July 20, 2011
By: Carrie Van Brunt-Wiley
Policyholders across Illinois have started to see their rates on auto and home insurance from Allstate climb.
The company announced 80 percent of the state's 475,000 policyholders will see their rates increase 2.5 to 3 percent in a measure effective July 11. That increase jumps to 9 percent for the roughly 105,000 consumers who started their auto and home insurance policies after March 23, 2009, a company spokesperson said. Severe storms across the Midwest contributed significantly to the rate hikes, and the company's representatives add national price increase may be in the offing to mitigate $2.3 billion in catastrophe losses in the second quarter.
"Costs associated with paying homeowners claims continue to increase," Allstate spokeswoman Shaundra Turner told the Chicago Sun-Times. "Factors such as the number of claims, the amount of claims and weather over the past several years all result in these increases in cost. Our priority is to make sure that we are operating our business responsibly in order to support all of our insured drivers and homeowners who may rely on our claim and recovery services in the future."
At the same time, consumers may be able to defer the costs of those increases by taking advantage of auto and home insurance savings measures. New and existing discounts have been enhanced to offer better savings for Allstate customers, according to reports.
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