Allstate Raised Illinois Home Insurance Rates 8.8% in 2026: What Was Filed, Why, and What to Do About Your Renewal

If you typed "Allstate raised my rates" or "is Allstate raising rates in Illinois" into a search bar, you are probably holding a renewal with a bigger number than last year. This article lays out what Allstate has actually filed in Illinois over three years, what the company says is driving it, what we could not verify, and how to decide whether your renewal is a fair price or a reason to shop. We are an independent agency, so Allstate is a competitor; everything below is attributed to a filing, a news report, or Allstate's own materials.

Did Allstate Raise Rates in Illinois in 2026?

Yes. On December 22, 2025, the Chicago Sun-Times reported, based on a filing with the Illinois Department of Insurance, that Allstate homeowners customers in Illinois would see an average 8.8% increase at renewal beginning February 24, 2026, ranging from 4.9% to 10.4%, for more than 209,000 policyholders.

Allstate's statement to the Sun-Times: "Illinois rates are being driven by the state's severe weather events and higher repair costs." ABC7 Chicago carried the same effective date and the same explanation.

Digital Insurance reported on December 29, 2025 that the filings were projected to affect about 300,000 policyholders across Allstate's affiliated companies, bring in roughly $58 million, and were built around maintaining an 8% operating profit. Because new rates apply at renewal, not all at once, a customer whose policy renewed in September 2026 saw the February rate for the first time that month, which is why "Allstate raised my rates" searches keep appearing long after the headlines.

How Much Have Allstate's Illinois Home Rates Gone Up Over Three Years?

The 2026 increase is the third consecutive one to land in February. Here is every Allstate rate action we could verify from a regulator, a major news outlet, or Allstate's own filings. Anything we could not verify is left off the table and discussed below.

For the 2025 action, Allstate said the increase applied to a portion of its Illinois homeowners customers, cited "more frequent, severe weather and higher repair prices," and said customers "continue to get competitive prices with Allstate," per the Tribune report summarized by Insurify.

Why Does Allstate Say It Is Raising Rates?

Allstate's explanation for Illinois is consistent across every report we found: severe weather and higher repair costs. Its investor materials add context.

• In its third-quarter 2025 earnings release, Allstate said average gross written premium for Allstate-brand homeowners insurance rose 12.0% year over year, which "reflects continued rate increases and higher home replacement costs."
• The same release shows homeowners catastrophe losses of $3.917 billion for the first nine months of 2025, up 15.1% from the prior year, even though the third quarter itself was mild at $479 million.
• Its investor supplement shows homeowners rate increases implemented in 19 locations in the first quarter of 2025 (averaging 5.9%), 25 in the second (8.0%), and 21 in the third (12.0%). Illinois is one of the states where Allstate sells its own brand of homeowners insurance, which it says is available in 24 states.

Consumer advocates read the same numbers differently. The Sun-Times quoted Illinois PIRG's Abe Scarr calling the increase excessive in light of Allstate's $3.7 billion third-quarter 2025 profit, a figure Insurance Journal confirmed from the company's results. The industry's answer, as reported by The Center Square, is that premiums reflect weather-related claim costs and that every filing comes with actuarial documentation.

The weather problem is not unique to Allstate: a March 2026 Sun-Times/WBEZ report cited a Consumer Federation of America finding that Illinois home insurance costs rose roughly 50% between 2021 and 2024, and LendingTree's S&P-based tracking puts Illinois's 2025 statewide rate change at 14.1%, fourth-largest in the country. We explain the mechanics in why your home insurance went up. The question for you is narrower: is Allstate's new price for your house competitive with what other carriers would charge for the same coverage?

Is Allstate Raising Auto Rates in Illinois Too?

We looked, and we will not report a number we cannot stand behind. Several low-quality websites claim double-digit Allstate auto increases in Illinois for 2026, but none cites a filing, and we found no confirmation from the Illinois Department of Insurance, a major news outlet, or Allstate. The honest answer is: unverified.

What Allstate has disclosed nationally points the other way. Its Q3 2025 investor supplement shows auto rate increases in 46 locations averaging 2.4% where they applied, with a total brand impact of 0.6%, far smaller than its homeowners actions. If your Illinois auto renewal went up noticeably, the likeliest explanations are on your own policy: a ticket or claim, a new driver or vehicle, a lost discount, or your territory.

What About Allstate in Texas?

We also could not verify an Allstate-specific Texas homeowners increase for 2025 or 2026 from a regulator or major outlet, so we do not report one. The Texas Department of Insurance does publish the statewide picture: average homeowners rate changes of 21.1% in 2023, 18.7% in 2024, and 4.3% in 2025, with the Allstate Insurance Group holding 16.79% of the Texas homeowners market in 2024, second only to State Farm. On October 8, 2026, TDI reported that most homeowners filings since July 1 proposed decreases, averaging a 4.3% cut. If you own property in both states, see our Texas home insurance page, which carries TDI's preliminary 2025 average annual premium of $3,489.

