Allstate insurance office in Baltimore, MD. October 11, 2021. Photo: Diego M. Radzinschi/ALM
A quarter million Allstate customers in Illinois will pay at least 14% more for homeowners insurance this winter.
The new rates will take effect on Feb. 24, 2025, and impact roughly 250,000 customers, the Chicago Tribune reported. The new price hike comes after Allstate implemented a 12% raise in 2024.
In a statement sent to PropertyCasualty360.com, Allstate pointed to increasing severe weather and higher repair prices raising insurance claim costs for the move.
“The rate increase applies to a portion of our homeowner customers in Illinois, not all. Some customers will see a reduced increase or no increase,” a company spokesperson said.
Allstate hit California homeowners with 34.1% rate hike in November 2024.
The rate hike was approved by the California Department of Insurance and impacted roughly 350,000 policyholders statewide, just two months before the LA wildfires.
Meanwhile, the Illinois rate increases come after the publicly-traded company was named in a Jan. 13, 2025 lawsuit by Texas Attorney General Ken Paxton for allegedly conspiring to collect and sell data from mobile devices without the owners' consent.
Allstate and its subsidiary Arity LLC allegedly created a database to track driving behavior. The subsequent data was used to justify raising insurance rates, according to the suit filed in Montgomery County, Texas.
“Our investigation revealed that Allstate and Arity paid mobile apps millions of dollars to install Allstate’s tracking software,” said Paxton. “The personal data of millions of Americans was sold to insurance companies without their knowledge or consent in violation of the law. Texans deserve better and we will hold all these companies accountable.”
Allstate denies any wrongdoing.
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