Posted on 12 Jan 2012
Homeowners insured with Allstate Corp. will soon be hit with rate increases of as much as 10 percent, the company said Wednesday.
Rate increases for renewals and new business will range from 4 percent to 10 percent annually, which translates into monthly increases of $4 to $9, effective March 26, said spokeswoman Shaundra Turner.
The rate hike is due to increased claims for water, wind and hail damage, Turner said.
Northbrook-based Allstate, the nation’s largest publicly held personal lines insurer, joins other insurance companies in raising rates in the past year amid higher industry catastrophe losses, which hit $35.9 billion nationally in 2011. That compares to an average $23.8 billion loss for 2000 to 2010, according to the Insurance Information Institute.
Bloomington-based State Farm, which insures one of every three homes in Illinois, raised its rates an average of 6.7 percent in Illinois last year and an average 3.6 percent nationally. State Farm declined to discuss whether it plans to raise rates this year.
To reduce costs, Allstate advised consumers to consult with their agents, consider raising deductibles and to take advantage of discounts. By insuring their automobiles as well as their homes with Allstate, customers can get a 30 percent discount, Turner said.