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Allstate's Staggering
30% Auto Premium Hike in California:
A Deep Dive

A professional picture of Brian Abbott.

Brian Abbott

February 5, 2024

Read Below ⬇
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Allstate's Staggering 30% Auto Premium Hike in California. A deep dive.

A professional picture of Brian Abbott.

Brian Abbott

February 5, 2024

California's auto insurance landscape is set for another jolt as Allstate announces an average 30% increase in auto premiums, effective February 7, 2024. Depending on your coverages, you could be facing even steeper hikes.

Bodily Injury average increase of 32.7%

Property Damage average increase of 63.4%

Uninsured Motorist average increase of 42.4%

Comprehensive average increase of 12.5%

Collision average increase of 16.4%

Vehicles on your policy that have Comprehensive and Collision coverage may see an average increase of under 30%.

For vehicles that happen to not have comprehensive and collision coverage you may see a higher average increase.

Why! Why! Why!

We can only speculate the reasons for the increases. Insurance companies are struggling to achieve profitability. Their models project higher losses, so they are reacting.

Dive into the numbers with me...

In 2022 insurance companies in California paid out $79.29 for every $100.00 they recieved from premiums for liability, and $83.30 was paid out for physical damage coverage. (Like Comprehensive and Collision coverage.) While each insurance company has a different profitability target they want to achieve, I believe many aim to be only paying out $70.00 for every $100.00 brought in. This leaves enough room for the insurance companies to pay operational expences, and have some left over for profit.

In 2022 Allstate paid out $90.72 for every $100 brought in for auto liability.

In 2022 Allstate paid out $84.63 for every $100 brought in for auto liability.

So almost all your money paid to the insurance company last year went to claims. With this smaller-than-normal amount the insurance companies have left over, they must pay rent, payroll, and other business expences.

Would you want to be the insurance company in this case? I wouldn't. Allstate performed significantly worse than their competition. They performed nearly 10% worse than the average company for liability claims.

So while you may feel like you personally don't deserve this increase - the number's show that Allstate must increase their rates.

Take Action:

Allstate isn't the only company raising rates. All you can do is get quotes with their competitors to compare prices.

Here is a calculator to estimate your premiums from this increase:

New Premium:


This estimator tool is only an estimate. This calculates the average increase customers can expect. (The input value is multiplied by 1.3)

Our Thoughts:

Allstate's rate increase, although understandable when reviewing the numbers, is going to be unbearable for many customers. The insurance market is going to be tough the next 2-3 years. Auto and homeowners insurance are facing difficulties. Quote around! Weigh your options.

A professional picture of Brian Abbott.

Brian Abbott

February, 5 2024

Our sources
  • Allstate Northbrook Indemnity Company Prior Approval Rate Application For Property & Liability Lines General Information document filed with the Department of Insurance on May 25, 2023.
  • SERFF Tracking Number ALSE-133688769
  • Related NAIC Company Code: 34655
  • Related NAIC Group Code: 0008
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