California Insurance Commissioner Drops Allstates Homeowner Rates 28.5%
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Welcome California to the Law of Unintended Consequences.
Insurance Commissioner Steve Poizner has announced that he is forcing Allstate to drop it’s homeowner insurance rates 28.5% so that the poor suffering people of California can pay their other bills. The average rate for Allstate customers in the state will now be $600.
And you know what, he has the power to do it. Of course with the wildfires and earthquakes it makes no sense to insure homes in the great state of California at such low rates so Allstate has stopped writing policies in the state.
And you know that the level of service the remain 850,000 customers will get will be minimal along with cancellations based upon the slightest reason.
Face it, why would you want to participate, even if it is the largest state, when the government stacks the deck against you. Allstate can not say to their customers, well the state lowered our income 28 percent so we will lower our coverage the same amount, can they?
Instead they will leave, the next disaster will have a bunch of underfunded, shallow pocket insurers in California who will be bankrupt the day after the disaster, and the population will wonder why they are getting screwed.
All I can say is when this happens, call your esteemed Insurance Commissioner Steve Poizner. Of course he will be all over the television screaming for tighter regulation of the insurance companies, populist morons like him do that all the time, when the suffering should be laid upon his doorstep.
When government creates an environment that honest businesses can not succeed, all that is left are the crooks and the thieves. Oh, and the politicians ducking for cover.
Poizner’s legal order, signed Tuesday, rejects Allstate’s request for a 9.3% increase in its homeowners insurance rates, and, instead, instructs the company to reduce its existing premiums by 28.5%. “In today’s sputtering economic environment, people need all the help they can get just to pay the bills,” Poizner said. “That’s why I’m pleased to order this tremendous rate cut.”
According to the Department of Insurance, the reduction should drop average Allstate premiums to around $600 a year. The new rates will take effect July 28.
The insurer will comply with the commissioner’s order, Allstate spokesman Peter DeMarco said. “We are reviewing the order in detail and communicating with the department about the process for adjusting the rates of our 850,000 homeowners policyholders in the state.” via The LA Times
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Comment by PJ on 22 July 2008:
I wonder why Allstate’s under the gun again. Could it be their boxing glove claims handling tactics? Check the sites below to dig deeper into the truth about Allstate. Check out what these CEOs make and what kind of money the companies are holding!
http://www.fairclaimsettlement.com/pdfs/TenWorstInsuranceCompanies.pdf
http://money.cnn.com/2007/02/12/magazines/moneymag/insurance.moneymag/index.htm
Comment by PJN on 7 March 2009:
Allstate Insurance should be banned from selling insurance policies at all. I had several policies with them for years. I was late by two days with a payment and they dropped me from their insurance. I drove around a month before I received a letter and a check from Allstate advising me that they had dropped my coverage. Thinking it was a mistake I called my agent and left a message. He never returned my calls. I called the main office and they told me that it was my fault I had the policies canceled. Oddly enough they then attempted to refer me to their sales Department to sign up for a new policy. Their business ethics are deplorable and their staff does not know what they are talking about. I was transferred 5 times before some kid told me I can sign up for a new policy. What a joke!
Comment by Ron Stowe on 3 June 2009:
Suddenly it all becomes crystal clear to me. I received a notice from Allstate that the paint on the outside of my house was peeling. I have been a policy holder for 50 years with no claims. Cement slab was cracked and raised. Drywall stored on front porch. Allstate doesn’t even have the money to hire inspectors their heads from other body parts. The last time I checked sidewalks were made of concrete. Less than one square foot of stucco color coat was missing. Clearly this is a case of grown men behaving badly. I’m pretty sure where Allstate’s “Good Hands” are besides in my back pocket.