Auto Club to Cut California Auto Rates by 5.4%

 

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H Copyright 2009 Best Company, Inc.All rights reserved BestWire

6 February 2009 Friday 04:12 PM EST

223 words


Auto Club to Cut California Auto Rates by 5.4%

Chad Hemenway

SACRAMENTO, Calif.



Automobile Club of Southern California said it is reducing auto insurance rates by an average of 5.4% in the Golden State.

One of the largest auto insurers in the state, the rate of reduction is estimated to save policyholders more than $ 100 million, according to a statement by the Insurance Commissioner Steve Poizner of California's office.

Thomas V. McKernan, CEO of the Auto Club, said that this reduction is the second of the company over the past three years. He said the Auto Club has saved $ 234 million police since 2006.

Reductions in rates are effective April 1 for new or renewed policies.

The Commissioner also approved reductions in mercury levels Insurance Group auto, renters and homeowners insurance Geico and State implemented rate reductions averaged 10.8% for its clients ( BestWire, July 16, 2008).

Auto Club Enterprises Insurance Group currently has a Best's financial strength rating of A + (Superior).

In 2007, the top five writers of private passenger automobile insurance in California, based on AM Best Co. state / line data, were: State Farm Group, with 12.3% share market; Farmers Insurance Group, with 10.9%; Mercury General Group, with 9.8% Allstate Insurance Group, with 9.1%, and Auto Club Enterprises Insurance Group, with 8.9%.

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

7 February 2009

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