SANTA MONICA, Calif.,
PRNewswire-USNewswire — California drivers with Allstate auto insurance will save a quarter-billion dollars under an order issued by Insurance Commissioner Poizner Friday that requires Allstate to lower its premiums by 15.9%. The savings are a result of Proposition 103's prohibition on excessive rates and will lower each policyholder's premium an average of $133 per car. Nearly two million drivers with Allstate insurance policies will see their rates go down. The order takes effect April 14.
The Commissioner's order followed the recommendation of an administrative law judge that heard the case in
"California Allstate drivers will save an average of
request for a mere 7% decrease after the initiation of the rate hearing
was based upon contradictory tales of Allstate's alleged financial
distress in California, while at the same time, the company was
boasting of record profits to Wall Street. Allstate's net income for
2006 alone was approximately
"In an economy that is wreaking havoc on consumers' bottom line, Allstate's rate cut can be positively perceived as a
FTCR has also
challenged an unjustified homeowners' insurance rate hike requested by
Allstate. If successful, the challenge will save Allstate's homeowner
The Allstate auto insurance savings announced today were achieved under amended regulations issued by the Department of Insurance last year that revised guidelines for profitability and allowable expenses under the rules of Proposition 103. Prop 103 requires insurance companies to open their books and submit to public hearings to justify that rates are adequate without being excessive. Consumers may intervene in or initiate proceedings to challenge any rate that is unfair or excessive.
Using Prop 103, FTCR has helped Californians save more than