California Auto Insurance Rate Reduction
California auto insurance policy holders are in for some good news as California implements a $34 million statewide rate reduction announced by California Insurance Commissioner Steve Poizner on Wednesday. This is according to the article “21st Century to cut premiums for California drivers an average of $50″ by Marc Lifsher on LATimes.com.
21st Century Insurance, which was recently acquired by Farmers Insurance Group, insures over a million California cars. This is about 5% of the private passenger car insurance market, so this is a big deal that they will be experiencing an average of $50 in cut costs on their auto insurance rates.
A Farmers Insurance Group spokesperson stated that they were able to drop rates because of less accidents and less severe accidents being claimed over the past years. Annual dollars saved will average $80 in Los Angeles county, $62 in Sacramento county and $58 in San Francisco. This is great news as California residents are trying to save money in this challenging economy.