State Farm Reduces Auto Insurance Rates in California

08/19/96

Business Wire reported that State Farm Insurance Co. has filed with the California Department of Insurance to reduce its automotive insurance rates by 5.4 percent. State Farm covers one of every five autos insured in California; the rate reduction would amount to a $133.8 million savings in premium costs for State Farm's customers.

State Farm lowered their rates by 1.7 percent last September. The insurer's request represents the latest in a series of rate cuts that insurers have filed with California's Department of Insurance recently. Over the last year, seven of the state's top ten insurers have reduced their rates, while only three have raised theirs. Two companies have filed for three rate reductions apiece, amounting to 12% reductions over all; the biggest rate increase came from a company that raised its rates 5%.

California's Insurance Commissioner, Charles Quackenbush, said, "State Farm's decision to reduce auto insurance premiums is good news for consumers, whether or not they insure their cars with State Farm. When the state's largest seller of automobile insurance drops its prices, other companies will follow suit in an effort to stay competitive."

Paul Dever -- The Auto Channel