State Farm Drops Auto, Homeowners Rates Nearly $500 Million in Calif.

State Farm and California Insurance Commissioner John Garamendi announced that the company’s nearly 3 million auto and 1.4 million homeowners, renters and condo owners in California will see about $500 million in savings in their annual premiums when the company’s rate decreases are granted formal approval by the Department of Insurance.The combination of auto rate reductions and home, condo and renters policy decreases is the largest rate cut in the company’s history in the state.

Auto insurance rates, scheduled to take effect in early March, are proposed to decrease 10.1 percent, totaling some $259 million, the company noted. Homeowners, including condo owners and renters, will see a drop of 20 percent, for $230 million in savings, when the plan is approved. Currently, the homeowner rates are proposed to take effect in late April.

The company indicated the most significant decreases will be felt by policyholders with both auto and home insurance. Discounts will increase depending on how many years the policyholder has been insured by State Farm, what types of policies they have and other factors.

Source: State Farm