It is estimated that the average premiums will drop by 12.6 percent across the state, starting April 15.
The largest homeowners insurance company in California has just announced that it will be reducing its rates across the state by an average of 12.6 percent for over one million customers, as of halfway through April.
The average customer should expect to see an annual reduction in premiums of about $100 in 2013.
The actual drop that will be seen in the rates paid by consumers will vary from one area to the next. For instance, in Los Angeles County, rates are predicted to fall by an average of 12.3 percent. Similarly, in San Diego County, they will decrease by an average of 12.4 percent. However, residents of Orange County will see their homeowners insurance rates fall by a notably higher 14.1 percent, on average. Sacramento County will see a huge 21 percent drop in their rates, though San Francisco will experience a comparatively smaller 8.5 percent reduction.
This reduction in homeowners insurance prices will benefit approximately 85 percent of its California customers.
At the moment, State Farm has around 1.6 million homeowners insurance customers within the state, according to its own data. Around 250,000 renters insurance customers will also be watching their premiums fall upon renewal time this year, said officials. The total savings across the state is an estimated $160 million after all of the reductions have been set into place.
The announcement of the dropping premiums was made in Los Angeles at a conference that was held by Dave Jones – the commissioner of the state – as well as the CEO of State Farm, Tom Conley.
Jones said that “State Farm is demonstrating that insurers can serve customers well and operate profitably at the same time.” He also went on to add that “As the economy continues to recover, this rate reduction will no doubt alleviate some of the financial burden many homeowners are experiencing.”
This most recent homeowners insurance rate reduction by State farm follows hikes that were implemented in January 2009, which was an average of 6.9 percent, as well as another just over a year later at 6.9 percent.