Allstate and State Farm, both based in Illinois, are said to be raising their homeowners' insurance rates in the state by double digits. Citing the insurance giants’ respective state filings, a Chicago Tribune report said Allstate’s 12.7% hike is being rolled out this week, while State Farm’s 12.3% increase will take effect on different dates – March 15 for new business; May 15, renewals. In terms of dollar amounts, Allstate’s adjustment will mean an additional $237 per year on top of the average annual premium; for State Farm, around $138. It was noted that, across the country, the cost of home insurance has gone up by 23% since January last year. “Estimated January catastrophe losses of $325 million were primarily driven by two events that comprised approximately 80% of the losses, partially offset by favorable reserve re-estimates for prior events.” In terms of auto insurance rates, Allstate plans to pursue rate increases in 10 states after implementing hikes in California, New York, and New Jersey last December. Allstate CEO Tom Wilson told the Tribune: “We still lost money on auto insurance last year. So, it wasn’t that we were raising the prices and going to the bank.” Original Article can be found here: Allstate, State Farm raising rates by double digits | Insurance Business America (insurancebusinessmag.com) At Anderson Agency Insurance, our role is to educate people about what is going on in the insurance industry. Staying in the know is one was we can help you make informed decisions about your insurance!
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