According to Georgia state insurance regulators, Allstate can raise Auto insurance rates for Georgia drivers in May because a state review of the planned increase won’t be done in time to stop the higher rates from taking effect.
Under legislation Georgia lawmakers approved in 2008, the company can raise rates without the state’s approval, The Atlanta Journal-Constitution reported.
“At this time, it does not appear that the results of the examination will be determined before the effective date,” State Insurance Commissioner Ralph Hudgens said in a statement. “If the filing is proven to be excessive, then I will do everything allowed by law to reverse Allstate's actions.”
Last month, Hudgens issued a rare consumer alert after Northbrook, Ill.-based Allstate Insurance Co. filed its plan to raise rates. He’s concerned about the rate increase, he said, and that his office is evaluating whether the planned rate increase is legally excessive. He has asked an actuarial firm to examine Allstate’s rate increase request.
The new rates, which become effective May 22, could increase rates for some drivers by as much as 58%, Hudgens said, but he expects the average increase will be about 25%.
According to Allstate spokesman Adam Polak, the number of miles driven, traffic fatalities and costs associated with repairs have contributed to an increase in claims and costs to settle them. “The company will cooperate with Hudgens’ office,” he said in a statement. “Should the department’s review raise any questions with our filing, we will work cooperatively to reach agreement on these questions and take whatever steps are necessary to comply with that agreement.”
Related: Top 10 personal auto carriers for 2015, as ranked by NAIC
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