It was awesome!
S. Combs
Palm Coast, FL
By Mark Glover, The Sacramento Bee, Calif.
May 1--Allstate Corp. said Wednesday that it will honor a state Department of Insurance order by cutting auto insurance rates an average of 15.9 percent for its California policyholders. But the company said it will continue to appeal the ruling.
Allstate has been arguing in court to keep its current rates as it appeals an auto insurance rate-reduction order issued in March by an administrative law judge.
After losing its attempt to keep current rates at an April 24 hearing in San Francisco Superior Court, Allstate hinted that it might pursue further legal action to maintain the existing rates.
That prompted Insurance Commissioner Steve Poizner to order Allstate on Monday to promptly comply with the rate reduction.
Poizner said Allstate must implement the rate reduction for its customers by May 12. On Wednesday, Allstate said it would beat that deadline.
"Allstate is complying with the 15.9 percent auto rate reduction ordered by the Department of Insurance, effective April 28, 2008. We expect to have the lower rates reflected in our system before the Department of Insurance's May 12 deadline," Allstate spokesman Peter DeMarco said in a statement.
But Allstate said it will continue to appeal the rate-reduction order issued by the administrative law judge. The insurer filed that appeal early last month, saying key evidence was excluded from the hearing. Allstate also has argued that a 15.9 percent cut is excessive.
The Allstate rate reductions amount to an average of $124 per vehicle each year, according to the Insurance Department, which projected an annual savings of nearly $250 million for Allstate auto policyholders in California.
Allstate insures about 2 million vehicles in California, according to the Insurance Department.
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