Auto Insurance Spikes 30 Percent For Allstate Customers In CA

California drivers insured by Allstate are paying an average of 30 percent more for vehicle coverage after a rate hike approved last year went into effect earlier this month, according to reports.

“Our payments to help customers recover from accidents and disasters have increased significantly over the last few years and we need to adjust rates to reflect the cost of providing the protection our customers depend on,” an Allstate spokesperson told KTLA.

The company, which is the third-biggest auto insurer in the state, had requested a 35 percent increase, the outlet reported. Allstate had paused direct sales of new auto policies last year, according to the San Francisco Chronicle.

Some Allstate customers will only see their rates rise 10 percent while others’ rates will spike up to 55 percent, a state insurance department spokesperson told the Chronicle.

“Normally you see 2, 3, 4, maybe 5% (increase), but this is unheard of,” Jay Zemansky, president of Sadler & Company Insurance Brokers Inc., told the Chronicle.

The average annual premium for car insurance in the state rose about 18 percent year-over-year, KTLA reported, citing a Bankrate.com study.

The changes in the auto sector are part of a broader shift involving insurance coverage in the state. State Farm and Allstate have stopped offering new homeowner policies and some smaller providers have dropped existing policyholders, media outlets have reported.