GA Allstate customers warned car insurance rates could go up 25% - WTVM.com-Columbus, GA News Weather & Sports

GA Allstate customers warned car insurance rates could go up 25% or more

(Source: WTVM) (Source: WTVM)
ATLANTA, GA (WTVM) -

Georgia’s insurance commissioner is issuing a consumer alert concerning a proposed car insurance rate hike for Allstate Property & Casualty customers in the state of Georgia. 

Commissioner Ralph Hudgens says Allstate, the second largest automobile policy provider in the state, has filed an overall statewide rate increase of 25 percent that will be implemented next month.

Hudgens warns some policyholders could see their rates jump as much as 50 percent or more.

“I am deeply concerned about this filing and the impact it could have on consumers,” Hudgens said. “Georgia law prohibits me from stopping or delaying this increase unless an actuarial examination proves the rate to be legally excessive.”

On Monday, Hudgens directed Georgia department staff to initiate a professional level examination of the Allstate filing to determine if the rate increase is defendable under state law.

If the examination shows the increase is not defendable, Hudgens says he will take every measure allowed to protect policyholders. Allstate plans to implement that rate increase on May 22. 

Allstate spokesperson Adam Polak emailed a statement, saying: 

By offering a broad range of innovative protection options, Allstate provides strong value to our customers. We adjust rates very carefully to charge properly for the risk we assume and ensure our ability to protect customers from life’s uncertainties.  This particular rate filing applies to one of Allstate’s three underwriting companies in GA and represents less than half our auto insurance business in the state. 

We work closely with state departments of insurance whenever we adjust our rates, and look forward to a continued dialogue with the Georgia Department of Insurance. As is industry standard, changes in market conditions require that we set rates that are adequate for the coverage we provide. Increases in the number of miles driven, the amount of traffic fatalities, and the costs associated with repairing vehicles have caused the insurance industry to experience a significant increase in both the number of claims received as well as the cost associated with settling these claims. 

We encourage all our customers to regularly consult with their Allstate agent about the most appropriate coverage and available discounts for their particular circumstances.

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