State Farm Lowers Auto Rates in Georgia

<p>Lower-than-expected claims have allowed State Farm to decrease automobile insurance rates in Georgia by an average of 1.5% statewide.</p> <p>The new rates are to become effective Aug. 17, the company said in a statement. State Farm is the largest automobile insurer in the state, with nearly $1.17 billion in direct premiums written, according to A.M. Best data.</p> <p>Changes will vary depending on the policyholder but premiums for liability, medical payments, collision and comprehensive coverages will go down for many, said State Farm. The latest reduction in rates equals an annual savings of $15.9 million for State Farm customers in Georgia.</p> <p>State Farm chose to keep rates relatively flat late last year when a new law was passed Oct. 1 that allowed file-and-use for private passenger auto rates above mandated minimum liability limits. As many as 14 companies looked to raise rates after the law was passed, Commissioner John Oxendine said at the time (BestWire, Dec. 2, 2008). State Farm also lowered rates an average of 1.5% in February.</p> <p>State Farm Group currently has a Best's Financial Strength Rating of A++ (Superior).</p> <p>The top five writers of private-passenger automobile insurance in Georgia, according to 2008 A.M. Best state/line product information based on direct premiums written, were: State Farm Group, with 22.3%; Allstate Insurance Group, 13.1%; Progressive Insurance Group, 11.6%; Berkshire Hathaway Insurance Group, 7.9% and USAA Group, 5.4%.</p> <p>(By Chad Hemenway, associate editor, BestWeek: Chad.Hemenway@ambest.com)</p>