Sacramento, CA (May 17, 2013) The California Department of Insurance has approved a filing by State Farm Mutual Automobile Insurance Company, the largest insurer of autos in the nation, to raise its overall rate level in California by an average of 4.2 percent. The projected effective date is August 12, 2013 for new business and at the first renewal date after August 12, 2013 for existing policies.
Over the past few years, claim costs, particularly for bodily injury, property damage and medical payments, have risen in California. Loss history is a determining factor for rate increases. To meet future claims obligations, rates must be adequate in relation to expected losses.
This rate filing also expands the Drive Safe & Save Program to include additional options for customers to report mileage driven. Customers participate in DSS by reporting mileage via optional telematics devices or by self-reporting directly to State Farm. In addition to self-reporting or using OnStar to report mileage driven, customers may now use Ford Sync or Hughes Telematics Inc.s In-Drive.
Overall the proposed premium changes for individual motorists will vary depending on a variety of factors such as personal driving experience, mileage driven, number of years licensed and the coverage they carry.
The last auto rate change for California State Farm customers was an 8 percent decrease in 2009, and the last rate increase was 4.9 percent in 2003. Approximately 3.5 million automobiles are insured by State Farm in California.
State Farm and its affiliates are the largest provider of car insurance in the U.S. and is a leading insurer in Canada. In addition to providing auto insurance quotes, their 17,800 agents and more than 65,000 employees serve 81 million policies and accounts - more than 79 million auto, home, life and health policies in the United States and Canada, and nearly 2 million bank accounts. Commercial auto insurance, along with coverage for renters, business owners, boats and motorcycles, is also available. State Farm Mutual Automobile Insurance Company is the parent of the State Farm family of companies. State Farm is ranked No. 43 on the Fortune 500 list of largest companies. For more information, please visit http://www.statefarm.com or in Canada http://www.statefarm.ca.