Oklahoma Board Approves Insurance Rate Increases
Carter, Ray, THE JOURNAL RECORD
Members of the State Board for Property and Casualty Rates considered several double-digit insurance rate increases during their Thursday meeting, but opted to approve only a portion of the increase requested in most cases.
Allstate Insurance requested an overall 49 percent rate increase for its personal liability program. The increase would have affected 2,266 policyholders in Oklahoma. The company's average premium in the state is currently $54.
Allstate has requested the same increase in all but four states where it does business due to national losses on its personal liability line. However, board members noted that most of the company's losses were in other states.
"We're paying for the average of the nation as a whole," said Board Member Ash Gockel.
He noted that Oklahoma has performed better than almost all other state markets for the company.
As a result, board members instead approved a 25 percent increase, rather than the 49 percent hike requested.
Board members also considered Progressive Northern Insurance's request for an overall increase of 28.3 percent on its motorcycle policies. Custom-built motorcycles would have been hit hardest, with one customer facing a 1,268 percent increase on his premium, which would have jumped from $400 per year to $5,500.
However, a Progressive spokesman said that policy is the exception and the motorcycle involved is a $40,000 bike. Overall, fewer than 200 policies would see an increase of more than 200 percent.
The company defines custom motorcycles as any built outside the factory that is less than 20 years old with a value greater than $5,000. …