allstate full coverage plan for only $89! I’m so glad I trusted Jerry to find me a better plan.” —David A.
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