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Pamela H.
Hernando, FL
By Margarita Bauza, Detroit Free Press
Oct. 7--The state's insurance consumer advocate is asking the state to hold hearings on a proposed auto insurance rate increase by Allstate Insurance Co.
Melvin "Butch" Hollowell is asking Insurance Commissioner David Ross to look into reports by the insurance company that claimed Michigan's drivers had drastically reduced accidents for several years in a row.
The insurance company then alerted the state that it planned to raise rates for the state, claiming its drivers were among the worst in the country.
"Allstate says it no longer stands by its report," Hollowell said.
A report by Allstate said that between 1996 and 2006 Michigan drivers had 9,000 fewer accidents, a 54% reduction.
In addition, four Michigan cities -- Sterling Heights, Warren, Detroit and Grand Rapids -- ranked in the top 10 in accident reduction between 2005 and 2007. Flint was ranked as the most improved city.
Allstate has alerted the state that it will raise rates but has not yet filed a formal request or said what rates would be, Hollowell said.
In a Sept. 18 letter to Hollowell, Allstate said its safety reports on Michigan drivers had been incorrect. A spokesperson for Allstate Insurance couldn't immediately be reached today.
Hollowell says that Allstate is willfully manipulating "claims data from Michigan and its revised report is a violation of the state's Unfair Trade Practices act and the rate-making section of the state's Essential Insurance Act."
Hollowell says his office's goal is to stop rate hikes to Michigan's consumers.
Michigan has among the highest insurance rates in the country. Its $1,000 statewide annual average premium is just below New Jersey's, the country's most expensive.
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