State Farm announced plans to lower its overall auto insurance rates in Texas. The change, which represents a savings of nearly $104 million annually to State Farm’s Texas auto insurance customers, will be effective Feb. 26 for new business and March 26 for renewal business.
The change will mark the fifth time in less than three years that State Farm has lowered auto insurance rates in the state.
State Farm plans to lower its overall auto rate level in Texas by an average of 4 percent. Overall premium changes for individual motorists will vary, depending on where they live, the coverage they choose, type of car insured, who drives it and how much it is driven.
“When an insurer reduces the cost consumers pay for their product other companies view that as an indication that Texas is good place to business in the auto market. The reforms enacted by the 79th Legislature were in the best interest of consumers and have created a fiercely competitive market with a lot of choices for those who consume these products,” commented Jerry Johns, president of Southwestern Insurance Information Service.
State Farm is also enhancing discounts for auto customers with another qualifying State Farm product and introducing a new driver safety program for young drivers called Steer Clear. Young drivers who complete the program and maintain a clean driving record are eligible for a premium discount of up to 15 percent.
State Farm offers a variety of other discounts in Texas, including multi-car, academic achievement, good driver and renewal discounts.
About one in every 5 cars insured in Texas is insured by State Farm, the company said.
Source: State Farm Insurance Company; Southwestern Insurance Information Service
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