Allstate Agrees to Lower Rates in Settlement with Consumer Group

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Consumers Expected to Save $43 Million in Auto Insurance Rates

In a recent settlement with the Proposition 103 Enforcement Project, a project of the Foundation for Taxpayer and Consumer Rights, Allstate Insurance Company agreed to lower its California auto insurance rates 4.6%. Motorists will save approximately 43 million dollars.

“We urged Allstate to lower its rates and made a strong case for this decrease,” said Lillian Salinger, staff attorney for the Project. “This settlement means real and immediate savings for consumers.”

The settlement comes after Insurance Commissioner Chuck Quackenbush granted the Projectís petition requesting a hearing on Allstate‘s auto rates. The Project sought a hearing based on its expert’s analysis which found compelling evidence that Allstate‘s rates were excessive. Because of the settlement, a hearing will not be held and nearly one million Allstate policyholders will realize significant savings much sooner.

The Project invoked Proposition 103 to challenge Allstate‘s rates. Proposition 103 prohibits insurers from charging rates that are “excessive.” The Commissioner has the legal responsibility to make sure that rates are not excessive, and the public has the right to petition the Commissioner for public hearings challenging an insurer’s rate level.


Consumer Watchdog
Consumer Watchdog
Providing an effective voice for American consumers in an era when special interests dominate public discourse, government and politics. Non-partisan.

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