Esurance plans to hike car insurance rates in Illinois by an average of 3.8 percent, affecting 51,335 policyholders.
The change is effective Aug. 11 for policies that are being renewed.
Esurance is owned by Northbrook-based Allstate.
Company representatives couldn’t be reached for immediate comment.
Allstate will release its second-quarter financial results next week.
The company has said it has been trying to raise rates due to higher costs, including repairing newer, more complex vehicles. In the insurance industry, the size of a loss is known as “severity,” and it’s among the factors that go into setting rates.
In the first quarter, premiums generated by Allstate’s Esurance unit grew by 2.5 percent compared with the same quarter last year. The number of policies on Esurance’s books fell, but that was more than offset by a 5.2 percent increase in average auto premiums in the business, which sells its coverage mostly online.
Allstate bought Esurance for $1 billion in 2011, but the division continues to lose money.
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