Safeco To Cut Homeowners, Commercial Rates

Seattle-based Safeco has announced it will be cutting rates for California homeowners in 2007 an average of 20 percent. The move is expected to affect some 200,000 Safeco home and business customers in California, according to the company. Additionally, the company is reducing business insurance prices for its commercial property, general liability, commercial auto and workers compensation insurance products. Rate reductions in those product lines range from 6 to 17 percent, on average, compared to 2006.

According to the company, regional rate reductions for homeowners will range from 5 percent to 38 percent, affecting new customers immediately, and existing customers when they renew their policies. Customers who have newer homes are eligible for other discounts.

In addition to the statewide home insurance rate reductions, the company:
* Has cut motorcycle insurance rates by 6 percent statewide, compared to 2006 levels.
* Is providing discounts for property owners and renters who also purchase auto insurance from Safeco.
* Expects to launch new home, auto and commercial product improvements in California in 2007 that will allow customers to extend their coverage, providing extra protection for emergencies or disasters.

Safeco has been able to reduce rates due to improvements in productivity, combined with declining loss trends in many product lines, said Tim Mikolajewski, general manager of Safeco Insurance operations in California.

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Source: Safeco