Georgia to Investigate Allstate Auto Rate Increase

A Georgia statewide rate increase of 25 percent on Allstate Property & Casualty Insurance Company policyholders has triggered a consumer alert from state Insurance Commissioner Ralph Hudgens.

The Georgia Department of Insurance issued a consumer alert April 11 to all of the insurers policyholders informing them that the insurer has filed an overall statewide automobile rate increase of 25 percent that will be implemented on May 22, 2016. Hudgens said in a statement to policyholders that the 25 percent figure is only an average rate change for the entire state, and that many policyholders should be prepared to see a rate change as high as 58.3 percent.

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

Commissioner Hudgens said Georgia department staff was directed to initiate a professional level examination of the Allstate filing to determine if the rate increase is defendable under state law. If the results of the examination show that the filing cannot adequately support the increase, he intends to take every measure allowed to him by law to protect policyholders, according to GADOI.

“Georgia adopted a ‘file and use’ system in 2008 to promote competition and lower rates among insurance companies,” Hudgens said. “This rate filing appears to promote neither.”

GADOI said that policyholders are recommended to discuss the reasons for the increase and options available to them with Allstate. These options could include revising deductibles, reviewing coverages needed or comparison shopping to find the right mix of coverage and price.

The Allstate Group of companies is the second largest automobile policy provider in the state of Georgia. As of Dec. 31, 2015, they held a market share of 11 percent of all Georgia automobile policies.