Paying more for insurance – or anything, really – is never fun. It might be especially confusing when your rates go up even when your driving record is clean, and you've made all your payments on time. But sometimes outside factors can have a big impact on auto and home premiums for everyone.
When inflation is high, it costs more to repair or replace damaged homes, cars and personal items. Other factors like labor shortages, supply chain disruptions, extreme weather events and spikes in the number of accidents can also raise costs. When conditions like these make it more expensive to pay claims, insurers often need to increase rates.
Here's a closer look at the many factors insurance companies use to determine auto and home insurance rates, and the steps you can take with Allstate® to reduce your costs.
Reasons car insurance rates go up
Insurers weigh several factors when it comes to car insurance rates. Common among them are speeding tickets, DUIs and moving violations. But beyond that, insurers also consider specific risks like the rates of accidents, vandalism and theft in your area, which result in higher claim rates.
All these factors help insurance companies understand how likely you are to file a claim. Now that you understand why auto insurance rates can increase, here are a few ways Allstate can help you lower your premium.
Bundle with Allstate¹
Save up to 25%² when you bundle auto and home with Allstate. You could also save by bundling auto with condo, renters or motorcycle. On top of saving money, you'll also be able to access all your policies with a single login on the Allstate mobile app, where you can review coverages, make payments and more.
Enable telematics to drive down your costs
Telematics systems allow you to share your driving information through the Allstate mobile app or a device that plugs into your vehicle. Using telematics, you can get a price that's based on your driving, which allows you to control your costs. Allstate uses telematics to help you save in two ways: Drivewise® and Milewise®.
- Enroll in Drivewise
Drivewise³ helps you save based on your safe driving habits. You could even earn savings just for activating Drivewise through the mobile app. Safe speeds, safe stops and safe driving hours are just a few of the ways you can keep insurance costs down.
- Switch to Milewise from Allstate
Milewise⁴ lets you pay a daily base rate plus a per-mile rate when you drive. It's perfect for people who work from home, have short commutes, are stay-at-home parents or are retired. Milewise also gives you more transparency and control over how much you pay for insurance, allowing low-mileage drivers to save 50%⁵ over traditional insurance policies.
We can help maximize your savings on auto
If you're an Allstate customer, we're always standing by to help you get reliable auto coverage at the best possible premium. Contact your agent or call 1-800-ALLSTATE to talk about money-saving adjustments to your coverages, deductibles or other features.
Reasons home insurance rates go up
Home insurance covers a lot more than the house itself. It also helps protect the things you own, your personal liability and detached structures like garages and sheds. That's why many, many factors are considered when calculating a homeowners rate.
Like car insurance, home insurers also weigh factors unique to the region you live in that could increase the likelihood you'll need to file a claim. These include weather conditions, the risk of wildfires, vandalism, burglary and the cost of building materials and labor.
In fact, these factors resulted in an increase in average annual home insurance premiums to $1,398 in 2021, according to the Insurance Information Institute. Fortunately, there are ways you can reduce some of these risks and lower your costs.
Install safety systems
Equip your home with theft or fire protection devices and you could land a discount. Safety systems like burglar alarms and emergency sprinklers can help increase your savings.
Set up automatic payments
Set up auto pay and save up to 5% with the Allstate Easy Pay Plan® discount. Easy.
We're here to help you save on homeowners
If you're an Allstate customer, we can help you make sure you're getting the reliable protection you need at the best possible rate. We'll look at your policies and talk about adjustments to your coverages, deductibles or other features that could save you money. Contact your agent or call 1-800-ALLSTATE to review your policy today.