Allstate Insurance Co. believes one of the "most straightforward" ways of reducing the cost of auto insurance is to lower the amount of coverage that is required.
Allstate's comments were made in a letter to the Federal Insurance Office, which has initiated a study of the affordability and availability of auto insurance. In its letter, signed by Edward T. Collins, vice president and assistant general counsel, Allstate suggests revising legal requirements that force low-income individuals to purchase coverage they do not need, which could lower costs and make insurance more affordable.
"Affordability could also be enhanced by attacking some of the factors that drive up costs, including fraud and abuse and litigation costs," Collins says in the letter.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
