Allstate files 25 percent rate increase on Ga. policyholders

Source: Allstate
Source: Allstate
Published: Aug. 16, 2022 at 12:39 PM EDT|Updated: Aug. 16, 2022 at 3:15 PM EDT
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SAVANNAH, Ga. (WTOC) - Georgia Insurance and Safety Fire Commissioner John F. King announced Tuesday that Allstate has filed an overall statewide automobile rate increase of 25 percent on Georgia policyholders.

“I am angry and disappointed that Allstate has chosen to exploit a loophole in state law to implement such a substantial increase in costs on hardworking Georgians when families are already struggling with historic inflation everywhere from the gas pump to the grocery store,” Commissioner King said in a prepared statement. “This latest increase means Allstate has now bypassed our office to raise overall rates in Georgia by 40% in this calendar year alone. In response, I have begun conversations with our legislative leaders regarding changes to state law to give our office additional authorities to protect consumers from these types of inexcusable actions.”

Under Georgia’s dual rate filing system governing automobile insurance rates established in Georgia state law, the Insurance Commissioner only has the authority to approve or disapprove minimum limits policy filings, while all other filings can go into effect immediately under what is known as “file and use.”

The latest rate increase filed by Allstate falls into the “file and use” category.

This rate increase will go into effect for new Allstate customers on Sept. 12. Current customers will see the increase on their renewals beginning Oct. 16.

WTOC reached out to Allstate for comment and was sent a report from the Insurance Information Institute. The report states that insurance rates are rising due to the frequency and severity of crashes, as well as replacement part inflation due to supply chain issues. The report also states that insurance rates are returning to pre-pandemic levels.

The response from Allstate continued, “Even though inflation and other factors are causing auto prices to rise, customers will continue to get competitive prices with Allstate and can save money for driving safely using Drivewise.”

Commissioner King’s office encourages Georgia policyholders to reach out to Allstate to discuss the reasons for the increase and the options available to them.

Allstate can be reached by telephone at 1.800.255.7828, online, or on Twitter.

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