auto insurance rates

i'm california insurance commissionerdave jones and i'm pleased to announce today a substantial decision of the department of insurance. today we're announcing a 10.7% average rate reduction for policyholders who have geico autoinsurance the 10.7%

rate reduction will save over seven hundred thousand geico policyholders in california a total of ninety one million dollars. on average that means a savings of ahundred twenty seven dollars per year for geico policyholders. it's great news particularly uh... as wecelebrate having survived "carmageddon" here in los angeles. in the l.a. area in particular

l.a. policyholders of geico of whichthere are one hundred and one thousand will save two hundred thirty-eightdollars annually on their geico auto insurance. and in san diego where there are overninety eight thousand geico auto insurance policy holders the savings on average will be aboutone hundred sixty three dollars. so this is great news for policyholdersthroughout california as well as policyholders in the l.a. metro area and san diego and throughout the state.

ss the insurance commissioner i'mpleased to announce a we've approved this 10.7% reduction. it's consistent with what we're seeing in auto insurance rates across thestate. in fact just in the six months that i'vebeen insurance commissioner uh... we've announced a reduction inhomeowner rates of 14.9% for usaa insurance. a 2.24% reduction for homeowner rates for first nationalinsurance company of america.

a reduction of 6.1% for grange insurance association. a 9.7% reductionfor topa insurance company policyholders for auto insurance. and a4.65% reduction for tokio marine & nichido fire insurance company for auto insurance rates. so we believe that this will continue atrend of our ability to

announce savings for california auto andhomeowner policyholders. it's great news today here in losangeles, great news throughout the state of california. a 10.7% reduction forthe seven hundred thousand geico auto insurance policyholders. we're happy to take questions that you might have at this time. under california law for auto insurance all auto insurancecompanies have to file with the

insurance commissioner any rates. so in june they filed with theinsurance commissioner a rate filing and we reviewed that rate filing and determined that a 10.7% reduction was warranted. they've not challenged that reduction.this 10.7% reduction will go into effect on august 15th, 2011 so just a little under a month from now geico auto policy holders will see adramatic savings in their auto insurance rates.

yes we did announce earlier this year anumber of other auto insurance rate reductions uh... that includes uh... the uh... topa insurance company, a reduction of 6.1% uh... as well as a tokio marine & nichido fire insurance company which was in auto insurance reduction of 4.65% and personal express insurance company a6.86% reduction

uh... we're also reviewing a number of other rate filingsfor major auto insurers including the uh... a southerncalifornia auto insurance club uh... mercury insurance and others aswell and we anticipate uh... rate reductions are likely inthose cases too. we look very carefully at all of theauto insurance rate filings to make sure that people are only being charged what isabsolutely necessary to cover the operations of the insurance companies aswell as their lost cost, their claims and

what we're seeing across the uh... theindustry auto insurance industry is a reduction in claims both the number of claims as well as thelosses associated with claims and so as a consequence we're seeing a reduction in rates for premium payers. california is really unique in havingone of the most robust and aggressive rate regulatory systems. auto insurance, homeowners insuranceother property insurance all of those

rates are reviewed and regulated by theinsurance commissioner. interestingly though it may surpriseyour viewers to learn that i don't have that authority for health insurancethat's another big topic for many californians we're trying to get thatauthority extendeded to health insurance through a bill called assembly bill 52. today's announcement with regard togeico's auto insurance rates in the announcements we've made previously withregard to other auto insurers i think underscores the tremendous value of giving theinsurance commissioner the authority to

regulate not only auto and home ownersrates but also health insurance rates. absolutely. at today's uh... as insurance commissionerfor the state of california i'm pleased to announce 10.7% average reduction for the over seven hundred thousandgeico auto insurance policy holders in california. uh... this is great news for the sevenhundred thousand in the l.a. metropolitan area where we have one hundred and onethousand geico insurance

that means those policyholders in thel.a. metro area will see a savings of two hundred thirty-eight dollarsannually on average. in san diego what we have ninety eightthousand policyholders they'll see an on average one hundred sixty three dollars savingsper year this is a total of a ninety onemillion dollar savings for geico auto insurance policy holders statewideand on average statewide it means a savings of a hundred twenty seven dollarsannually for every geico policyholder.

any other questions? so i'll just close by saying that uh... here in los angeles residents survived"carmageddon" and now we're giving additional goodnews in terms of a reduction in their auto insurance rates so it's been a good week in southerncalifornia.

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