RateWatch: Farmers Cuts Rates, Issues Rebates in California

Posted & filed under California Car Insurance, Rate Watch.

Great news for Californians looking to save money on auto insurance: state Insurance Commissioner Steve Poizner announced today that Farmers Insurance customers will be eligible for an average rate reduction of 14.5 percent as well as a one-time-only insurance premium rebate of 10 percent. This reduction applies to Farmers Insurance customers who are insured either through Farmers Insurance Exchange or Mid-Century Insurance Co., though customers insured by the latter subsidiary are already receiving the new lower rates.

Existing customers of Farmers Insurance Exchange who renew their policies between July 15, 2010 and January 15, 2011 will receive the one-time 10 percent rebate, which is estimated at about $50 per insured car. In addition, they will also receive an ongoing rate cut of roughly 15 percent.

Overall, Farmers Insurance insures about 2 million cars in California. Its Farmers Insurance Exchange subsidiary insures approximately 640,000 vehicles statewide.

Since Commissioner Poizner took office, he has worked to ensure an efficient and competitive auto insurance market and auto insurance rates have decreased by more than $1.3 billion

California consumers who want to know more can read a review of Farmers Insurance before asking about rate quotes.