Tuesday’s Post 11/7/11 –  The auto insurance company State Farm is planning to effect a reduction in auto insurance premiums for its customers in Alabama. This move is intended to pass on the benefits of a less risky operating climate that State Farm projects will prevail in the coming years. A company spokesperson says that the company expects claims from its customers in the coming years to be fewer in number and to be less costly and, thus, plans to pass this benefit on to customers in the form of lower auto insurance premiums.  State Farm is ranked as the number one car insurance provider in the United States and the 34^th largest company in the country in all industry categories.  The company has a reputation for offering top-notch customer service and putting their money where their mouth is. It is not surprising, therefore, that they decided to lower insurance premiums. It should also be remembered that the company experienced a considerable rise in their loss ratio after the hurricanes that ravaged the country earlier this year. The reduction in premiums will be effective the 21^st of November and will translate into a two percent cut in auto insurance premiums for some of State Farm’s customers. This will save $10.2 million in auto insurance premiums  for  customers in the state of Alabama. A spokesman with the Department of Insurance in Alabama  added that State Farm decided to do this of its own accord and no request came for a regulatory body. One of the auto insurance coverages that stands to help from this move is collision coverage  The actual premium rate for a customer will depend on factors such as vehicle mileage, vehicle type, and the type of policy and the residence of the policyholder.

-Mike

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602