SACRAMENTO, Calif., Aug. 17 /PRNewswire/ — State Farm Mutual Automobile Ins. Co today announced it has asked the California Department of Insurance to approve an eight percent auto insurance rate decrease in addition to the initial pricing changes required by the new auto rating regulations.
When combined with the company’s $212 million decrease in 2004 and $110 million in 2005, the $204 million in savings from the current rate reduction will bring the company’s total savings for its more than three million California auto insurance policyholders to over one-half billion dollars since October 2004. Approximately 2.8 million drivers will see premium decreases from the rate change. State Farm credits the series of rate reductions to improved loss trends.
If approved by the Department, policyholders who have maintained their policies with State Farm for an extended period of time and those who also have property insurance with the company — home and condo owners or renters insurance — will all receive enhanced benefits under the new rates. A driver with three years continuous coverage will see his or her loyalty discount increase from eight percent to 10 percent. A policyholder with at least six years of continuous coverage will see his or her discount go from 16 percent today to 20 percent under the revised plan.
The discounts for insuring homes and autos with State Farm will increase from 10 percent to 12 percent for renters; 12 percent to 14 percent for condo owners and 15 percent to 17 percent for home owners. Home owners who also have a Personal Liability Umbrella Policy with State Farm will received a 20 percent discount, up from the current 18 percent.
These savings are in addition to other discounts policyholders may receive, such as the 20 percent California Good Driver Discount.
Today’s request with the Department also includes State Farm’s initial compliance filing for the new Prop. 103 rate regulations. With this filing State Farm will have less weight on territory than on driver safety record. Under the regulations issued by the Department and upheld by a Sacramento Superior Court ruling last week, insurers have to comply with at least 15 percent of the plan’s requirements now, with the rest of the adjustments factored in over the next two years.
State Farm Mutual Automobile Ins. Co
CONTACT: Bill Sirola of State Farm, +1-916-321-6927