Allstate requests 34% hike on insurance in California as state's insurance crisis escalates: report
Why is Allstate requesting a 34% insurance hike in California?
Allstate is requesting a 34% insurance hike in California due to increased repair costs, frequent severe weather events, and legal system abuse. The rate hike would impact over 350,000 policyholders if approved by the state's Department of Insurance. The company initially filed for a 39.6% rate increase last year before amending the request to 34.1% in January.
How many Allstate policyholders could be affected by the rate hike?
More than 350,000 Allstate policyholders in California could be affected by the proposed 34% rate hike if it is approved by the state's Department of Insurance.
What was Allstate's initial rate increase request last year?
Allstate initially requested a 39.6% rate increase on California homeowners insurance premiums last year. In January, the company amended its request to 34.1%. The latest rate increase request is being challenged by the Los Angeles consumer advocacy group Consumer Watchdog, demanding Allstate provide more data to justify the increase1.