Why Did My Allstate Insurance Go Up?

Allstate auto prices went up because the company was losing money on auto insurance and set out, in its own words, a "comprehensive plan to improve profitability." In 2023 alone, rate increases for Allstate brand auto insurance had a premium impact of 16.4%, which Allstate expected to add about $4.27 billion in annualized written premiums ². In California, a settlement with the state found a 30.0% overall increase supportable for Allstate Northbrook Indemnity Company, for policies effective February 7, 2024 ¹.

Those increases slowed sharply once margins recovered: Allstate's auto rate increases had an annualized premium impact of 7.5% in 2024 and 2.6% in 2025 ^{5 6}. If your Allstate bill rose recently, the cause may be a late-arriving state increase, a change on your own policy, or a lost discount rather than the big company-wide push of 2023. We are not affiliated with the insurers named.

Allstate is a publicly traded company, so it reports its rate actions to investors, often monthly. It usually describes them as "implemented rates" and gives a premium impact: the expected effect of the rate changes on the brand's total auto premium. That is different from a single state's filing percentage, and it is different again from what any one customer pays. Rate changes are filed state by state, and each filing's percentage is an average for that company's existing policyholders in that state.

Allstate also sells auto insurance under the National General brand, and its policies are written by several legal companies. The California auto filing discussed below was made by Allstate Northbrook Indemnity Company ¹.

Allstate's full-year 2023 auto results show why it raised prices. Its recorded auto combined ratio was 103.4 in 2023 ⁵. A combined ratio above 100 means claims and expenses cost more than the premium collected, so on that measure Allstate was paying out more than it took in on auto.

The company's response was a steady run of increases:

• Through November 2023, Allstate brand auto rate increases had produced an 11.4% premium impact for the year, according to industry reporting on the company's statements ³.
• In December 2023 alone, Allstate brand auto rates rose 16.5% across 15 locations, for a total brand premium impact of 5.0%, including increases approved that month in California, New York and New Jersey ².
• For the full year, the premium impact was 16.4%, expected to add about $4.27 billion in annualized written premiums ².

Allstate's chief executive said at the time that the company could not keep losing money in those three states. Speaking about California, New York and New Jersey, he said: "We're not threatening anybody, we're just saying we can't afford to lose that much money in those three states" ³. New York approved 14.6% and New Jersey 20%, while he had put the rate need at "30-plus percent in California and New Jersey" ³.

California requires approval before an auto rate change takes effect. Allstate Northbrook Indemnity Company asked for a 35% increase on its private passenger auto line. The settlement with the California Department of Insurance found an overall 30.0% increase supportable, for policies effective February 7, 2024 ¹.

The 30% is an average. A department spokesperson said some customers would see increases as small as 10% and others as large as 55% ⁴. The department also said its review found that Allstate "overstated certain loss projections," which is part of why the approved figure was lower than the request ⁴. An Allstate spokesperson said payouts for accidents and disasters had risen significantly and that "we need to adjust rates to reflect the cost of providing the protection our customers depend on" ⁴.

Allstate's 2025 annual report to the SEC lists what pushes auto claim costs up. For injury claims, it names more severe accidents, more claims with attorney representation, higher medical use and inflation. For vehicle damage, it names higher repair costs for parts with built-in driver assistance systems such as cameras and sensors, and tariffs that affect vehicle and parts prices ⁷. The same report says Allstate pursues "rate increases and decreases" to keep pace with loss cost trends ⁷. In other words, when the cost of a typical claim rises faster than premiums, filings follow. For more on the repair side, see how repair costs push car insurance up.

By 2024, the auto combined ratio had improved to 95.0, which Allstate called the result of "successful execution of the comprehensive plan to restore margins" ⁵. Rate increases that year had an annualized premium impact of 7.5%, and in the fourth quarter just 0.9% ⁵.

In 2025 the premium impact of auto rate increases was 2.6% for the year and 0.2% in the fourth quarter ⁶. Allstate also said it reduced premiums for 7.8 million auto and homeowners customers by an average of 17%; the release does not separate auto from home in that figure ⁶.

State regulators report some cuts directly. The Florida Office of Insurance Regulation said Allstate decreased rates by 7% for more than 171,000 Florida drivers ⁸.

• Your state's increase arrived later. Each state approves or accepts filings on its own schedule, so the timing of an increase in your state may not match the national numbers.
• You were at the high end of the average. As the California range of 10% to 55% shows, a filing average hides wide differences between customers ⁴.
• Something on your policy changed. A claim, a ticket, a new driver, a new car, a move or a change in mileage can all change the price at renewal.
• A discount ended or changed. See why discounts disappear at renewal.
• Coverage changed. Higher limits, lower deductibles or added coverages cost more even when base rates are flat.

1. Read the renewal notice coverage by coverage and compare with last term. Our guide on reading a renewal notice explains the parts.
2. Ask Allstate or your agent what changed: a state rate change, a change on your policy, or a discount.
3. Review deductibles and optional coverages to see whether they still fit your car and budget.
4. Compare quotes from several insurers. The same driver can be priced very differently by different companies. You can compare quotes here.
5. Contact your state insurance department with questions about a filing or how your policy was handled.

Sponsored link. QuotePitStop is a lead-generation service and is paid by insurance partners when you request quotes.

• Why did my car insurance go up? explains the causes common to every insurer.
• Are car insurance rates going down? covers the wider trend.
• Other insurers: Progressive, GEICO, State Farm and USAA.

• ¹ Official record: the California Department of Insurance settlement for Allstate Northbrook Indemnity Company's private passenger auto filing (35% requested, 30.0% found supportable, effective February 7, 2024), checked October 11, 2026.
• ² Reported: Allstate's own January 2024 release on December 2023 and full-year 2023 implemented auto rates (16.5% in 15 locations, 5.0% and 16.4% premium impact, about $4.27 billion), checked October 11, 2026.
• ³ Reported: news coverage of Allstate's year-to-date 2023 rate impact, the New York and New Jersey approvals and the chief executive's comments, checked October 11, 2026.
• ⁴ Reported: news coverage quoting the California Department of Insurance (10% to 55% range, overstated loss projections) and an Allstate spokesperson, checked October 11, 2026.
• ⁵ Reported: Allstate's own full-year 2024 results release (auto combined ratios of 103.4 and 95.0, 7.5% and 0.9% rate impact), checked October 11, 2026.
• ⁶ Reported: Allstate's own February 2026 results release (2.6% and 0.2% rate impact, 7.8 million customers, 17% average reduction), checked October 11, 2026.
• ⁷ Official record: Allstate's 2025 Form 10-K filed with the SEC, for claim cost drivers and its stated pricing approach, checked October 11, 2026.
• ⁸ Official record: the Florida Office of Insurance Regulation release on Allstate's 7% Florida decrease for more than 171,000 drivers, checked October 11, 2026.