California Insurance Commissioner Steve Poizner has ordered Allstate Corp., which covers about one out of every 10 insured cars in the state, to cut its automobile rates by 15.9% -- an average savings of $124 per car, according to state regulators..
The order, which came at the close of a lengthy proceeding before an administrative law judge, was more than twice what the Northbrook, Ill., company wanted to grant its policyholders. Allstate is considering whether to appeal the rate cut order.
"California's consumers deserve a competitive marketplace in which to shop around for the best rates that meet their needs," Poizner said in a statement. "This reduction reaffirms my commitment to ensuring that excessive rates are not charged. At the same time, the rate reduction is fair and reasonable for the company." [...]
Showing posts with label Allstate. Show all posts
Showing posts with label Allstate. Show all posts
The Supreme Court on Tuesday rejected Allstate Corp.'s challenge to a Texas law that restricts insurance company ownership of auto collision repair shops.
Allstate sought review of its case at the high court, arguing the Texas law violates the constitution. A federal appeals court has upheld the law, which bars Allstate from opening new collision repair shops.
The law, enacted in 2003, also restricts Allstate from participating in the business of 15 repair shops it owns in the state. Allstate purchased Sterling Collision Centers in 2001, a move that gave it nationwide entry into the automobile repair business.
The company has argued the law, which aims to protect smaller in-state collision repair companies from insurance industry competition, violates restrictions the Constitution places on state regulation of interstate commerce. [...]
Allstate sought review of its case at the high court, arguing the Texas law violates the constitution. A federal appeals court has upheld the law, which bars Allstate from opening new collision repair shops.
The law, enacted in 2003, also restricts Allstate from participating in the business of 15 repair shops it owns in the state. Allstate purchased Sterling Collision Centers in 2001, a move that gave it nationwide entry into the automobile repair business.
The company has argued the law, which aims to protect smaller in-state collision repair companies from insurance industry competition, violates restrictions the Constitution places on state regulation of interstate commerce. [...]
Claims for bodily injuries climbed 6.6 percent in the third quarter, said PCI, which does not have fourth-quarter data. That was driven by more expensive hospital visits, which rose 6.7 percent in 2007, according to the Department of Labor.
Automobile owners, take note: You may soon pay more to insure your car, truck or SUV.State Farm and Progressive are leading the push by auto insurers to raise premiums in at least 20 states as the $160 billion industry moves to end two years of price reductions.
So far, the price increases don’t appear to have touched drivers in Kansas and Missouri.
Insurers say they need higher prices to counter climbing repair and medical costs. Allstate, ranked second by premiums, said collision bills rose 2.2 percent in the fourth quarter from a year earlier and payouts for injuries gained 9.3 percent. Safeco Corp., which gets almost half its total premiums from drivers, reported a $19 million loss on auto underwriting.
Rising prices for new vehicles and expenses for labor and replacement parts contributed to a 45 percent increase in car repair costs during the past decade, according to information compiled by the Highway Loss Data Institute in Arlington, Va.
Collision costs rose 2.4 percent in the third quarter from a year earlier, according to data compiled by the Property Casualty Insurers Association of America. The cost of auto-body work was up 3.3 percent in 2007, the U.S. Department of Labor reported. [...]
"First and foremost, we're back in business in Florida," Allstate spokesman Adam Shores said after the ruling.
In at least a temporary win for Allstate, an appeals court Friday blocked a decision by state regulators that had stopped the insurer from selling new homeowners and auto policies.The 1st District Court of Appeal in Tallahassee issued a stay, setting aside a state order that suspended Allstate's licenses to write new property casualty business.
Tom Zutell, a spokesman for the Florida Office of Insurance Regulation, said the state expects to ask the court to lift the stay next week and reinstate the suspension.
The ruling gave a reprieve to Allstate agents whose right to sell new homeowners and auto policies was suspended Thursday when the state insurance commissioner issued his order.
"First and foremost, we're back in business in Florida," Allstate spokesman Adam Shores said after the ruling. [...]
ALLSTATE MAKES FINDING AUTO INSURANCE EASIERAllstate recently unveiled two new online interactive auto insurance-related tools on Allstate.com that answer common questions in plain English and help consumers better understand their insurance needs.
- Bumper-to-Bumper Basics- is an interactive, video-enhanced guide that quickly helps consumers assess their state-specific auto insurance needs.
- Ballpark Estimator- allows users to remain anonymous while obtaining an estimated auto insurance quote from Allstate.
Allstate Insurance officials will be called to account at a hearing this month on its practice of canceling the policies of homeowners who don't also buy their auto insurance, which state insurance regulators say is illegal.
The state Insurance Department issued a citation to Allstate Tuesday that requires the company appear on Sept. 19 in Manhattan. [...]
The state Insurance Department issued a citation to Allstate Tuesday that requires the company appear on Sept. 19 in Manhattan. [...]
Allstate has developed a better, more affordable way to help keep safe drivers covered and rewarded. Accidents happen – we understand. We also understand you deserve something back when they don’t. Now it’s time you get the auto insurance you’ve always wanted. The auto insurance features listed in the chart above are available in many states and provide greater choices and the rewards you deserve – from day one and at an affordable rate.
Depending on your situation, your car insurance coverage needs will vary. Whether you're buying a new car or adding your teenager to your car insurance policy, Allstate has auto insurance coverage options that can help provide the liability, property and injury protections that are right for you. And, if you drive a safe car or if your teenager has good grades, you may even qualify for our auto insurance discounts.
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