For Release: March 18, 2008
NEWS RELEASE
Commissioner Poizner Approves Auto Rate Reduction for Allstate Customers
15.9 Percent Reduction Is Nearly $245 million in Lower Rates for Californians
SACRAMENTO -- Today Insurance Commissioner Steve Poizner announced a 15.9 percent decrease in auto insurance rates for customers of Allstate Insurance Company and Allstate Indemnity Company (Allstate). This $244,672,212 reduction culminates months of negotiations and an administrative hearing, which began with Allstate requesting no change to their auto insurance rates, and mirrors reductions made by other, major auto insurers.
The average annual savings per auto is approximately $124.
This decision is effective April 14, 2008.
"California's consumers deserve a competitive marketplace in which to shop around for the best rates that meet their needs," said Commissioner Poizner. "This reduction reaffirms my commitment to ensuring that excessive rates are not charged to California consumers. At the same time, the rate reduction is fair and reasonable for the company."
The administrative law judge agreed with the California Department of Insurance (CDI) claim that Allstate's rates should be reduced significantly because they were overly excessive to begin with. Many insurers in California have significantly lowered auto insurance rates for their policyholders. In 2007, Californians saved more than $700 million through reduced auto insurance rates.
CDI maintains that Allstate should be held to the same standard as other auto insurers, based on data submitted to the department. In October 2007, Commissioner Poizner approved $100 million is reduced auto insurance rates for AAA of Northern California.
In July 2007, he approved a $65.8 million reduction for GEICO customers.
Allstate Indemnity Company is the fifth largest auto insurer in California; Allstate Insurance Company is ranked ninth. Collectively, they earned $1.7 billion in auto premiums for insuring approximately 2 million vehicles in 2007. Allstate has nearly 9 percent of California's auto insurance market.
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Commissioner Poizner Approves Auto Rate Reduction for Allstate Customers
