New State Farm homeowner’s insurance rates will save San Diegans an average of 12.4 percent on their policy payments beginning in April, the state Department of Insurance reported Thursday.
The agency-approved rates for State Farm, the largest provider of homeowner’s insurance in California, should equate to an annual savings of $100 for San Diego clients.
“As a major homeowner insurer in California, State Farm is demonstrating that insurers can serve customers well and operate profitably at the same time,” state Insurance Commissioner Dave Jones said. “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, the premiums of about 85 percent of the 1.6 million policyholders statewide will either decrease or remain the same under the new rates.
The rate reduction is effective for policy renewals beginning April 15.
The biggest decline for rates will be in Sacramento County — 21 percent.
The rate reductions, which follow hikes of 6.9 percent each in 2009 and 2010, are the result of a new structure that better matches prices and risks, according to the Los Angeles Times.