Allstate Cuts West Virginia Auto Insurance Rates 8.2%
The reduction is nearly double the one the insurer originally sought.
Story by The Associated Press
Allstate customers will soon be paying less for auto insurance.
The Insurance Commission has approved Allstate’s request to lower its rates for private passenger auto insurance by 8.2 percent. The new rates will become effective for new customers on July 25 and for renewal of existing coverage on Aug. 25.
Allstate originally had sought a 4.2 percent rate cut, but later increased its request after analyzing market trends. The company expects the cut to save West Virginia insurance customers a total of nearly $5 million.
Allstate and other insurers had pledged earlier this year to lower customer costs if the Legislature eliminated so-called third-party bad faith lawsuits.
Lawmakers did so during this year’s regular session and the legislation went into effect Friday. The legislation bans lawsuits filed against insurers by nonpolicyholders involved in an accident or claim with a policyholder.
Under the new law, third parties can only file administrative complaints.