Commissioner approves reduced rates saving State Farm consumers millions
News: 2017 Press Release
"The department's rate analysts reviewed State Farm's rate filings and determined that the rates should be lowered, resulting in an estimated total premium savings of $18 million annually to California consumers," said Insurance Commissioner Dave Jones. "Once again, Californians have benefited from the insurance commissioner's rate regulation authority."
As part of the department's annual Excessive Rates Review Project, letters were sent to insurers where there was concern that existing rates for a given line of insurance may be excessive. Companies in receipt of an excessive rates letter were asked to demonstrate that its rates were not excessive or submit a rate decrease filing to be reviewed by the department. The department's rate analysts reviewed the State Farm rate filings and found that the company's requested rate decreases needed to be further reduced. The company lowered their rates on those insurance products where the department found the data supported a reduction.
The first rate reduction is for State Farm's standalone boat owner's policies that can cover liability, medical payments and physical damage for a variety of watercraft including sailboats, outboard, inboard and inboard/outboard boats. The second is State Farm's standalone Jewelry and Personal Articles program used to insure higher values and variety of items including scheduled jewelry, silverware, fine arts, sports equipment, memorabilia and collectibles like stamps and coins, which offers more deductible options than are offered with their standard homeowner policies.
Since Commissioner Jones took office in 2011, the department has reviewed more than 40,000 rate filings and saved consumers and businesses over $2.562 billion through rate reductions. Whether a particular policyholder receives a rate reduction and how much, depends on their individual policy.
- Boat owner programs -15.2 percent reduction as of August 15, 2017, estimated premium savings for 44,244 policyholders is $2,178,672.
- Jewelry & Fine Arts program -38.4 percent reduction as of August 1, 2017, estimated premium savings for 154,781 policyholders is $16,052,603.
The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $310 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $469 million in claims and premiums. Please visit the Department of Insurance website at www.insurance.ca.gov. Non-media inquiries should be directed to the Consumer Hotline at 800.927.4357. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.