As reported on California’s Department of Insurance webpage (www.insurance.ca.gov), Insurance Commissioner Steve Poinzer announced, together with the 21st Century Senior VP of the Western Region, Shannon Kelly, that there will be an auto rate reduction of $34 million dollars for policyholders in California.
This means that 21st Century auto policy holders in California will see their insurance rates decrease an average of 3.4%, or $50 per year, as noted by the Department of Insurance; some cities may even find that their auto rates decrease even more. For example, 21st Century policy holders in Los Angeles will save up to $80 per year; Sacramento $62 per year. The decreased auto insurance rates will come into effect for policies purchased or renewed after June 21, 2009.
Since taking office, Commissioner Poinzer has reduced auto insurance rates across the state, as well as insurance rates in other lines such as renters and homeowners. In all, he has made $2 billion worth of rate reductions. According to state law, the Commissioner must approve any rate adjustments to the insurer before the company can decrease their rates.
21st Century is once of the state’s top ten auto insurers, offering coverage to more than a million vehicles; this number equates to 5% of all drivers in California. Their auto insurance rate reduction will have a large impact on their California clients.
In the Department of Insurance article, President and CEO of 21st Century Insurance Anthony J. DeSantis is quoted as saying, â€œFor over 50 years, 21st Century Insurance has delivered great value and service to California drivers. That’s why we are pleased to be able to pass these savings onto our customers in the form of these lower rates – especially during this tough period in our economy.â€
21st Century is able to pass along these auto insurance rate reductions to their customers due to a decrease in the number and severity of automobile accidents. Safer driving means that it costs less for the insurance company to cover the driver, which then means that the cost to the driver decreases.
In California especially, where the budget crisis is still in full swing and unemployment continues to rise, these savings are very important to auto insurance holders.
In order to receive these reduced auto insurance rates, clients simply need to renew their 21st Century Automobile Insurance polices after June 21st, 2009, or purchase a new plan after the same date. This will ensure that these California drivers will benefit from this $34 million rate reduction in auto insurance, in that their auto insurance premiums will be decreased an average of $50 per year.