AAA Announces 20 Percent Overall Rate Reduction for Minnesota Homeowners

BURNSVILLE, Minn., Oct. 24, 2005 -- Effective October 24, 2005, AAA Minnesota will offer new policyholders an average 20 percent rate reduction on its homeowner's product. Existing customers also will receive a 20 percent rate reduction on their homeowner's insurance, reflected automatically on renewals beginning December 1, 2005.

"AAA members qualify for an additional 5 percent discount on top of the 20-percent rate reduction," said Randy Williams, AAA's regional president.

"The rate reduction and members-only discount will result in major savings for our policyholders in Minnesota," Williams said. "And homeowners looking for high value insurance will never find a better time to comparison shop."

In addition to the recently announced homeowner's rate reductions, AAA Minnesota provides an ongoing "accident-free" discount for its auto insureds that recognizes and rewards safe driving. Under this program, any qualifying insured who does not have an auto accident for an extended period of time will be eligible to receive a premium discount.

The "accident-free" discount can run as high as 20 percent, depending on individual driving record, and is available to non-members as well as members.

"AAA auto and homeowner's products have become more attractive for anyone who is looking to save money on insurance," said Williams. "Furthermore, policyholders who become AAA members enjoy a wide range of exclusive benefits and discounts at a variety of hotels, restaurants and retail establishments that will more than cover the annual membership fee."

  Special AAA Auto/Homeowner's Insurance* features include:

  --  Personal Finance Safeguards -- Protection against forgery and
      unauthorized use of lost or stolen checks, credit cards or ATM cards.

  --  Inflation Protection -- Adjusts your coverage annually to keep pace
      with increasing repair and replacement costs (not available with
      Market Value Policy).

  --  One-On-One Claim Service -- Allows you to file a claim 24 hours a day,
      seven days a week.  You can even report your claim on-line!

  --  Premium Discounts -- Up to 15 percent savings with use of home
      safety/security devices, senior citizen 20 percent discounts, group
      discounts and added savings when insured with AAA auto insurance.

   * Underwritten by Auto Club Group Insurance Company

AAA ( http://www.aaa.com/ ) offers automotive, travel, insurance and financial services to more than 45 million members in the United States and Canada. AAA Minnesota/Iowa is part of The Auto Club Group, with 4.1 million members in eight Midwest states.