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 some of the factors insurance companies typically use to determine auto and home insurance rates*, and the steps you can take with Allstate® to help reduce your costs.

Reasons that might make car insurance rates go up

Insurers usually weigh several factors when it comes to car insurance rates. Common among them are speeding tickets, DUIs, credit 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 can help insurance companies understand how likely you are to file a claim. Now that you understand some of the reasons why auto insurance rates can increase, here are a few ways Allstate can help you lower your premium.

Bundle and save with Allstate¹

Save up to 25%² when you bundle auto and home with Allstate. Get multiple policy savings off both your home and auto policies. 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 get personalized savings based on your driving

Telematics programs 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 an auto policy based on your driving, which allows you to control your costs. Allstate offers two telematics based insurance options to help you save money: Drivewise® and Milewise®.

  • Enroll in Drivewise

    Drivewise³ is free and can be added to any Allstate auto policy. It helps you save based on your safe driving giving you an even more personalized price based on you. Plus, you’ll get savings just for activating Drivewise in the mobile app and staying connected. Maximize your savings by having all drivers in your household connect. Safe speeds, safe stops and safe driving hours are just a few of the ways you can keep insurance costs down. The safer you drive, the less you’ll pay.

  • Switch to Milewise from Allstate

    Milewise 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% 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. Also, if anything has changed since you got your auto policy like how much you drive over the course of the year, let’s talk. Chances are we can help you save for having a lower annual mileage.

Learn more about Allstate auto insurance discounts

Reasons home insurance rates go up

Home insurance covers a lot more than the house itself. It also can help 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 can include weather conditions, the risk of wildfires, vandalism, burglary and the cost of building materials and labor, and more.

In fact, these factors resulted in an increase in average annual home insurance premiums to $1,754 in 2023, according to Policy Genius. Fortunately, there are ways you can help reduce some of these risks and lower your costs.

As mentioned above, you could save up to 25%² when you bundle home and auto with Allstate. You could also save by bundling home with other Allstate products.

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.

Save for the way you pay

Get savings for things like paying on time, paying in full and enrolling in auto pay. 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.

Learn more about homeowners discounts