The good hands of Allstate insurance are dipping deeper into the pockets of Georgia policyholders.
According to Georgia Insurance and Safety Fire Commissioner, John King, Allstate is using a loophole in Georgia’s law to increase automobile insurance rates by 25 percent.
“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,” King said in a statement. “This latest increase means Allstate has now bypassed our office to raise overall rates in Georgia by 40 percent in this calendar year alone.”
Georgia has a dual-rate filing system that governs auto insurance rates, which means the commissioner can approve or reject some rate increases but has no say in others. Allstate used the loophole to bypass the commissioner’s office in making the latest increase. King is in conversation with state legislators in an attempt to close the loophole.
The new rates for new Allstate customers go into effect on Sept. 12, while current customers won’t experience the increase until Oct. 16.
King encouraged Georgia policyholders to reach out to Allstate to discuss the reasons for the increase and the options available to them.