Hudgens gives drivers a heads-up on Allstate rates

[private]Insurance Commissioner Ralph Hudgens warned drivers who hold Allstate auto insurance that they face a 25 rate increase on May 22.

Hudgens won’t stop the increase from taking effect, but said Monday his staff will conduct an examination of the Allstate filing with the insurance department to see if the rate increase is justified.

If the examination shows that the filing cannot adequately support the rate increase, Hudgens said he will “take every measure allowed to him by law to protect policyholders.”

“Georgia law prohibits me from stopping or delaying this increase unless an actuarial examination proves the rate to be legally excessive,” Hudgens said.

Allstate issued a statement defending the rate filing:

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.

Allstate is the second largest automobile insurer in the state. As of Dec. 31, the Allstate group of companies held 11 percent of all Georgia automobile policies.

© 2016 by The Georgia Report

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Tags: Allstate , auto insurance , insurance department , Ralph Hudgens , rate increase