State Farm Lowers Auto Rates in Georgia

 

Thursday, Aug 06,2009, 12:27:21 PM   Click:

Lower than expected claims State Farm has reduced the rates of auto insurance in Georgia, an average of 1.5% by the state.

The new rates shall come into force 17 August, the company said in a statement. State Farm is the largest auto insurer in the state, with nearly $ 1.17 billion in direct premiums written, according to AM Best data.

The changes may vary according to the police, but the premiums for liability, medical payments, collision and comprehensive will, for many, said State Farm. The last rate cut is equal to annual savings of $ 15.9 million for State Farm customers in Georgia.

State Farm chose to keep rates relatively flat late last year when a new law was passed Oct. 1 that allowed file-and-use for private passenger auto rates above mandated minimum liability limits. As many as 14 companies looked to raise rates after the law was passed, Commissioner John Oxendine said at the time (BestWire, Dec. 2, 2008). State Farm also lowered rates an average of 1.5% in February.

State Farm Group currently has a Best's Financial Strength Rating of A++ (Superior).

The top five writers of private-passenger automobile insurance in Georgia, according to 2008 A.M. Best state/line product information based on direct premiums written, were: State Farm Group, with 22.3%; Allstate Insurance Group, 13.1%; Progressive Insurance Group, 11.6%; Berkshire Hathaway Insurance Group, 7.9% and USAA Group, 5.4%.

(By Chad Hemenway, associate editor, BestWeek: Chad.Hemenway@ambest.com)