Melvin Butch Hollowell, insurance consumer advocate for the state of Michigan has asked state insurance commissioner Ken Ross to investigate auto insurance rate increases that were filed by Allstate, even after the insurer said that Michigan's drivers were among the safest in the country and had reduced their number of car accidents for several years in a row.

The most recent rates filed by Allstate, which went into effect on July 28th of this year, included increases of five to seven percent.

Hollowell believes those rate hikes were illegitimate, based on the "Allstate America's Best Drivers" report which was released on July 1st, which states that between 1996 and 2006 Michigan drivers had 9,000 fewer serious accidents than the preceding years, a reduction of 54%. In addition four Michigan cities: Detroit, Grand Rapids, Sterling Heights, and Warren, were among the top ten in accident reduction during the period between 2005 and 2007, while a fifth city, Flint, Michigan, was ranked as the most improved city.

Allstate's response is that the report was wrong. They say that the accident rates, which are based in part on property damage claims, were miscalculated, and that they failed to account for the fact that Michigan is a no-fault state, and that therefore accidents weren't counted correctly.

According to David Field, regional counsel for Allstate, the new report with corrected numbers ranks Michigan drivers among the worst in the country.

In a statement made on Tuesday, October 7th, Hollowell said that Allstate's number manipulation was willful and that, "claims data from Michigan and its revised report is a violation of the state's Unfair Trade Practices Act and the rate-making section of the state's Essential Insurance Act."

Hollowell believes further rate increases are coming coon, and is asking Ross to hold hearings in order to prevent them.

Hollowell made his point very clear: "What we are saying is that based on this new report, we think they will raise them again, and that it might not be so far in the future."