News: 2010 Press Release
For Release: July 27, 2010
Media Calls Only: 916-492-3566
Commissioner Poizner Announces Up to $100 Million Rate Reduction for Farmers Auto Insurance Customers
Consumers Have Saved $1.3 Billion in Auto Insurance Costs During Poizner’s Tenure
California Insurance Commissioner Poizner announced that hundreds of thousands of Farmers Insurance customers are eligible to receive an average rate reduction of 14.5 percent and a one time 10 percent insurance premium rebate, worth a combined total of up to $100 million.
"Farmers Insurance's $100 million rate reduction is great news for consumers who we know are feeling the brunt of the state's faltering economy," said Commissioner Poizner at a press conference overlooking a Los Angeles freeway. "Californians deserve to have as many insurance companies competing for their insurance business as possible. I'm glad Farmers Insurance is a part of this trend."
Customers of Farmers Insurance are insured through one of their two major auto insurance subsidiaries, Farmers Insurance Exchange and Mid-Century Insurance Co. Today's rate cut announcement applies to those under the Farmers Insurance Exchange banner. Farmers Insurance customers insured by the subsidiary, Mid-Century Insurance Co., are already receiving the new lower rate.
Those currently insured by Farmers Insurance Exchange and renew their policies between July 15, 2010 and Jan. 15, 2011 will receive a one-time 10 percent rebate on their premiums. That rebate is estimated to be worth approximately $50 per insured car or $32 million. In addition, those same customers will also receive an ongoing rate cut of approximately 15 percent worth an estimated $72 million.
Below is a summary of the rate decrease by media market:
||Percent Rate Reduction
|San Francisco, Oakland, San Jose
|Santa Barbara, Santa Maria, San Luis Obispo
Overall, Farmers Insurance insures about 2 million cars in California. Its Farmers Insurance Exchange subsidiary insures approximately 640,000 vehicles statewide.
Since Commissioner Poizner took office, he has worked to ensure an efficient and competitive auto insurance market and auto insurance rates have decreased by more than $1.3 billion.
Please visit the Department of Insurance Web site at www.insurance.ca.gov. Non media inquiries should be directed to the Consumer Hotline at 800.927.HELP. Callers from out of state, please dial 213.897.8921. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.
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