Allstate can go ahead raise auto insurance rates for Georgia drivers later this month because a state review of the planned increase won’t be done in time to stop the higher rates from taking effect, state regulators said.
State Insurance Commissioner Ralph Hudgens has asked an actuarial firm to examine Allstate’s rate increase request.
Under legislation Georgia lawmakers supported in 2008, the company can raise rates without the state’s formal approval, The Atlanta Journal-Constitution reported (bit.ly/24Sr20e).
“At this time, it does not appear that the results of the examination will be determined before the effective date,” 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 Allstate Insurance filed its plan to raise rates, the Atlanta newspaper reported.
Hudgens said last month that he’s concerned about the rate increase, and that his office is evaluating whether the planned rate increase is legally excessive.
The new rates become effective May 22. The commissioner said some drivers could see rates increase as much as 58 percent. The average increase will be about 25 percent.
The number of miles driven, traffic fatalities and costs associated with repairs have contributed to an increase in claims and costs to settle them, Allstate spokesman Adam Polak said.
The company will cooperate with Hudgens’ office, Polak 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,” he said in a statement.
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