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 California. Show all posts
Showing posts with label California. Show all posts
WHY ALLSTATE MUST CUT RATES IN CALIFORNIA?
3/18/2008 05:45:00 PM | Allstate, auto insurance, California, rate quotes | 0 comments »CALIFORNIA DRIVERS GET PRICE BREAK WITH GEICO
10/24/2007 08:55:00 AM | auto insurance, California, Geico auto insurance | 0 comments »
GEICO PRICE BREAK
Thousands of Northern California AAA policyholders will get a price break on their auto insurance rates this coming year.
Insurance Commissioner Steve Poizner will officially announce today approval of a $105 million rate cut by the California State Automobile Association, the state's sixth largest auto insurer.
Almost 1 million CSAA policyholders will see an average rate reduction of 6.5 percent, or annual savings of $106 per policy. The auto club has about 156,000 policyholders in the Sacramento region.
With the announcement, CSAA joins a handful of carriers to completely meet the new rate rules under Proposition 103, the landmark insurance initiative approved by voters in 1988. By lowering rates now, insurers such as CSAA and GEICO, the state's 16th largest auto insurer, are hoping to attract new business.[...]
The average expenditure on auto insurance in California began declining two years ago, dropping to $845 for basic coverage from $847, according to the latest data from the National Association of Insurance Commissioners.
California ranked 18th among states in 2005, above the national average of $829 but well below the average expenditure of more than $1,100 in New York, New Jersey and Massachusetts.
Although statewide averages for last year are unavailable, the trend toward lower rates in California is continuing.
The state Department of Insurance approved $789 million in auto rate reductions last year, ranging from 4 percent to 7 percent, for 77 insurers in the $20 billion California market.
In the scramble for customers, observers say Geico is reshaping the way auto insurance is marketed.
“The volume of advertising has shot through the roof,” said Brian Sullivan, editor of the Auto Insurance Report, a weekly newsletter published by Risk Information in Dana Point. “The main reason is that Geico has proved they can make it work.” [...]
Thousands of Northern California AAA policyholders will get a price break on their auto insurance rates this coming year.
Insurance Commissioner Steve Poizner will officially announce today approval of a $105 million rate cut by the California State Automobile Association, the state's sixth largest auto insurer.
Almost 1 million CSAA policyholders will see an average rate reduction of 6.5 percent, or annual savings of $106 per policy. The auto club has about 156,000 policyholders in the Sacramento region.
With the announcement, CSAA joins a handful of carriers to completely meet the new rate rules under Proposition 103, the landmark insurance initiative approved by voters in 1988. By lowering rates now, insurers such as CSAA and GEICO, the state's 16th largest auto insurer, are hoping to attract new business.[...]
The average expenditure on auto insurance in California began declining two years ago, dropping to $845 for basic coverage from $847, according to the latest data from the National Association of Insurance Commissioners.
California ranked 18th among states in 2005, above the national average of $829 but well below the average expenditure of more than $1,100 in New York, New Jersey and Massachusetts.
Although statewide averages for last year are unavailable, the trend toward lower rates in California is continuing.
The state Department of Insurance approved $789 million in auto rate reductions last year, ranging from 4 percent to 7 percent, for 77 insurers in the $20 billion California market.
In the scramble for customers, observers say Geico is reshaping the way auto insurance is marketed.
“The volume of advertising has shot through the roof,” said Brian Sullivan, editor of the Auto Insurance Report, a weekly newsletter published by Risk Information in Dana Point. “The main reason is that Geico has proved they can make it work.” [...]
GEICO CUTS RATES IN CALIFORNIA
8/10/2007 02:01:00 PM | California, car insurance, GEICO, rates | 0 comments »
The California Department of Insurance has announced it has approved GEICO's 10.8 percent rate reduction in personal auto insurance policies. The reduction should translate into $65.8 million in overall savings for GEICO customers. Commissioner Steve Poizner also recognized GEICO's early compliance with the Department of Insurance auto rating factor regulations, rewarding good drivers for their behavior. [...]
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