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Core News Facts
- Auto rate cut of eight percent approved by California Department of Insurance, effective July 6, 2009
- Since 2004, State Farm California has reduced auto rates four times, and returned a dividend, for a total savings to policyholders of more than $1 billion in premiums
- Besides rate reductions, State Farm California policyholders also received a 15 percent dividend in March of 2007 totaling $195 million
- State Farm Mutual Automobile Insurance Co. is the largest individual auto insurer in the state with 3.3 million policies
Helpful Links
- www.statefarm.com
- www.statefarm.com/canewsroom
WOODLAND HILLS, Calif., May 14 /PRNewswire-HISPANIC PR WIRE/ -- State Farm's 3.3 million California auto insurance policyholders received welcome news today as the state Department of Insurance announced it has approved an eight percent, $219 million rate cut.
The 8 percent rate cut is a statewide average. The actual savings for individual policyholders may be different, depending on a number of rating factors.
State Farm's California Senior Vice President Rand Harbert pointed out the reduction was possible because of the improving long term trends in claims submitted to the company by policyholders.
"Our premiums are based on what we calculate we will need in the future to meet the obligations we have to our policyholders," the Woodland Hills-based executive said during a press conference with Commissioner of Insurance Steve Poizner, "and because our recent experience and trends are favorable, it allows us to pass along those savings to our customers in the form of lower rates."
"We are pleased to be able to help our customers at a time when many people are struggling financially due to the economic challenges we all face," added Harbert.
State Farm reduced auto rates in California by 7.6 percent in 2004 ($215 million); 4.2 percent in 2005 ($110 million); and 10.1 percent in 2007 ($266 million). The company also returned $195 million to policyholders in the form of a dividend in March of 2007. The effective date for the new rate cut is July 6, 2009.
About State Farm
State Farm insures more cars and homes than any other insurer in the U.S., is the leading insurer of watercraft and is also a leading insurer in Canada. State Farm's 17,000 agents and 68,000 employees serve about 80 million policies and accounts: more than 78 million auto, fire, life and health policies in the United States and Canada, and more than 1.9 million bank accounts. State Farm Mutual Automobile Insurance Company is the parent of the State Farm family of companies. State Farm is ranked No. 32 on the Fortune 500 list of largest companies. For more information, please visit statefarm.com(R) or in Canada statefarm.ca(R).
SOURCE State Farm Insurance California
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