State Farm to Trim Pennsylvania Auto Insurance Rates

Some Pennsylvanians may be getting a break on their auto insurance premiums this holiday season, with State Farm announcing this week it is cutting its overall rates in the Keystone State by an average of 1.3 percent.

The overall reduction, which takes effect Dec. 26, will save customers statewide $16.5 million a year, company officials said.

A State Farm spokesman said the move, which follows similar reductions last month in Georgia and Alabama, is in response to the company’s claims experience in the state.

“We anticipate less frequent and less severe claims in Pennsylvania, and we’d like to pass that savings on to our policyholders,” spokesman Dave Phillips said in an email.

While the news is sure to be welcomed by State Farm customers who are seeking a break on their Pennsylvania car insurance premiums, company officials said not all types of coverage will decrease in price.

Premiums for collision coverage—which pays for policyholders’ own property damages caused by their colliding with another vehicle or object—are expected to decrease by the largest amount. But company officials say the cost of liability, medical payments and comprehensive coverage will rise for some customers and fall for others.

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

The insurer announced last month it is reducing overall rates for customers in Alabama by an average of 2 percent. That rate adjustment, which took effect Nov. 21, is expected to save policyholders statewide more than $10 million a year.

In a similar move, the company cut rates for Georgia policyholders by a statewide average of 2.2 percent due to an expected drop in the number and size of claims for damages.

State Farm officials say those reductions, which also kicked in last week, will save customers more than $23 million annually.

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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