Policyholders insured by the Automobile Club of Southern California can expect to see their rates lowered by an average of 4.1 percent in July, according to an announcement on Wednesday from the state Department of Insurance and the Auto Club’s CEO.
Jeffrey Spring, the corporate communications manager for the Automobile Club of Southern California, told Online Auto Insurance News (OAIN) that the primary reason rates are being lowered $70 million overall is that the insurer has had to pay out less on claims in recent history. Spring said both the number of claims being filed and the size of the average claim have dipped.
The California rate reductions are set to kick in for new and renewing policyholders on July 1.
According to the CEO of the Auto Club, this is the company’s fourth rate reduction in the past nine years, amounting to a total of $383 million in slashed rates. He did not say whether or how many rate increases had been approved during that period.
New Discounts for Auto Club Policyholders
In addition to the new rate reduction, Auto Club policyholders will also have access to a batch of new discounts starting in July. The following are the new discounts introduced during Wednesday’s press conference:
- Multi-policy discounts for homeowners
- Group discounts for alumni association members
- Expanded discounts for doctors, nurses, dentists and CPAs
- Discounts for policies covering children who are away at college and don’t have regular access to the insured vehicle
According to Spring, even though the new discounts are being introduced at the same time as the overall rate reduction, the two actions are “somewhat separate.”
(Photo credit: California Department of Insurance)