Allstate Insurance, which insures 2.1 million drivers in California, plans to raise premiums by 6.9 percent-a move that could force other companies to do the same. The increase is scheduled to take effect May 18. Rate changes of less than 7 percent do not require a hearing before the state Department of Insurance. Allstate blamed the increase on a rise in the number and severity of accidents for the increase-which would add roughly $48 to an annual $700 premium. Insurers and analysts predict that this move by Allstate will most likely prompt more companies to boost their rates.
Topics Trends Pricing Trends
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