The ruling by Judge Peter Busch stalled Allstate's attempt to keep current rates in place and could result in rate reductions beginning as soon as next Monday, say consumer groups. According to the California Department of Insurance, the rate reduction comes to an average of $124 per vehicle each year.
Following the judge's ruling, Allstate spokesman Peter DeMarco said, "Allstate wants to lower its auto rates and reduce the cost of auto insurance in California, especially during difficult economic times for our customers. However, the proposed auto rate reduction Allstate is being asked to take is neither fair nor reasonable. We are reviewing the details of the court's ruling and will continue to explore our options going forward."
Allstate is the third-largest auto insurer in California, with about 9% of the market “in good hands,” according to figures from the Department of Insurance.