The Georgia insurance commissioner is publicly shaming one of the country’s largest auto insurers after the carrier announced an average 25% rate increase in the state.
“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 John King said in a statement posted last week.
King said the “file and use” action, as it’s known in Georgia, lets Allstate move ahead with premium increases on about 300,000 drivers before his office reviews the plan. It’s at least the second time this year for Allstate, which, like other insurers, has said it is adjusting to rising costs for cars and car repairs.
“This latest increase means Allstate has now bypassed our office to raise overall rates in Georgia by 40% in this calendar year alone,” King said.
The $188 million Allstate increase has so incensed the commissioner that he said he’s begun conversations with legislative leaders on changes to state law to give his office additional authority to prevent some rate hikes.
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