Allstate Bid to Halt California Auto Rate Cut Denied - BodyShop Business

Allstate Bid to Halt California Auto Rate Cut Denied

According to a report from NU Online News Service, a California court yesterday turned down a request by Allstate to stay a regulator’s demand that the firm cut its auto insurance rates by 15.9 percent.

Insurance Commissioner Steve Poizner called the ruling “a $250 million victory for consumers in California and for Allstate customers.”

"I will continue to fight to ensure that insurance rates in California
are not excessive, and when rates are found to be excessive, I will
work aggressively to ensure that those rates are lowered," Poizner said.

Although Allstate admitted the ruling was disappointing, the company said it “has no impact on the merits of Allstate’s appeal, and we believe we will ultimately win the appeal.”

The 15.9 percent auto insurance rate decrease for Allstate was announced in March, and amounted to a reduction of $245 million. 

Months of negotiations and an administrative hearing aimed at cutting the rate started with Allstate requesting no change to its auto insurance rates, and resembled reductions made by other major auto insurers. Allstate’s request was turned down.

The California Department of Insurance said many insurance companies in California had significantly lowered auto insurance rates for their policyholders, and in 2007, Californians saved more than $700 million through reduced auto insurance rates. The department argued that Allstate should be held to the same standard as other auto insurers, based on data given to the department. 

Allstate Indemnity Company is the fifth-largest auto insurer in California; Allstate Insurance Company is ranked ninth. Together, they earned $1.7 billion in auto premiums for insuring two million vehicles in 2007.

 

You May Also Like

Cruise Postpones Release of Driverless Taxi Service

Cruise, a GM subsidiary, recently announced that it will miss its goal of launching a large-scale self-driving taxi service in 2019.

Cruise, a GM subsidiary, recently announced that it will miss its goal of launching a large-scale self-driving taxi service in 2019. Cruise CEO Dan Ammann said the company plans to dramatically increase the number of its autonomous test vehicles on the road in San Francisco, but will not be offering rides to regular people this year, according to an article from The Verge.

Cutting Edge Automotive Solutions Partners with Andretti Rallycross

Andretti Rallycross announced that Cutting Edge Automotive Solutions will serve as technical partner on Cabot Bigham’s No. 02 OINK Clothing Beetle for the remainder of the 2019 Americas Rallycross season, showcasing their SP Tools USA brand.

Ford, Volkswagen Expand Collaboration to Include Autonomous, Electric Vehicles

Ford Motor Company and Volkswagen AG announced they are expanding their global alliance to include electric vehicles – and will collaborate with Argo AI to introduce autonomous vehicle technology in the U.S. and Europe.

CCAR Updates Website with More OSHA Alliance Resources

CCAR (Coordinating Committee For Automotive Repair) has announced the addition of new Occupational Safety and Health Administration (OSHA) Alliance content on its main website, www.ccar-greenlink.org.

CARSTAR McLaren Lake Forest and CARSTAR McLaren Irvine Open in California

Owned by husband-and-wife team James and Mary Davis, CARSTAR McLaren Lake Forest and CARSTAR McLaren Irvine are a family business.

Other Posts

CIECA to Offer Webinar on What Businesses Need to Know to Implement CIECA Standards

CIECA will hold its next CIECAst webinar, “Implementing CIECA Standards: Implementation Guide and Appendix C – BMS, Code Lists and Shema Components,” on Tuesday, Dec. 11, 2018 at 11 a.m. CST.

CARSTAR Urges Customers to Stay Winter Ready

Cold weather can create some of the harshest driving conditions of the year. The months between October and February top the list for accidents, vehicle damage and injuries.

CIECA Adds Broadly as Corporate Member

The Collision Industry Electronic Commerce Association (CIECA) announced that Broadly has joined CIECA as a corporate member.

NABR Launches BillableGenie Online Searchable Database of Insurer-Paid Not-Included Procedures

National AutoBody Research (NABR) has announced the launch of its BillableGenie online service, an independent, centralized source of actual data on insurer paid not-included procedures and operations, labor rates, labor rate concessions and other manually entered estimate line items.