Allstate hits the gas on car insurance rates

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Allstate hits the gas on car insurance rates

Unread postby RatPak11 » Mon May 21, 2012 1:20 pm

http://www.chicagobusiness.com/article/ ... ance-rates


Allstate hits the gas on car insurance rates
By Steve Daniels May 03, 2012

(Crain's) — Goodbye, hometown discount.

Allstate Corp. is increasing car insurance rates in Illinois by 3 percent to 5 percent beginning May 17, according to company filings with the Illinois Department of Insurance. The size of the increases will depend on how long a customer has been with the company.

Coupled with smaller auto rate hikes in Illinois last year, Northbrook-based Allstate essentially has reversed the effects of a special 5 percent rate cut it instituted in 2009 in Illinois. It heavily advertised the cut as a “hometown discount” in hopes of reversing a slide in market share, in part due to cheaper insurers like Washington, D.C.-based Geico, which sells over the Internet rather than through agents.

Coincidentally, though, Geico is also raising auto insurance prices in Illinois. Most of its customers here will see a 2.5 percent rate hike, beginning June 25. For new customers, the new rates will take effect May 10.

Bloomington-based State Farm Insurance Cos., the largest car insurer in the state, cut its auto rates 2 percent in December after a series of increases over the previous three years.

A spokeswoman for Allstate, the second-largest car insurer in Illinois, wasn't immediately available for comment.
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