State Farm Lowers California Auto Rates
4 August 2000
ROHNERT PARK, Calif. - For the sixth time since 1995, State Farm Mutual Automobile Insurance Company will reduce the cost of auto insurance for its California policyholders. Rates will drop an average of 5.0 percent effective Sept. 15, saving the company's customers in the state about $98.8 million. With this rate reduction, State Farm's California rates have dropped 25.7 percent since 1995. In addition, the state's leading insurer of passenger cars recently announced it will return $182.6 million in dividends to its California policyholders this year. This means State Farm will have returned $447.9 million in dividends to its California customers since 1997. "We're glad we can continue to share with our policyholders the results of their good driving and our ongoing efforts to better manage our administrative costs," said Greg Jones, vice president -- California for State Farm. "At the same time, we remain committed to providing the superior customer service that has made us the insurer of choice for more California passenger car drivers than any other," Jones said, "Our performance is reflected by our excellent showing in the state Department of Insurance consumer complaint rankings." Policyholders who have the collision and comprehensive coverages will receive premium reductions. Comprehensive coverage pays for losses such as those from theft, vandalism, fire, storm damage and glass breakage. State Farm, also the largest auto insurer in the United States, insures nearly 3 million cars in California. Year Rate Reduction 1995 -1.7% 1996 -5.4% 1997 -5.3% 1998 -8.4% 1999 -3.0% 2000 -5.0% Cumulative -25.7% Year Dividend (in millions) 1997 $93.3 1998 $172 2000 $182.6 Totals $447.9