ATLANTA — Documents obtained by Channel 2 consumer investigator Jim Strickland reveal insurance company Allstate wants to change the way it prices auto policies.
The insurance commissioner's office is studying the company's request for a new price plan, which some say will punish the loyal customers whether they are involved in a wreck or not. The proposal, called price optimization, would charge, in part, based in part on whether you are likely shop around.
"If you come in that barrel of 'not price sensitive,' you're going to pay more," said Channel 2 consumer advisor Clark Howard.
The Consumer Federation of America has written Georgia Commissioner of Insurance Ralph Hudgens, requesting that he deny Allstate's price filing and take additional action.
"We're asking him to consider doing what other states have done, Maryland, Ohio and California, banning the practice for all companies," said J. Robert Hunter, CFA's Director of Insurance.
Hudgens was traveling Tuesday, but Assistant Commissioner Jay Lorence consented to an interview.
"Is it illegal in Georgia?" Strickland asked.
"That's what we're looking at," he said.
Florence revealed Allstate filed a request to use the new price plan several months ago. He said the state has outside experts studying how consumers would be affected.
"I think something will come down in the next couple of months, but we don't want to rush it. We want to make it right," said Florence.
In a statement, Allstate told Strickland the company will continue to price based on risk:
"Allstate helps our customers get the best product at the right price. Our local agencies know our customers and work with them to get the most for their hard-earned money."
"Allstate's pricing has been and continues to be determined by risk and costs. Insurance prices are risk-based so that lower-risk drivers pay less than higher-risk drivers. We use information such as driving safety record, amount and location of driving, type of vehicle and individual behaviors to provide our customers with accurate and competitive rates. We continuously update our pricing so we can make sure customers benefit from the most advanced approaches. As a result, our prices are highly competitive and fair."
Howard said those believed to be price sensitive can benefit.
"If an insurer knows that you're one of those folks that's like, 'Wait. Wait. Wait; Can I save money over here? Can I save money over there?' you will get a better deal from your existing insurer without actually doing anything."
Howard advises drivers to shop around every three years at least to find the best price. He also figures no matter what the insurance commissioner decides, insurers will always find a way to charge the most the market will bear.