Michigan's new insurance consumer advocate wants the state to investigate Allstate Insurance Co.
Melvin "Butch" Hollowell said Tuesday the insurer reported that Michigan's drivers drastically reduced accidents for several years in a row. But the Detroit Free Press reports the company now is planning to raise rates, claiming the state's drivers are among the worst in the U.S.
Northbrook, Ill.-based Allstate had said that between 1996 and 2006, Michigan drivers had 9,000 fewer accidents, a 54 percent drop. The company on Sept. 18 sent a letter to Hollowell saying its safety report on Michigan drivers was incorrect.
Allstate spokeswoman Karen Spica said the report really has nothing to do with how the company sets insurance premiums but is an attempt to get motorists to pay more attention to safe driving. She said the report was inaccurate because Michigan data was not adjusted correctly to reflect Michigan's unique auto no-fault approach to third-party property damage.
Michigan's property damaged ledger generally does not account for payouts to other moving vehicles, Spica said.
She said Allstate would be happy to sit down and discuss the matter with Hollowell and the state Office of Financial and Insurance Regulation.
Hollowell filed a complaint asking OFIR Commissioner Ken Ross to investigate whether Allstate violated Michigan law by fraudulently altering data as a way to justify raising consumer insurance rates.