Allstate Corp. has asked a California court to dismiss its appeal of a state order requiring auto insurance rate cuts averaging 15.9 percent for its policyholders.
Allstate insures about 2 million vehicles in California, according to the state Department of Insurance.
Allstate spokesman Peter DeMarco said the motion to dismiss was filed in San Francisco Superior Court. He said Allstate's lawyers told him that the court now considers the appeal process closed.
"While Allstate believes it would have ultimately achieved a successful outcome of the appeal, this decision was made in the best interest of all parties involved," DeMarco said in a statement.
Allstate appealed an auto insurance rate-reduction order issued in March by an administrative law judge.
In court, the insurer contended that a 15.9 percent cut was excessive, although it implemented the rate decrease while continuing its appeal.
The Allstate rate reductions amount to an average of $124 per vehicle each year, according to the Insurance Department, which projected an annual savings of nearly $250 million for Allstate's auto policyholders in California.
Call The Bee's Mark Glover at (916) 321-1184.
