Drivers in San Francisco who are insured by 21st Century Auto Insurance will now be saving a yearly average of 3.4% on their premiums. The rate decrease will result in an average savings of $58 each year, and equals $34 million in reductions across the Golden State.
These new rates will apply to policies that were signed or renewed after June 21, 2009, and will also be beneficial to drivers in other areas. 21st Century clients in Los Angeles will get a 4.9% rate cut, equaling 4.9% a year, and drivers in Sacramento will be able to save $62 annually.
Auto insurance rates at 21st Century already dropped 5% earlier this year in January, and other insurance providers are taking notice. State Farm, GEICO and AAA of Southern California have all reduced their average rates.
The recession is not the only reason behind these cuts. Officials state that there are many other factors that affected their decision to decrease insurance rates. Southwestern states have recently seen less auto accidents, which are also decreasing in severity. The lower insurance rates are therefore a response to the increasingly safe habits of drivers in the area.
21st Century is one of the largest auto insurance providers, insuring over 1 million cars in California and 150 000 in Sacramento and covering almost 5% of the market for auto insurance.