San Antonio-based USAA announced that beginning in December it will reduce auto insurance rates by an average of 12 percent for its Texas members. The reduction follows a February 2004 rate cut of 4.5 percent.
Henry Viccellio, president of USAA Property and Casualty Insurance Group, attributes the lower rates to operating costs that are lower than industry average and the changes brought about by Senate Bill 14, which encourages a more competitive insurance market.
Viccellio commended Texas Insurance Commissioner Jose Montemayor, along with members of the state administration and elected officials for their work to implement SB 14. The legislature passed SB 14 last year. Elements of the law are now taking effect.
“As a member-owned association, we look for ways to pass savings on to members,” Viccellio said. “Senate Bill 14 allows USAA to offer Texas members lower rates, broader coverage and more choices.”
Viccellio also noted that insurers can now compete and set rates based on the insured risk, rather than reacting to the previous system of over-regulation.
The rate reductions will vary by location. They assume no change in insured operators, vehicles, coverage or deductibles. Rates will change for existing members when their policies renew.
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