State Farm to trim auto insurance rates in Florida
Oct 6, 2008
Orlando Sentinel--October 4, 2008
By Julie Patel | South Florida Sun-Sentinel
State Farm Mutual Automobile Insurance Co., the largest automobile insurer in Florida, will slightly lower its statewide average annual premium this month, the insurer said Friday.
The rate cut, which will take effect Oct. 27, will save consumers $6.5 million on 2.5 million policies statewide. That will be an average savings of $2.60 per policy a year. But the effect for individual policyholders will vary greatly depending on several factors.
The 0.3 percent rate cut, combined with decreases in 2004, 2005 and 2007, means State Farm’s auto insurance premiums will be 7 percent less than they were in 2003.
State Farm has been able to lower rates during the past few years because its anticipated costs have fallen, said company spokesman Justin Glover.
"Overall premium changes for individual motorists will vary depending on factors such as the coverages they carry, the discounts for which they qualify, where they live, the kind of car insured, who drives it and how much it is driven," State Farm wrote in a statement.
The move comes weeks before State Farm Florida Insurance Co. is expected to defend a proposed 47 percent average statewide increase for homeowners’ insurance policies before an administrative law judge. The Office of Insurance Regulation has said it plans to reject the increase.
$6.5 million
Savings to consumers statewide
2.5 million
Policies affected statewide
$2.60
Average savings per policy