Pennsylvania Insurance Commissioner Koken Approves Decrease in Auto-Insurance Premiums
19 August 1999
Pennsylvania Insurance Commissioner Koken Approves Decrease in Auto-Insurance Premiums
Rate Reduction for State Farm Expected to Save Customers More Than $57 Million
HARRISBURG, Pa., Aug. 19 -- On behalf of Pa. Gov. Tom Ridge,
Insurance Commissioner Diane Koken today announced the Insurance Department's
approval of a significant rate reduction in auto-insurance premiums for State
Farm Insurance Group.
"We are very pleased to approve a 5.7 percent average rate reduction for
the largest writer of auto insurance in the Commonwealth, State Farm Mutual
Auto Insurance Company, which insures one out of every five auto-insurance
consumers in the state," Koken said. "This is a $57.7 million savings for
their customers. It's thanks to a healthy and competitive marketplace for
Pennsylvanians.
"The good news for Pennsylvania drivers doesn't stop there. Consumers
will benefit from rate reductions from 2 percent to 7 percent by auto-
insurance carriers, including Erie Insurance, Nationwide, Allstate and many
others over the past year.
"This trend in lower auto-insurance rates is the result of several
factors: mild winters with safer driving conditions; the increased safety of
the cars being built today; and the choices consumers make regarding limited
or full tort coverage influence auto-insurance premiums.
"Consumers have a healthy marketplace in Pennsylvania to shop for auto
insurance. It's important to be an informed consumer. Compare rates, ask
questions and understand what type of coverage you're buying."
The Pennsylvania Insurance Department provides a free Guide to Auto
Insurance Premiums and a premium-comparison guideline by county for the 20
largest auto-insurance carriers in Pennsylvania. Consumers can call the
department's toll-free automated Consumer Line at 1-877-881-6388, or visit the
department's website through http://www.state.pa.us or directly at
http://www.insurance.state.pa.us for a copy of the guide.
For more information, contact Angela Yarbrough, Press Secretary of the
Pennsylvania Insurance Department, 717-787-3289.