Some Calif. Car Insurance Customers to Get Rebates, Rate Cuts

Black Toyota trees in backgroundFarmers Insurance announced yesterday that some of its California auto insurance customers will be eligible to receive a 10-percent premium rebate and an average 14.5-percent rate reduction.

Current customers holding policies with the Farmers Insurance Exchange that are scheduled for renewal between July 15, 2010 and January 15, 2011 are eligible for the rebate and may receive checks in the mail February of next year. The average rebate check is estimated to be worth $50 for each insured vehicle, totaling approximately $32 million.

According to the California Department of Insurance (CDI), the nearly 15-percent rate reduction will amount to approximately $72 million in savings.

The rate reduction means that consumers who are currently covered by Farmers Insurance Exchange will soon be paying the same, lower premium price as those with Farmers Auto Insurance’s other section, Mid-Century Insurance.

“This agreement with the California Department of Insurance enables Farmers Insurance to streamline and balance our pricing, product and coverage offerings in California for the benefit of our customers and our agents,” said Jeff Dailey, the president of personal lines for Farmers Insurance.

Roughly 640,000 vehicles in the State of California are covered through Farmers Insurance Exchange.

About Ben Zitney
Benjamin Zitney has been covering the auto insurance industry for the past 2.5 years. Before coming to Online Auto Insurance News, he produced an extensive company history of the 30-year-old California Joint Powers Insurance Authority and worked at the Cal State Long Beach Daily Forty-Niner as a reporter, copy editor and news editor.

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