State Farm is cutting overall rates for Georgia auto insurance policyholders by a statewide average of 2.2 percent due to an expected drop in the number and size of claims for damages, a company spokesman reported Monday.
“We anticipate less frequent and less severe auto claims in Georgia and would like to pass this savings on to our policyholders,” spokesman Justin Tomczak said in an email.
The rate reductions, which take effect Nov. 21, are expected to save State Farm customers statewide a total of $23.3 million a year. But not all types of coverage will drop in price, according to company officials, who said overall premium sizes will vary between customers depending on types of policies purchased and other factors, including where policyholders live, what type of vehicle they drive and how far they drive it.
While the cost of collision and comprehensive portions of policies will decrease, coverage for liability and medical payments will become more expensive for most customers, according to State Farm.
Mitch Madaglia, a spokesman for the Office of Insurance and Safety Fire Commissioner Ralph Hudgens, said the overall rate reduction was undertaken independently by State Farm and not in response to any prompting by state regulators.
“This was a market decision that they made all on their own,” Madaglia said in a phone interview. “At this time we don’t have any other major insurers in Georgia that have taken such an action, but we are hopeful that it is a trend.”
To research how State Farm performs when handling claims, consumers can read user-submitted State Farm auto insurance reviews online.