State Farm Auto Rates Down In 5 States
By Steve Tuckey
NU Online News Service, Dec. 22, 1:25 p.m. EST?State Farm has announced a series of auto rate reductions in five states of up to 4 percent, effective Jan. 1.[@@]
In Alabama, the rate will go down an average of 4 percent for an annual savings of $21.2 million for the state's policyholders. Colorado customers will see their rates go down 3.2 percent for an annual savings of $18.2 million. In Mississippi, the reduction will amount to an average of 2.1 percent for an annual savings of $9.1 million. South Dakotans will receive a 1.3 percent reduction for an annual savings of $890,000. And finally, Tennessee policyholders will see a 2 percent reduction for an annual savings of $12. 2 million.
State Farm spokesman Dick Luedke said the reductions in part stem from a nationwide trend of lower claims costs.
"And it is definitely a function of decreased frequency rather than severity," he said.
Numerous state-specific factors also helped fuel the reductions, such as enactment of tort law in Colorado.
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