The fourth largest auto insurer in California said it plans to reduce rates as much as 7 percent, becoming the first carrier to implement new regulations that reduce a driver's location as a rating factor.
The Automobile Club of Southern California said its insurance affiliate's rate reduction would save nearly one million policyholders a total of $133 million, or an average of $134 per policy.
It said the insurer was able to reduce rates through a reduction in the number of bodily injury, property damage and collision claims.
Premium reductions would vary depending upon the type of coverage, applicable discounts and type of car, the Club said. The Club's insurer has reduced rates by nearly 29 percent since 1990, it added.
The new insurance department regulations, which went into effect in August, have been challenged in a suit that includes three insurance trade groups as plaintiffs. That action is pending before the Sacramento Superior Court.
The California Department of insurance has asked for a summary judgment in the case and arguments are due later this month.
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