The Automobile Club of Southern California announced it would be implementing a $101 million rate reduction for insurance policyholders in California, an average decrease of 5.4 percent.
As the fifth largest auto insurer in the state, the Auto Club insures more than 2 million California vehicles, according to the California Department of Insurance. Under the newly approved reduced rates, Auto Club auto policyholders save an average of about 5.4 percent, or about $100 per policy per year — a total of $101 million. Rate reductions will go into effect for new or renewed policies after April 1, 2009.
“I encourage all insurance companies to follow the example set by AAA in putting consumers first,” said California Insurance Commissioner Poizner. “AAA of Southern California has consistently stepped up to the plate, working to maintain affordable rates for consumers. This rate reduction further demonstrates the company’s professionalism and commitment to serving its policyholders.”
Thomas V. McKernan, CEO of the Auto Club, said this was his company’s second major auto rate reduction in three years. “With this rate reduction we will have saved policyholders $234 million since 2006,” he said.
Sources: Auto Club of the South, CDI