In California, State Farm Asks for Auto Insurance Rate Hike

State Farm was one of several insurers in California requesting rate hikes this past month, with the major insurer asking for a revision to rates that would impact millions of policyholders next year if approved.

State Farm requested a 6.9 percent overall increase to California car insurance rates that would be effective Feb. 25, 2013. Among the causes for the increase are changes to the insurer’s Drive Safe & Save program

A total of 3.4 million policyholders would be affected by the increase, amounting to an average $53 increase for each policyholder. State Farm’s rate filing was accepted by state officials but has yet to be approved.

The changes are needed, according to the insurer’s statement within the rate filing, to “recognize our actuarially suggested income needs and have premiums that are as competitive as possible.”

A rate filing from Bankers Standard was also accepted by state regulators but has yet to be approved. The request would hike comprehensive and collision coverage by 12.5 percent each.

If approved, the increase would be effective Aug. 20 and would impact 2,853 policyholders, amounting to an average increase of $255 per policyholder. The insurer’s last rate revision was last July, when rates were increased by 5.9 percent.

A separate rate filing from Bankers Standard seeks to adjust rates for the insurer’s Owned Autos and Corporate Cars programs, amounting to an overall rate increase of 3.7 percent. The hike would result in an average of $52 more for each policyholder. The hike would be effective Nov. 15.

Another insurance rate filing was from Personal Express, which asked for a 4 percent increase overall. The increases would specifically go to bodily injury, collision, property damage, medical payment and comprehensive coverage, along with a 5.8 percent proposed decrease to uninsured motorist coverage. If approved, the changes would be effective Oct. 1.

Also, Starr Indemnity requested a 5.44 percent overall increase that would be effective Sept. 1 if approved.

About Charles Nguyen
Charles Nguyen is an enterprising journalist who reported for and the Desert Dispatch and was the editor in chief of the Guardian (the twice-weekly newspaper at the University of California, San Diego) before coming to Online Auto Insurance News.

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