California Commissioner: $160M in Homeowner’s Rate Reductions

An average of a 12.6 percent insurance rate reductions is in store for California homeowners insured with State Farm General Insurance Co., according to an announcement from California Insurance Commissioner Dave Jones on Thursday.

The reduction will result in an average annual savings of $100 for homeowners statewide.

“As a major homeowner insurer in California, State Farm is demonstrating that insurers can serve customers well and operate profitably at the same time,” Jones said in a statement. “As the economy continues to recover, this rate reduction will no doubt alleviate some of the financial burden many homeowners are experiencing.”

According to State Farm, 85 percent of policyholder premiums statewide will either decrease or remain the same under the new rates. The rate reduction is effective for policy renewals beginning April 15.

“This rate filing helps us deliver on our commitment to offer our customers a remarkable combination of excellent products and exceptional service at a competitive price,” Tom Conley, State Farm General Insurance Co.’s president and CEO, said in a statement.