Allstate Corp has given in to the state of California Department of Insurance order to reduce their auto insurance rates an average of 15.9%, they said on April 30th, but they still plan to continue administrative law judge made it in March.
After a hearing on April 24th, in which Allstate lost in an attempt to hold off the rate reduction, it was implied that further legal action would be pursued.
In response, California’s Insurance Commissioner, Steve Poizner, ordered Allstate to comply with the order, and gave a date of May 12th as the deadline.
According to a statement released by Peter DeMarco, a spokeman for the insurance company, “Allstate is complying with the 15.9 percent auto rate reduction ordered by the Department of Insurance, effective April 28, 2008. We expect to have the lower rates reflected in our system before the Department of Insurance’s May 12 deadline.”
Allstate still thinks the 15.9% cut is excessive, and maintains that key evidence was excluded from the initial hearing, and plans to continue the appeals process.
Allstate’s customer base in California represents about 2 million vehicles.