Posted On: April 4, 2007, 2:40 pm CDT

Posted By: Jewel

"Customers of State Farm Florida will see their homeowner's rates drop by about 7 percent on average statewide starting this summer because of a new law that makes more state backup coverage available to insurers. Bloomington, Ill.-based State Farm filed for the decreased rate Thursday. Premium reductions will vary widely, from as low as about 1 percent for some customers to as much as 10 percent for others, depending on where they live and what type of home they're insuring. While wind coverage rates are expected to drop by nearly 25 percent statewide on average, State Farm has said all along that its rates wouldn't go down as much because its backup coverage was already cheaper than what many other companies pay. State Farm buys most of its reinsurance from its own parent company, saving money over what it would cost to buy it from other reinsurers."- Lakeland Ledger


I am sure they are raising rates in certain areas. But, if you read the above article they are lowering rates in others. If only they could strike a happy medium, huh?