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News: 2013 Press Release

For Release: May 22, 2013
Media Calls Only: 916-492-3566
$70 million rate reduction approved for Automobile Club of Southern CA drivers
Over one million Southern California motorists to have rates slashed

LOS ANGELES - Insurance Commissioner Dave Jones was joined by Robert Bouttier, CEO of the Automobile Club of Southern California, to announce an auto insurance rate reduction for Auto Club policyholders in California totaling $70 million. This represents an overall decrease of 4.1 percent and is effective for new or renewed policies after July 1, 2013.

"With the economy still recovering, this significant decrease delivers savings to more than one million drivers in Southern California," said Commissioner Jones. "The Auto Club has again stepped-up and put their policyholders' interests first. They have a history of rate decreases and have set an example I hope other insurance companies will follow."

New discounts being introduced include increased multi-policy discounts for homeowners', new group discounts for alumni association members, expanded discounts for medical professionals (doctors, nurses, dentists) and CPAs, and student-away discounts for children who are away studying at college and don't have a vehicle. 

"We want to thank the Commissioner for approving our rate decrease," said Robert T. Bouttier, President and CEO of the Auto Club. "This is the fourth auto rate reduction over the past nine years, collectively saving policyholders over $380 million and continuing to fulfill our ongoing commitment to offer our members the best insurance at the best possible price."

Since Commissioner Jones took office through April 30, 2013 the Department reduced the overall amount of requested rate increases by $311 million and approved over $962 million in rate reductions, totaling over $1.27 billion in savings to California consumers and businesses. This total includes approximately $460 million in rate reductions for personal auto coverage and $256 million in rate reductions for personal homeowners' coverage.

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Media Notes

The Automobile Club of Southern California was ranked by A.M. Best as the fourth largest auto insurer and the sixth largest home insurer in California in 2012. 

Event photos available.

Previous Auto Club rate decreases:

  • 5.0 percent decrease effective 8/1/2004 ($89 M)
  • 7.0 percent decrease effective 12/1/2006 ($123 M)
  • 5.4 percent decrease effective 4/1/2009 ($101.2 M)
  • 4.1 percent decrease effective 7/1/2013 ($70 M)

The Automobile Club of Southern California serves members in the following California counties: Inyo, Imperial, Kern, Los Angeles, Mono, Orange, Riverside, San Bernardino, San Diego, San Luis Obispo, Santa Barbara, Tulare, and Ventura. www.calif.aaa.com.

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The California Department of Insurance, established in 1868, is the largest consumer protection agency in California, regulating the $123 billion insurance marketplace. In 2012 the California Department of Insurance received more than 160,000 calls from consumers and helped recover over $64 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. Out-of-state callers, please dial 213.897.8921. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.

If you are a member of the public wishing information, please visit our Consumer Services.

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