SANTA MONICA, Calif. - Allstate dropped its appeal of the state insurance commissioner's decision to reduce auto insurance rates by $250 million for California drivers.
Consumer Watchdog, acting on behalf of 2 million Allstate auto policyholders, had successfully blocked the major insurer from charging a higher rate.
"With gas prices soaring and the economy on thin ice, it's about time that California drivers got some good news," said Daniel Zohar, lead counsel for Consumer Watchdog.
Insurance Commissioner Steve Poizner's rate cut in March decreased the average annual policy premium by about $125 and applied to all policies renewed on or after April 28, 2008.
"Allstate had no proper legal basis for the appeal," Zohar said, "and having had a chance to consider their options, they correctly decided to dismiss the challenge to Poizner's order."
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