NEWSROOM

State Farm® Implements Annual Vehicle Insurance Ratings

Bloomington, Ill. (November 21, 2012) — Taking advantage of its extensive claims data, State Farm Insurance is implementing its annual vehicle insurance ratings for specific makes and models of vehicles.

State Farm uses its claim payment amounts for vehicle damage and theft to create a collision damage index (CDI) and a damage and theft index (DTI). The CDI determines which vehicles qualify for what level of premium for the collision coverage while the DTI determines which vehicles qualify for what level of premium for the comprehensive coverage.

The company uses a similar program based on an evaluation of the cost of claims involving injury to occupants of the insured vehicle. Depending on that cost, makes and models of vehicles qualify for varying levels of vehicle safety discounts (VSD).

State Farm also uses its claim payment amounts for damage to other vehicles and injury to the occupants of those vehicles to create a liability rating index (LRI). The LRI determines which vehicles qualify for what level of premium for the liability coverage.

CDI – Models generating lower payment for collision damage to the insured vehicle are generally charged from 10 to 40 percent less than the standard collision coverage premiums for vehicles in their price range. Models generating higher payment for collision damage to the insured vehicle are generally charged from 10 to 40 percent more than the standard premiums for that coverage for vehicles in their price range.

DTI Models generating lower payment for theft of and non-collision damage to the insured vehicle are generally charged from 10 to 40 percent less than the standard comprehensive coverage premiums for vehicles in their price range. Models generating higher payment for theft of and non-collision damage to the insured vehicle are generally charged from 10 to 40 percent more than the standard premiums for that coverage for vehicles in their price range.

VSD Models generating lower payment for injury to occupants of the insured vehicle are awarded vehicle safety discounts of up to 40 percent on the medical payments and personal injury protection coverages.

LRI Models generating lower payment for damage to other vehicles and injury to occupants of those vehicles will be charged less than the standard liability coverage premiums. Models generating higher payment for damage to other vehicles and injury to occupants of those vehicles will be charged more than the standard liability coverage premiums.

These ratings do not apply in Massachusetts, North Carolina, and Canada. Approval of these ratings is pending in California.

Attached is a link to the collision damage indexes (CDIs), damage and theft indexes (DTIs), vehicle safety discounts (VSDs) and liability rating indexes (LRIs) for most 2010, 2011, 2012 and 2013 makes and models. Those indexes can be viewed on the Vehicle Ratings page on statefarm.com®.

National Media Contacts

Local Contacts

Media Contacts

Dick Luedke
State Farm Public Affairs
309-766-3635
dick.luedke.h2hj@statefarm.com

About State Farm®

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 statefarm.com® or in Canada statefarm.ca®.