Breaking News about Car Insurance

State Farm to Cut Wisconsin Auto Insurance Rates in 2012

State Farm logoSome State Farm customers in Wisconsin could be kicking the New Year off with savings on their auto insurance, with the company announcing it is trimming its overall rates there by an average of 2.6 percent.

The overall reduction, which takes effect Jan. 16, is expected to save policyholders statewide $7.9 million a year.

State Farm was the second largest private auto insurer in Wisconsin in 2010. That year, the company wrote more than  $326 million in premiums, accounting for about 13 percent of the market.

The move follows similar overall cuts in other states in recent months. But as in those cases, it does not mean that all State Farm policyholders will see a lower bill when they compare car insurance premiums from month to month.

Company officials said in a news release that the cost of liability coverage will decrease for most of its Badger State policyholders. But medical payments will become more expensive for some and less pricey for others, as will collision coverage—which pays for damage to a policyholder’s own vehicle caused by him or her colliding with another car—and comprehensive coverage, which pays for losses due to theft, fire, severe weather and vandalism.

A State Farm regional spokeswoman could not be reached for comment early Tuesday, but officials have said rate adjustments on auto insurance in other states have been prompted by unexpectedly low volume and size of claims filed by policyholders in those states.

The company announced earlier this month it is reducing overall rates in Illinois by 2 percent on average. That change, which takes effect Dec. 26, is expected to save customers a total of nearly $34 million annually.

Other recent adjustments include average dips of 2 percent in Alabama and 2.2 percent in Georgia.

The coverage provider says premium changes for motorists in each of those states will continue to vary based on factors including where they live, what kind of vehicle is covered by the policy, who drives it and for how many miles.


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

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