LOS ANGELES (Press Release)–California Insurance Commissioner Steve Poizner announced on Tuesday that hundreds of thousands of Farmers Insurance customers are eligible to receive an average rate reduction of 14.5 percent and a one time 10 percent insurance premium rebate, worth a combined total of up to $100 million.
“Farmers Insurance’s $100 million rate reduction is great news for consumers who we know are feeling the brunt of the state’s faltering economy,” said Commissioner Poizner at a press conference overlooking a Los Angeles freeway. “Californians deserve to have as many insurance companies competing for their insurance business as possible. I’m glad Farmers Insurance is a part of this trend.”
Customers of Farmers Insurance are insured through one of their two major auto insurance subsidiaries, Farmers Insurance Exchange and Mid-Century Insurance Co. Tuesday’s rate cut announcement applies to those under the Farmers Insurance Exchange banner. Farmers Insurance customers insured by the subsidiary, Mid-Century Insurance Co., are already receiving the new lower rate.
Those currently insured by Farmers Insurance Exchange and renew their policies between July 15, 2010 and Jan. 15, 2011 will receive a one-time 10 percent rebate on their premiums. That rebate is estimated to be worth approximately $50 per insured car or $32 million. In addition, those same customers will also receive an ongoing rate cut of approximately 15 percent worth an estimated $72 million.
Below is a summary of the rate decrease by media market:
| Media Market | Percent Rate Reduction |
| Los Angeles | 15.8% |
| San Francisco, Oakland, San Jose | 16.1% |
| San Diego | 14.9% |
| Sacramento | 15.1% |
| Fresno, Visalia | 9.8% |
| Palm Springs | 16.4% |
| Santa Barbara, Santa Maria, San Luis Obispo | 7.3% |
| Bakersfield | 6.1% |
Overall, Farmers Insurance insures about 2 million cars in California. Its Farmers Insurance Exchange subsidiary insures approximately 640,000 vehicles statewide.
Since Commissioner Poizner took office, he has worked to ensure an efficient and competitive auto insurance market and auto insurance rates have decreased by more than $1.3 billion.
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Preceding provided by State Insurance Commissioner Poizner