State Farm Cuts Ohio Auto Rates; Others May Follow

State Farm Cuts Ohio Auto Rates; Others May Follow

NU Online News Service, Feb. 23, 3:20 p.m. EST?State Farm Insurance Companies' move to cut auto insurance premium rates in Ohio will likely be followed by other auto insurers following suit to remain competitive in the state, an insurance trade group predicted.[@@]

The forecast by the Ohio Insurance Institute, a Columbus, Ohio-based industry association representing property-casualty insurers and organizations in the state, was made after State Farm announced Friday that it will reduce its auto premium rates in Ohio by an average of 4.1 percent beginning March 15.

State Farm, based in Bloomington, Ill., is currently the largest auto insurer in Ohio, commanding nearly 20 percent of the market.

"We seem to have reached a point where the rates have stabilized," said Ohio Insurance Institute spokesperson Mary Bonelli. She pointed out that another major auto insurer in the state, the Columbus, Ohio-based Nationwide, also filed for a decrease recently.

"The fact that State Farm and Nationwide?which are two of the largest private passenger auto writers in the state?have announced decreases shows there is a good chance that other auto insurers will take a look at their book of business here and see if adjustments can be made to remain competitive," Ms. Bonelli told National Underwriter.

Ms. Bonelli added that Ohio already has an "extremely competitive" auto insurance marketplace, with some 420 companies writing private passenger auto insurance in the state as of 2002. The average auto premium in Ohio was $637 in 2002, the latest year for which figures were available. That was some $144 below the national average.