News: 2012 Press Release
For Release: August 28, 2012
Media Calls Only: 916-492-3566
Insurance Commissioner Dave Jones Announces $40 Million In Savings From Homeowners Insurance Rate Reductions
AAA Northern California, Nevada & Utah Insurance Exchange to Decrease Rates by 9.3 percent; 150,000 Bay Area and 102,000 Sacramento Homeowners to Save an Average of $100 Annually
Insurance Commissioner Dave Jones today announced a 9.3 percent rate reduction in homeowners insurance by the AAA Northern California, Nevada & Utah Insurance Exchange. This reduction comes as a result of an agreement between the California Department of Insurance (CDI) and the insurance company. Locally, the rate reduction will impact approximately 150,000 policyholders in the Bay Area and 102,000 in Sacramento.
"This rate reduction will provide much-needed financial relief for homeowners and will no doubt help consumers keep more of their hard earned dollars in today's tight economy," Commissioner Jones said. "Our priority at the Department is to fight for consumers to make sure homeowner insurance rates are fair and company profits are not excessive, and I feel strongly that the rate reduction has achieved this."
"We're pleased to be able to pass along the savings we've experienced due to lower claims costs to our customers," said AAA Northern California, Nevada & Utah Insurance Exchange CEO Paula Downey. "This reduction means our average insurance customer will save nearly $100 on their homeowner's policy."
The overall rate reduction, impacting 423,000 policyholders, translates to roughly $40 million in savings for consumers. The rate reduction is effective December 1, 2012. Policyholders will begin receiving policy renewal packets 60 days prior to the renewal starting on October 1, 2012. This is the most recent homeowner rate reduction by an insurer in California. Prior to this reduction, the insurer reduced its homeowner rates by 10.5 percent in 2008.
"I would like to thank AAA Northern California, Nevada & Utah Insurance Exchange for their cooperation in coming to an agreement that will benefit thousands of California homeowners," Jones added.
Since taking office, Commissioner Jones has approved several homeowner and automobile premium rate reductions, filed by the flowing companies, saving California consumers millions in premiums annually:
Meritplan Insurance reduced homeowner rates by 35 percent
Pacific Specialty Insurance reduced homeowner rates by 21.5 percent
Unitrin Direct Property & Causality reduced homeowner rates by 14 percent
Standard Fire Insurance reduced homeowner rates by 6.4 percent
Travelers Property & Casualty Insurance reduced homeowner rates by 6.2 percent
Universal North America Insurance reduced homeowner rates by 3.8 percent
California Casualty Indemnity reduced automobile rates by 21.7 percent
USAA General Indemnity reduced automobile rates by 20 percent
Twin City Fire Insurance reduced automobile rates by 13 percent
GEICO reduced automobile rates by 10.7 percent
Hartford Underwriters Insurance reduced automobile rates by 8.4 percent
Progressive West Insurance reduced automobile rates by 6.5 percent
Since being sworn into office, Commissioner Jones has led CDI in reducing the overall amount of requested insurer rate increases by $69 million and approved over $482 million in rate reductions, totaling over $551 million in savings to California consumers and businesses. This total includes approximately $132 million in rate reductions for personal auto coverage.
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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