News
Car Insurance Discount for Some
Effective March 11, 2009 car insurance rates will be cut 6% by Allstate for car insurance customers identified by Allstate to most likely shop around for car insurance in the state of Illinois.
Car insurance customers most likely to shop around by Allstate’s definition are car insurance customers with average credit scores (not high scores or low scores) or customers with multiple cars and a recent teenage driver addition. Teenage drivers tend to cause a sharp increase in car insurance rates which increases the probability that the car insurance policy holder will shop around for better rates.
Allstate is doubling the existing discount it offers to young drivers shopping for car insurance on their own for the first time with parents that have good driving records.
Allstate hopes this rate decrease will make them more competitive in Illinois with their competitors. Allstate has been hammered by the economy. Allstate has steadily lost car insurance policy holders since the beginning of the downturn. Allstate’s stock price has plummeted 52% ($17.13 per share) year to date.
CEO Thomas Wilson acknowledged car insurance from Allstate isn’t as cheap as its competitors. In an effort to change that, Allstate has decided to increase car insurance rates 3% for longtime customers (go figure).
If you are one of those lucky few, it may be time to shop for car insurance.