California Commissioner: $160M in Homeowner’s Rate Reductions

An average of a 12.6 percent insurance rate reduction is in store for California homeowners insured with State Farm General Insurance Co., according to an announcement from California Insurance Commissioner Dave Jones earlier this month.

The reduction will result in an average annual savings of $100 for homeowners statewide.

“As a major homeowner insurer in California, State Farm is demonstrating that insurers can serve customers well and operate profitably at the same time,” Jones said in a statement. “As the economy continues to recover, this rate reduction will no doubt alleviate some of the financial burden many homeowners are experiencing.”

According to State Farm, 85 percent of policyholder premiums statewide will either decrease or remain the same under the new rates. The rate reduction is effective for policy renewals beginning April 15.