State Farm Mutual will reduce its auto premiums in New York state by an average of 5 percent, according to New York Acting Superintendent of Insurance Howard Mills. The savings are estimated at $47 million for 2005.
In addition, State Farm Fire & Casualty is cutting auto rates by an average of 4 percent, producing additional savings of about $6 million.
State Farm Mutual, which also cut rates twice in 2004, insures 1.1 million private passenger vehicles in New York State, representing an 11.3 percent market share. State Farm, Allstate and GEICO insure the largest number of New York drivers. GEICO is already implementing a 6 percent rate reduction for this year.
The reduced rates for State Farm auto policyholders are effective on April 1, 2005 for new business and May 1, 2005 for renewals.
State Farm is the seventh insurer to seek and win Department approval for auto rate reductions. The others are GEICO, Progressive, Nationwide, MetLife, Amica Mutual, and Travelers. The combined savings from all of these approved rate filings are now estimated at more than $250 million.
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