State Insurance Commissioner John King says Allstate plans to raise its auto insurance rates by 25% this fall.
He claims Allstate is exploiting a loophole in state law to implement the substantial increase, raising overall rates in Georgia by 40% this calendar year.
“I am angry and disappointed that Allstate has chosen to exploit a loophole in state law to implement such a substantial increase in costs on hardworking Georgians when families are already struggling with historic inflation everywhere from the gas pump to the grocery store,” said King. “This latest increase means Allstate has now bypassed our office to raise overall rates in Georgia by 40% in this calendar year alone.
Insurance companies blame more serious crashes, higher medical costs, and increasing prices for vehicles and parts for recent rate hikes.
“In response, I have begun conversations with our legislative leaders regarding changes to state law to give our office additional authorities to protect consumers from these types of inexcusable actions.”
Because of Georgia’s dual rate filing system that governs automobile insurance rates, the Insurance Commissioner only has the authority to approve or disapprove minimum limits policy filings. All other filings, including Allstate’s latest rate increase can go into effect immediately under what is known as “file and use”.
The Office of Commissioner of Insurance encourages Georgia policyholders to reach out to Allstate to discuss the reasons for the increase and the options available to them.