State Farm Slashes California Car Insurance Rates

Personal Injury Law News – State May 14, 2009

Los Angeles – State Farm has recently approved an 8 percent rate cut for the company’s auto insurance policyholders in the state. Insurance Commissioner Steve Poizner said the new rates will take effect July 6 this year.

The rate reduction is expected to save an average of $66 annually for each policyholder. In California where State Farm has 3.3 million customers, the savings could amount to $ 219 million.

Poizner said the deal was made because the company risked the idea of having an administrative law judge delay or change the lower rates.

Consumer advocates however, urged the state to implement more drastic cuts, saying the rates should be dropped by about 350 million, or 13 percent.