Michigan Ranking Change on Allstate Best Drivers Report

Business Wire, Sept 19, 2008

Michigan No-Fault Auto Insurance System Alters Report Ranking in Several Cities

FARMINGTON HILLS, Mich. -- Several Michigan cities ranked highly on the 4th Annual "Allstate America's Best Drivers Report" released on July 1, 2008. However, Allstate (NYSE: ALL) recently determined that the report findings did not take into account that Michigan is the only state with a no-fault property damage (PD) system. In fact, had equivalent Michigan data been included, Michigan's cities would have finished much lower in the rankings among U.S. cities, with the top Michigan city placing 139th on the list.

The Allstate Best Drivers Report, introduced in 2005, was created to boost the country's discussion on safe driving and to increase awareness of the importance of being tolerant and attentive behind the wheel. Allstate actuaries have conducted in-depth analysis of company claim data annually to determine the likelihood that drivers in America's 200 largest cities would experience a vehicle collision compared to the national average.

"Recently, Allstate actuaries determined that a discrepancy exists because unlike the other 48 states where Allstate does business, Michigan's property damage ledger as a general rule does not contain payouts for damages of other vehicles if an Allstate insured was involved in a moving vehicle accident," said David Field, regional counsel for Allstate in Michigan. "The distinction between Michigan's current system and that in other states is probably more clearly understood when the costs for such coverages are compared. In Michigan, it costs around $25 for this type of coverage, while in other states it runs about $150."

Allstate's auto policies represent about 12 percent of all U.S. auto policies, making the report a realistic snapshot of what's happening on America's roadways. Since auto collisions in Michigan were not properly accounted for in the data, the data was skewed to generate a more favorable ranking for Michigan cities than was actually warranted.

"We regret that Allstate's 'America's Best Drivers Report' was inaccurate," said Field. "The fact is, however, Michigan drivers are required by law to purchase a very expensive insurance package. We are working with other interested parties to improve Michigan's unique no-fault auto insurance system to give drivers more choices and lower costs. We believe it is important to call attention to how the current system impacts Michigan cities' rankings on the previously published report."

Allstate will continue to work with those in the private and public sector that share a similar commitment to safe driving and will continue to undertake activities within the state on a regular basis to address this important issue.

The Allstate Corporation (NYSE: ALL) is the nation's largest publicly held personal lines insurer. Widely known through the "You're In Good Hands With Allstate([R])" slogan, Allstate is reinventing protection and retirement to help individuals in approximately 17 million households protect what they have today and better prepare for tomorrow. Customers can access Allstate products and services such as auto insurance and homeowners insurance through approximately 14,700 exclusive Allstate agencies and financial representatives in the U.S. and Canada, or in select states at allstate.com and 1-800 Allstate([R]). Encompass([R]) and Deerbrook([R])Insurance brand property and casualty products are sold exclusively through independent agents. The Allstate Financial Group provides life insurance, supplemental accident and health insurance, annuity, banking and retirement products designed for individual, institutional and worksite customers that are distributed through Allstate agencies, independent agencies, financial institutions and broker-dealers. Customers can also access information about Allstate Financial Group products and services at myallstatefinancial.com.