Georgia insurance commissioner warns of massive rate hike from major insurer

A leading auto insurance provider plans to increase rates 25%, with some hikes up to 58.3%, to take effect May 22

Insurance News

By Lyle Adriano

Georgia Insurance Commissioner Ralph Hudgens issued a “consumer alert” April 11 that Allstate has filed for an auto insurance rate increase.

According to a report on ajc.com, the insurer had applied for an average rate change of 25%, to take effect May 22.

While the average rate range would be around 25%, Hudgens warned that “many policyholders should be prepared to see a rate change as high as 58.3 percent.”

Allstate commanded 11% of the auto insurance market in Georgia, as of late 2015.

“I am deeply concerned about this filing and the impact it could have on consumers,” commented Hudgens. “Georgia law prohibits me from stopping or delaying this increase unless an actuarial examination proves the rate to be legally excessive.”

The commissioner has ordered his staff to initiate a “professional level examination” of the rate increase filing to assess if it can be disputed. If Allstate cannot defend the increase, Hudgens will not hesitate to challenge the filing.

“Georgia adopted a ‘file and use’ system in 2008 to promote competition and lower rates among insurance companies . . . This rate filing appears to promote neither.”

In 2014, Georgia had the highest overall increase in personal auto insurance rates after insurers in the region saw their largest rate increases in a decade.
 

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