Does the New Illinois Rate-Review Law Affect My Allstate Renewal?

Not yet. When Allstate filed the 2026 increase, the Illinois Department of Insurance could not approve or reject homeowners rates. That is changing, on a timeline that matters.

In May 2026 the General Assembly passed House Bill 4273 (homeowners) and Senate Bill 714 (auto), as reported by Capitol News Illinois, and Gov. JB Pritzker signed them in August 2026, according to the Sentinel. Both take effect July 1, 2027. From then on:

• Rates may not be "excessive, inadequate, or unfairly discriminatory."
• Insurers can still start charging a filed rate, but the Department has 60 days to notify a company that a filing fails the standard, and can ultimately reject it and order rebates of excess premium.
• Homeowners insurers must give at least 60 days' notice before a premium increase of more than 10%; auto insurers must give 30 days.
• Rates must rest on credible Illinois-specific loss data where available, and out-of-state disaster losses cannot be shifted onto Illinois customers.

So for any Allstate renewal dated before July 1, 2027, your tool is the one it has always been: comparison. We cover the law in our rate-review law explainer, and the parallel story in State Farm's 2026 Illinois increase.

How Should I Read My Allstate Renewal?

A statewide average tells you little about your own bill. Here is how to find out what changed.

1. Put this year's declarations page next to last year's

Look at Coverage A (dwelling), the all-perils deductible, the wind/hail deductible if there is a separate one, the liability limit, the endorsements, and the discount list. Our guide to the declarations page walks through each line.

2. Separate the rate increase from the coverage increase

Most policies raise the dwelling limit each year to track rebuilding costs. Allstate's own investor footnote separates its rate changes from "inflation in insured home replacement costs." If your Coverage A went up, part of your premium change is buying more coverage, not a rate change. Make sure the limit tracks a realistic rebuild cost and not an inflated one; see replacement cost.

3. Check the deductibles

A higher percentage wind/hail deductible lowers the premium but moves risk to you. Do the math on your dwelling limit so you know what a hail claim would actually cost out of pocket.

4. Check the discounts, then ask your agent what moved

Multi-policy, paid-in-full, protective-device, and new-roof credits can fall off quietly. Your Allstate agent can tell you whether a discount, your territory, your roof, or your claims history drove the change. If the explanation does not add up, contact the Illinois Department of Insurance.

Should I Leave Allstate? How to Decide

Judge the renewal by comparison, not by the headline percentage. Get quotes for the identical policy, including the same dwelling limit, both deductibles, replacement cost on contents and roof, and endorsements, from carriers that are not Allstate. An Allstate exclusive agent can only quote Allstate; an independent agent can price the same coverage across many carriers. At Better Choice we compare 22+ carriers; our quick quote form takes about three minutes and a licensed agent calls you back.

Then apply a simple test:

• Quotes land close to the renewal: stay. The increase is the market price of insuring a house in Illinois right now, and your agent relationship is worth something.
• Equal coverage is meaningfully cheaper elsewhere with a financially strong carrier: switching is reasonable. Bind the new policy first with a matching effective date, cancel in writing, then send the new evidence of insurance to your mortgage servicer. Our guide to leaving Allstate without a gap covers refunds, cancellation, and lapse prevention.
• You have an older roof or a recent claim: be careful. Other carriers may surcharge or decline the same risk, and a cheap quote that disappears at inspection is worse than a fair renewal.

For a broader toolkit, including deductible changes, roof documentation, and bundling, see how to lower your home insurance premium and what to do when any renewal goes up. If you are weighing whether to keep an Allstate agent or move to an independent one, Allstate agent vs. independent agent explains what is actually different.

For context, the NAIC Homeowners Insurance Report puts the average Illinois HO-3 premium at $1,480 for 2023, the latest year published; see our Illinois home insurance page. Rates have moved a great deal since, which is exactly why a current comparison matters more than any statewide average.

The Bottom Line

Allstate's 2026 Illinois homeowners increase is real and already in effect: 8.8% on average, 4.9% to 10.4% by policyholder, since February 24, 2026, on top of 14.3% and 12.7% in the two years before. Allstate attributes it to severe weather and repair costs. None of that tells you whether your renewal is the best available price for your coverage. Only a line-by-line comparison does.

That is what we do for clients in St. Charles, across Kane County, and throughout Illinois: we review every renewal and re-shop when an increase is out of line. If Allstate is still your best value, we will tell you that too.

Frequently Asked Questions

Related Reading

• State Farm Is Raising Illinois Home Insurance Rates 8%: What to Do
• The Illinois Insurance Rate-Review Law, Explained
• Leaving Allstate: How to Switch Without a Coverage Gap
• Allstate Agent vs. Independent Agent: What's Actually Different
• Why Did My Home Insurance Go Up?
• How to Lower Your Home Insurance Premium
• Your Insurance Renewal Went Up. Here's Exactly What to Do Next