California Insurance Commissioner Steve Poizner along with officials from California State Automobile Association Inter-Insurance Bureau (CSAA-IIB, or AAA of Northern California) in Sacramento and San Francisco announced the Department of Insurance has approved a rate reduction of 6.5 percent for personal auto insurance policyholders in California. AAA’s overall rate reduction is expected to total a $100.5 million in savings for California policyholders.
“AAA of Northern California is raising the bar for auto insurance companies across the state, demonstrating that profitability and consumer satisfaction go hand-in-hand,” Poizner said.
AAA of Northern California is the sixth largest auto insurer in the state, insuring nearly 1 million California drivers. Under the newly-approved reduced rates, AAA customers will save an average of $106 per policy. The new rates go into effect December 15. This rate reduction will impact approximately 156,000 policyholders in the Sacramento area and 519,000 in the San Francisco Bay Area.
Additionally, AAA has filed to become 100 percent compliant with CDI’s auto rating factor regulations. Under these regulations, rates will be based primarily on three factors: driving record, number of miles driven, and years of driving experience. Under old regulations, rates were could factor in other optional rating factors, such as marital status, gender and zip code.
“I’m also pleased to report that Californians have saved more than $700 million on their auto insurance rates this year,” added Commissioner Poizner.
Source: CDI
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