State Farm to Cut Premiums for Some Alabama Policyholders

Some State Farm customers in Alabama will be paying a bit less on their auto insurance premiums starting next month, when the company implements an overall rate cut for policyholders in that state.

A State Farm spokesman confirmed Thursday that the company is reducing rates by an average of 2 percent statewide as of Nov. 21, which is expected to save policyholders throughout Alabama a total of $10.2 million a year.

“We anticipate less frequent and less severe claims in Alabama, and that’s why we’d like to pass the savings along to our policyholders there,” spokesman Roszell Gadson said in a telephone interview.

Alabama Department of Insurance spokesman Ragan Ingram confirmed in an email that the overall rate reduction was undertaken by State Farm with no prompting from state officials.

While the announcement will be welcome news for many State Farm customers seeking cheap Alabama car insurance, company officials said not all types of coverage will decrease in price.

Premiums for collision coverage—which pays for damages caused by the policyholder colliding with another vehicle or object—are expected to fall, but the cost of medical payments coverage is going up, officials said.

And some customers will pay more for liability and for comprehensive coverage, which pays for losses including those that result from theft, storms and other weather-related events, vandalism and damage caused by running into a deer or other animal.

State Farm said that overall premiums will continue to vary between customers based on factors including the type of policy and vehicle, mileage and where a policyholder lives.

To research how State Farm performs when handling claims, consumers can read user-submitted State Farm auto insurance reviews online.

About Matthew Morisset
Matthew Morisset is a proud alumnus of the University of Redlands, where he obtained a degree in English Literature. Utilizing his passion for analysis and writing, Matthew looks for important trends in the auto insurance industry and their implications for consumers and the market as a whole.

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