Allstate Reports Higher Auto Insurance Premiums As a Result of More Car Accidents
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      Allstate Reports Higher Auto Insurance Premiums As a Result of More Car Accidents

      Allstate Reports Higher Auto Insurance Premiums As a Result of More Car Accidents

      Allstate Corporation, provider of auto, home, life and retirement policies to customers in Canada and the US, has reported an increased operating income of $262 million (U.S.) for the three months ending June 30, 2015. This is compared to last year’s fourth quarter income of $445 million (U.S.). Overall, the company reported $8.98 billion U.S. in revenues for the second quarter of 2015. This translates to an increase of 4.7 percent over the same quarter last year, reflecting a rise in insurance premiums from the same quarter in the previous year.

      What explains this increase in revenue for Allstate? Thomas Wilson, CEO of Allstate, says that the increase in premiums is attributable to what has been shown to be an increase in the frequency and severity of auto accidents. He goes on to explain that, “the increase in auto accidents is broad-based by state, risk class, rating plans and the maturity of the business, and consequently appears to be driven by external factors.” The external factors include reckless, distracted and impaired driving, which causes accidents and are not the fault of Allstate alone.

      Moreover, an increase in the frequency and severity of bodily injury claims negatively impacted Allstate’s auto loss ratio. Bodily injury frequency and claim paid severities increased 6.8 percent and 0.6 percent, respectively, compared to last year’s fourth quarter.

      In a previous blog post, we mentioned that it is estimated that drivers have overpaid $3 to $4 billion for auto insurance between 2001 and 2013, and $840 million alone in 2013.

      Whether or not Allstate has done its best to keep the cost of insurance low, the bottom line is that higher insurance premiums affect you as a driver. If you have been involved in an accident, visit our accident section to understand your rights. If you have any questions, book a free consultation or call 1-855-446-7765 for immediate assistance.

      Disclaimer: The content of this article is a general guideline made available for educational purposes only and is not intended to be used as legal advice for the reader's specific situation nor in general. By reading our blog and website content, the reader acknowledges the above and understands there is no lawyer-client relationship created between you and Himelfarb Proszanski through this content. To get specific legal advice, we encourage you to book a free consultation with one of our lawyers to clarify the legal aspects of your situation.