For Ohio drivers insured by Allstate, there’s some good news on the horizon. The company was recently approved for a rate adjustment that will decrease auto insurance premiums by an average of 5.4% for an estimated 79,136 policyholders. This change is set to impact renewals beginning on August 7, 2025 and is projected to drive an average decrease of $104 per policy.
A rate decrease of this magnitude offers a real opportunity for savings– whether you’re currently insured with Allstate or you’re looking to switch carriers.
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Why Do Insurance Rates Go Up and Down?
It may seem like insurance companies are always raising rates, but the truth is, a wide range of factors influences a company’s decision to adjust its premiums. At its core, an insurance company’s primary goal is to ensure it has enough money coming in from premiums to cover the money it pays out in claims. When that balance shifts, rates often follow.
If an insurer experiences a period with fewer accidents, fewer severe claims, or a decrease in the cost of vehicle repairs, it may find itself with more financial cushion. This could allow the company to file for a rate decrease to stay competitive and pass some of those savings on to its customers.
Another major consideration is the state of the economy. Factors like inflation can drive up the cost of everything, from the parts needed to repair a car to the medical expenses associated with an accident. When these costs rise, insurers may need to adjust rates upward to keep pace. Conversely, a period of economic stability or even a decrease in certain costs can contribute to a rate decrease.
Changes in state regulations can also play a role. Insurance is a highly regulated industry, and each state’s department of insurance oversees rate filings to ensure they are fair and justified. A regulatory change or a new law could prompt an insurer to adjust its rates to stay in compliance.
Finally, an insurer’s competitive position in the market is a key driver. Companies are constantly analyzing the market to make sure their prices are attractive to new customers while still being sustainable. A rate decrease, like the one Allstate is implementing, can be a strategic move to gain market share or retain existing policyholders in a competitive environment.
Strategies for Finding Affordable Car Insurance
While Allstate’s rate decrease is great news for their customers, the broader Ohio market remains competitive. Even if you’re not an Allstate policyholder, this news should serve as a wake-up call to review your own policy. Here are some simple, yet effective, ways to ensure you are getting the best deal on car insurance in Ohio.
- Shop Around: When it comes to car insurance, loyalty doesn’t pay. If your premiums are going up, or you’re not happy with your carrier, shop around for a better deal. Using an online shopping tool can help you quickly gather quotes from a variety of insurers so you can narrow it down from there.
- Review Your Policy Regularly: Your life changes, and so should your insurance policy. Did you recently get married, buy a home, or change jobs? Many of these life events can open the door to new discounts. Regularly reviewing your policy– especially around renewal time– is a simple way to make sure you’re not missing out on savings.
- Maintain a Good Driving Record: This might sound obvious, but it’s still one of the most impactful ways to lower your rates. A clean driving record with no accidents or traffic violations is a clear signal to insurers that you are a low-risk driver. Many companies offer “good driver” or “accident-free” discounts that can significantly reduce your premiums.
- Improve Your Credit Score: In most states, Ohio included, insurers use a credit-based insurance score as one of the factors to determine your rates. A higher credit score is often associated with lower premiums, so improving your financial standing can pay off in more ways than one.
- Ask About Discounts: Don’t assume you’re getting every discount you’re entitled to. Many insurance companies offer a variety of discounts for things like having an anti-theft device, taking a defensive driving course, being a good student, or even just paying your premium in full. A quick call to your insurer could reveal discounts you didn’t even know you qualified for.
- Consider a Higher Deductible: A deductible is the amount you pay out-of-pocket before your insurance coverage kicks in. By opting for a higher deductible, you’re signaling to the insurer that you’re willing to take on more of the financial risk. In return, they will often reward you with a lower monthly premium. Just make sure the higher deductible is an amount you could realistically pay if you needed to.
- Explore Usage-Based Insurance Programs: Many companies now offer programs that track your driving habits, such as your speed, braking, and mileage, through a device in your car or a smartphone app. If you are a safe driver, these programs can offer substantial discounts based on your actual driving behavior, rather than broad statistics.
Stay On Top of Your Rates
Navigating the world of car insurance can feel daunting, but it doesn’t have to be. Sign up for Auto Quote Tracker to get personalized notifications when your rates are set to change– delivered directly to your inbox.