You’re already paying higher prices for gas, groceries, and just about everything else you buy. But if you’re an Allstate car insurance customer, you’ll soon notice a significant increase in that bill, too.
ABD previously reported the company is raising its automobile insurance rates by 25 percent, effective Sept. 12 for new customers and Oct. 16 for current customers.
While most insurers are currently raising their rates due to inflation and other factors, 25 percent is a very large increase. We contacted Allstate, which released a statement.
“Allstate lowered its auto rates in Georgia last year when many insurers were raising their rates,” the statement said. “Though inflation, more frequent and severe accidents, costlier repairs, and other factors have been causing auto rates to go up, customers will continue to get competitive prices with Allstate and can save money for driving safely using Drivewise.”
Drivewise is a program that monitors driver behavior and provides discounts for driving safely.
Local Allstate agent, James O’Neal provided a similar explanation for the rate increase.
“I think there has been so much volatility in our lives over the last four years and increases/post-pandemic inflation in everything that people are just trying to survive and find the best pricing for whatever they need to protect their way of life,” O’Neal said.
But he said the government stimulus checks have only made the situation worse.
“Like when the government bailed out the banks in 2009, what was to happen to our economy dumping that much money into the system to fight covid?” O’Neal asked.
Like the rest of us, he isn’t sure if this time, inflation is temporary or the new normal.
