Calif. judge refuses to block Allstate rate reduction

SAN FRANCISCO -- A San Francisco judge has refused to block a state-ordered, 15.9 percent reduction in Allstate's auto insurance rates.

Judge Peter Busch on Thursday denied the Northbrook-based company's request for a stay that would have prevented the order from taking effect next Monday. California Insurance Commissioner Steve Poizner issued the order last month and said Allstate's rates were excessive.

The rate cut averages $124 a year per motorist.

Allstate spokesman Peter DeMarco says the reduction ordered by Poizner was unreasonable. He predicts Allstate will ultimately win its court challenge.

The company has nearly 9 percent of California's auto insurance market.