A San Francisco judge refused auto insurance giant Allstate’s request to block a $250 million auto insurance rate decrease set to go into effect next Monday.
Last month, California Insurance Commissioner Steve Poizner ordered Allstate to reduce its auto insurance rates by 15.9%. Allstate went to court to stop the decrease from taking effect but, after a hearing today, Judge Peter Busch ordered the company to comply with the rate reduction, which takes effect next Monday. Lawyers for the nonprofit organization Consumer Watchdog joined with the Department of Insurance and Attorney General’s Office to defend the rate cut in court today.
“This just confirms what this morning’s report concludes: that Proposition 103 regulation of insurance companies has saved California consumers hundreds of dollars each year in their auto insurance alone,” said Proposition 103 author and Consumer Watchdog founder Harvey Rosenfield.
A study released by the Consumer Federation of America in Washington, D.C. today reported that California, under Proposition 103, has the strongest insurance consumer protections in the nation. The report calculates that Californians have saved $62 billion on auto insurance alone in the twenty years since Proposition 103 was enacted. For more information, click here.
– 30 –