Cross-posted from California Department of Insurance:
Insurance Commissioner Dave Jones today announced a substantial decrease in homeowner insurance rates by USAA. The recent approval of the company's rate filing reduces rates for most of its California policyholders by an average of 14.9 percent.
"Today, I am pleased to announce that my department has approved a substantial homeowners rate reduction by USAA," said Commissioner Jones. "This is good news for the approximately 200,000 USAA policyholders, most of whom will receive a rate reduction as a result. Given the current economic conditions, we are elated to be able to help consumers keep more of their hard earned money and benefit from lower insurance premiums."
"USAA is committed to offering competitive prices to our members – America's military families," said Alice Gannon, SVP and Chief Actuary, USAA Property & Casualty Insurance Group. "As a result of our favorable trends in claims costs and our ability to keep our expenses among the lowest in the industry, we're pleased to be able to reduce rates for most of our California members."
"We are pleased that USAA is implementing this $40 million rate decrease, which will provide savings to hundreds of thousands of California homeowners," said Todd M. Foreman, a Consumer Watchdog staff attorney who worked with the Department and USAA on this rate reduction. "Voters enacted Proposition 103, and gave themselves a voice in the regulatory process to ensure this kind of savings."
Across the state, the decrease translates to an average of $185 per home annually. The rate decrease will become effective November 30, 2011. USAA members will begin receiving their policy renewal packets 60-days prior to renewal starting on September 30, 2011.
The last rate change for USAA's California policyholders was in 2006, when rates were reduced by 22.1 percent. USAA insures approximately 200,000 homeowners in California and is the 6th largest homeowners and 7th largest auto insurer in the state.
USAA's 14.9 percent rate reduction is the most recent rate decrease approved by the California Department of Insurance.
Since taking office earlier this year, Commissioner Jones has already approved homeowners and automobile premium rate reductions by the following companies:
First National Insurance Company of America reduced homeowner rates 2.24 percent
Grange Insurance Association reduced homeowner rates 6.1 percent
Topa Insurance Company reduced auto rates 9.71 percent
Tokio Marine & Nichido Fire Insurance Co., LTD. reduced auto rates 4.65 percent
Personal Express Insurance Company reduced auto rates 6.86 percent
These rate reductions have saved California consumers millions of dollars annually in premiums.
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Please visit the Department of Insurance Web site at www.insurance.ca.gov. Non media inquiries should be directed to the Consumer Hotline at 800.927.HELP. Callers from out of state, please dial 213.897.8921. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.