USAA is reducing insurance rates for most of its California policyholders an average of 14.9 percent, the California Department of Insurance announced, noting it had approved the rate filing.
“This is good news for the approximately 200,000 USAA policyholders … Given the current economic conditions, we are elated to be able to help consumers keep more of their hard earned money and benefit from lower insurance premiums,” said California Insurance Commissioner Dave Jones.
Alice Gannon, senior vice president and chief actuary for USAA Property & Casualty Insurance Group, said the rate reduction was a result of “favorable trends in claims costs and [USAA’s] ability to keep expenses among the lowest in the industry.”
The 14.9 percent average decrease will amount to a $40 million rate decrease, or an average of $185 per home annually, said Todd M. Foreman, a Consumer Watchdog staff attorney who worked with the Department and USAA on the rate reduction. The rate decrease will become effective Nov. 30, 2011. USAA members will begin receiving their policy renewal packets 60 days prior to renewal starting on Sept. 30, 2011.
The last rate change for USAA’s California policyholders was in 2006, when rates were reduced by 22.1 percent. USAA insures approximately 200,000 homeowners in California and is the sixth largest homeowners and seventh largest auto insurer in the state.
Since January 2011, other insurers also have received DOI approval to reduce their rates. Among them:
- First National Insurance Company of America reduced homeowner rates 2.24 percent.
- Grange Insurance Association reduced homeowner rates 6.1 percent.
- Topa Insurance Co. reduced auto rates 9.71 percent.
- Tokio Marine & Nichido Fire Insurance Co. Ltd. reduced auto rates 4.65 percent.
- Personal Express Insurance Co. reduced auto rates 6.86 percent.
USAA offers insurance products to military personnel and their families.