Georgia Insurance Commissioner Says Allstate Exploiting Insurance Gaps – WSB-TV Channel 2

Georgia Insurance Commissioner Says Allstate Exploits Insurance Loopholes

ATLANTA – Georgia’s insurance commissioner says an insurance giant is exploiting a loophole in Georgia’s law to dramatically increase auto insurance rates for customers.

“We think it’s outrageous, but they’re taking advantage of a loophole in current state law,” King told Channel 2’s Consumer Investigative Reporter Justin Gray on Wednesday.

Allstate is using something called “File and Use” to increase Georgia auto insurance rates by 25% in September.

That’s on top of the 14% increase approved by regulators earlier this year.

“There is clearly a gap and this is the only company that has taken advantage of it. I mean, most of the companies that we work with understand that we’re in incredibly tough economic times, and they’re working with us,” King said.

Channel 2 reviewed major Georgia insurers’ rate increases for 2022. The Office of the Insurance Commissioner tells us that Allstate is the only insurer in Georgia with a double-digit percentage increase.

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Nationwide, prices have not increased at all. State Farm saw a 5-8% increase, Progressive 6.5%, and Allstate was the outlier at 40%.

“We have negotiated very successfully with all other companies to keep these price increases at reasonable levels,” King said.

Channel 2 Investigates has published a number of stories over the past few years about customers struggling to get Allstate to pay after an accident.

It took Tesha McGee two years and a jury trial.

“These people have the money to pay, and they just want to call you ’til there’s no juice left,” McGhee said.

And an Allstate insider, former Allstate attorney Laura Johnson Bailey, told Channel 2 that it was Allstate’s policy to make low-ball offers.

“Allstate is the worst. Easy,” said Bailey.

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“Even as inflation and other factors drive up car prices, Allstate customers will continue to receive competitive prices,” the company said in a statement to Channel 2.

Allstate also pointed us to an insurance industry study that says insurance rates are just returning to pre-pandemic levels.

But Commissioner John King was clear. His concern isn’t with the insurance industry as a whole. It’s only with Allstate.

He has asked lawmakers to amend the law to fill the gap.

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