By Michael DeFreitasAssociated PressSeptember 25, 20189:37PM EDTSAN FRANCISCO –Insurance giant Allstate Inc. on Thursday said it is raising its insurance premium for consumers and raising the annual deductible for some older people from $2,500 to $3,500.
Insurance company Allstate said it would start offering premium increases next year for individuals and families of up to a combined $10,000.
In 2016, the company had set a goal to raise the average annual premium for a family of four to $5,500 by 2026, and the company said it had increased that target for individuals to $2.50 per person and a family to $7.50.
Allstate’s policyholders will get a one-time payment of $1,000 to cover the cost of covering the higher cost, it said.
For individuals, the premium increase will be based on age, which will range from $4,500 for a 30-year-old to $14,000 for a 65-year old, Allstate spokeswoman Jennifer Janssen said.
For families, the increase will start at $2 to cover an average cost of $10 for an individual and $20 for a household of three.
A number of other insurers have announced similar increases, and many have also raised the annual limit for people under age 65 to $20,000 from $10 million.