Global Commercial Vehicle Fleet Insurance Market 2022-2028 - InsuranceNewsNet

Allstate auto insurance rates jump 14% in Illinois. State Farm is up over 8%. Both companies say inflation is to blame. [Chicago Tribune]

Allstate raised auto insurance rates by 14% in Illinois Last month, it significantly outpaced the national average and inflation rate. state farm He wasn’t far behind, with his rates up over 8%. Illinois drivers in August.

The average increase in Allstate’s premium, announced Thursday, was about 3.2% across the US weaccording to Northbrook– based insurance company.

For the year, Allstate raised auto insurance rates by 26% for Illinois Drivers, well above the national average by about 10%, a spokeswoman Mallory Vasquez He said in an email. With CPI up 8.3% through August, inflation alone doesn’t represent a sharp rise in interest rates at Allstate Illinois and other countries.

“We are evaluating the frequency and severity of incidents at the state level,” Vasquez said. “Other than inflation, there are some factors that have led to higher losses Illinois It’s the same things affecting the rest of the country: miles are back to pre-pandemic levels, vehicle collisions are more serious, driving speed, and distracted driving. Illinois It is one of the best vehicle theft cases.”

Other states that saw above-average price hikes by Allstate in August include New MexicoAnd the TexasAnd the MassachusettsAnd the New HampshireAnd the OregonAnd the ArizonaAnd the Pennsylvania And the FloridaThe company said.

state farmAllstate and Progressive – the three largest auto insurance companies in the world Illinois All requests to raise prices have been submitted to the state Insurance Department This year, a dramatic turnaround from the cuts and price cuts that have been rampant during the pandemic lockdown in 2020.

Bloomington-Based on state farmZad, the state’s largest auto insurance company Illinois Insurance rates increased 8.4% last month, which followed a 3% increase in June. in March , state farm Implemented a 4.8% increase in Illinois drivers.

in 2020, state farm It cut auto insurance rates in the state by 13.7% as many drivers parked their cars at the start of the COVID-19 pandemic. in February 2021And the state farm Reverse course, raise rates by 4.2% and take a “calculated approach” to increase rates, state farm the spokeswoman Jenna Morse Fisher He said in an email.

“As more people are on the roads, we are seeing an increase in claims,” Morse Fisher said. “Car claims costs are exacerbated by record inflation and supply chain disruptions. All of this has increased the cost of labor and materials, which translates into higher auto repair costs.”

Similarly, Allstate released about 1 billion dollars At discounts for auto policy holders across the country at the start of the pandemic, interest rates are cut in Illinois About 5% in January 2021. But Allstate started raising rates again last September, and had a big hit in January when it applied for a 12% increase, essentially canceling out rate cuts from the past two years. With the August increase, Allstate insurance rates are well above pre-pandemic levels.

Nationwide, Allstate . compiled 2.5 billion dollars The company said its auto insurance premiums have increased since the beginning of the year.

Car insurance rates could go up in the future. June report by Standard & Poor’s Capital IQ “Caught up in the impact of inflation on vehicle repair and replacement costs” private auto insurers said they turned into an underwriting loss last year as severe traffic accidents rose. But the report said auto insurers’ “aggressive responses” to rising costs would keep premium growth at “high levels” in 2023.

Another factor contributing to rising insurance rates across the industry is the explosion in catalytic converter thefts, with the valuable pollution control device becoming a growing target for black market resale.

last year, state farm Pay $62.6 million For 32,265 claims for catalytic converter theft, a 13-fold increase since 2019. The pace is accelerating this year, with 50 million dollars It paid 23,570 claims during the first six months, according to the company.

Illinois 3rd place in the nation state farm Catalytic converter claims in 2021, with $3.1 million I paid for 1,985 thefts. In the first six months of 2022, state farm I already paid more in Illinois From the whole last year, with 3.5 million dollars For 1912 theft claim of the catalytic converter.

[email protected]

© 2022 Chicago Tribune. Visit Distributed by Tribune Content Agency, LLC.

#Allstate #auto #insurance #rates #jump #Illinois #State #Farm #companies #inflation #blame #Chicago #Tribune

Leave a Comment

Your email address will not be published.