Cheap California Auto Insurance | Allstate must cut California auto insurance rates by 15.9%

According to the LA Times, Allstate was ordered to cut auto insurance rates in California by 15.9%. Allstate covers about 10% of California drivers. And with well over 36 million people in California as of 2005, that’s a huge amount of cars.

The auto insurance rate cut in California will mean car insurance will be cheaper by about $124 a car. Another way of looking at it is Allstate will be loosing an average of $124 a car. Multiply that by the millions of cars Allstate insures in California and that’s a huge chunk of change Allstate is losing.

The mandate for Allstate to lower rates is another move the California government has made to help California residents find cheaper auto insurance. The mandatory rate cuts for auto insurers started in 2006 and seems to be continuing.

What does this mean for you? More cheap California auto insurance on the way!

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