Department of Insurance announces $160 million in savings with homeowner insurance rate reductions - Los Angeles
News: 2013 Press Release
LOS ANGELES -- Insurance Commissioner Dave Jones today announced an average of 12.3 percent insurance rate reduction for Los Angeles homeowners insured with State Farm General Insurance Company. The reduction will result in an average annual savings of $100 for homeowners statewide. Los Angeles policyholders will save an average of $102 annually.
"As a major homeowner insurer in California, State Farm is demonstrating that insurers can serve customers well and operate profitably at the same time. As the economy continues to recover, this rate reduction will no doubt alleviate some of the financial burden many homeowners are experiencing," said Commissioner Jones. "I'm pleased to help Californian's hold onto more of their hard-earned money."
According to State Farm, 85 percent of policyholder premiums statewide will either decrease or remain the same under the new rates. The rate reduction is effective for policy renewals beginning April 15, 2013.
"This rate filing helps us deliver on our commitment to offer our customers a remarkable combination of excellent products and exceptional service at a competitive price," said Tom Conley, State Farm General Insurance Company President and CEO. "We appreciate the collaborative effort it took to bring forth this rate filing that we believe is good for our customers."
Other California counties will also see significant rate reductions:
- San Diego - 12.4 percent average
- Sacramento - 21 percent average
- San Francisco - 8.5 percent average
Since elected, Commissioner Jones has approved more than $1 billion in savings for California consumers and businesses. These savings resulted from the department's review of nearly 2,000 property-casualty rate filings under Proposition 103.
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- The overall rate reduction for State Farm General Insurance policyholders is an average of12.6 percent statewide.
Rate filing history
The Department of Insurance has approved several homeowner and automobile premium rate reductions, filed by the following companies, saving California consumers millions in premiums annually:
- QBE reduced lender-placed homeowner rates by 35 percent
- American Assurance Insurance Company reduced lender-placed homeowner rates by 30.5 percent
- American Modern Home reduced lender-placed homeowner rates by 21.3 percent
- Great American Assurance Company reduced lender-placed homeowner rates by 28 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
- Hartford Underwriters Insurance reduced automobile rates by 8.4 percent
- Progressive West Insurance reduced automobile rates by 6.5 percent
The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $259 billion in premiums annually in California. In 2014 the California Department of Insurance received more than 175,000 calls from consumers and helped recover over $63 million in claims and premiums. 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 or 213.897.8921. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.