AAA Minnesota/Iowa announced today significant auto insurance rate reductions in Minnesota with a combined impact of an 8.9 percent decrease. AAA estimates over 90 percent of their current insureds will receive rate reductions and more than 50% of those reductions will be in excess of 10 percent.
Major changes in the automobile program include: overall reductions in the rates for all coverages except uninsured and underinsured motorists coverages, larger discounts for accident free drivers, and increased multiple car discounts for families with young drivers.
“Understanding that families with young drivers tend to pay some of the highest premiums, we wanted to give hard-working families an insurance break,” said Randy Williams, President of AAA Minnesota/Iowa.
The Minnesota automobile rate decreases will affect new business policies effective on and after June 26, 2006, and renewals effective on and after July 15, 2006.
AAA offers automotive, travel, insurance and financial services to more than 48 million members in the United States and Canada. AAA Minnesota/Iowa is part of The Auto Club Group, with 4.1 million members in eight Midwest states. The automobile insurance policies are underwritten by the Auto Club Insurance Association.