California Insurance Commissioner Steve Poizner recently issued an order to Allstate's auto insurance units in California to reduce the rates currently charged for auto insurance by nearly 16 percent. The rate reduction will become effective by mid-April, and will save California consumers approximately $245 million annually in auto insurance premiums, or roughly $125 per vehicle.
"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," Poizner said.
Not surprisingly, Allstate disagreed with the commissioner and believes the rate reduction is excessive. The company anticipated a reduction of about 8 percent, and is considering filing an appeal.
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| Posted by: anonymous on 04/21/2008 Another good reason to deal with an Independent Agent. They can offer choice for their customers. |
| Posted by: anonymous on 05/03/2008 Another good reason to leave CA where you can't make a fair profit. I have Allstate currently and have shopped the rate the last 3 years and no one can beat them How is that excessive Keep it up Poizner and you will drive business from the state If you have the major insurance companies pull out of CA then the state economy will really grind to a halt Poizner just wants to be CA Gov. It will never happen |
| Posted by: anonymous on 05/14/2008 Does anyone know if this really has taken affect yet, because my rate has not changed a dime - and we are now in the month of May. |
| Posted by: anonymous on 05/15/2008 Not sure if the insurance rates have changed ... maybe AllState appealed. |
| Posted by: anonymous on 05/20/2008 Whenever your policy comes up for renewal you will see it on your statement. I just called my agent to find out. |
| Posted by: anonymous on 05/20/2008 You will be notified when your policy comes up for renewal of your rate change. I just talked with my agent. |
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Posted by: anonymous on 07/30/2008
Fair Profit? Anonymous on 5/3 has to be an industry shill. Since the passage of prop 103, California auto insurance companies have made, on average, 2-6% higher profits than the national average. Those companies will not leave our great state because we're a cash cow. Besides, Poisner is in their pockets anyhow, fairly gutting the California Supreme court ruling with his "emergency" changes to Garamendi's regulations that were set to go into effect on July 14, 2008. The insurance companies had thrown in the towel after the last ruling, however, it may have been because insurance-friendly Poisner had taken over.
One thing specifically ruled against was their habit of basing rates on zip codes - with black and Latino rich areas charge more. However, I recently moved to a largely black neighborhood and my rates increased by 20%. No other changes; I have a perfect record, and I only have liability and uninsured motorist. The rate increase was almost entirely on my liability coverage. The insurance commission's compliance officer all but told me to forget about it and pay up. I'm still waiting to get the official response. So forget the alligator tears Allstate is crying over the new "regulations." The regs are now window dressing to placate the consumers while handing the insurance folks our wallets. |