AAA Insurance Affiliate Files 8.7 Percent Auto Rate Reduction

IRVING, Texas--Feb. 1, 2005--AAA Texas County Mutual Insurance Company, the insurance affiliate for AAA Texas, has filed for an 8.7 percent average automobile insurance rate reduction effective today for new business and March 14 for renewing policyholders.

The rate reduction should save AAA Texas policyholders insured through AAA Texas County Mutual an average of $130 per policy. The amount of the adjustment to individual policies will vary, depending upon the type of coverage, applicable discounts and type of vehicle.

The motor club's insurance operation was able to reduce rates due to a reduction in the number of bodily injury, property damage and collision claims.

"In addition to reduced claims costs, we've continued to work hard at reducing operating costs and improving efficiency," said Barbara Childers, vice president of sales.

AAA Texas, an affiliate of AAA National, has been serving Texans since 1902. Today, more than a million AAA Texas members benefit from the organization's roadside assistance service, travel agency, financial products, insurance products and services, automotive pricing, buying and financing, trip planning services and traffic safety programs. Information about these products and services is available on AAA Texas' Web site at www.aaa-texas.com.