Wisconsin State Farm Customers Could See Rates Decrease Next Year

Many State Farm Insurance clients in Wisconsin may start 2012 with savings on their automobile insurance, according to company reps that announced a reduction in their total rate by an estimated two and a half percent.

The reductions, slated to start on the 16th of January, will result in an almost eight million dollar savings to State Farm policyholders in the coming year.

State Farm Insurance is the #2 private auto coverage carrier in all of Wisconsin, based on 2010 statistics. In 2010, State Farm underwrote over three hundred million dollars in insurance premiums, which accounts for nearly thirteen percent of that market.

This decision comes on the heels of other overall reductions in other states during the past few months. As with those instances, this does not mean that each client will get a lowered premium payment when they look at their monthly premium side by side.

Officials for State Farm stated in a press release that the cost of purchasing liability insurance will drop for most of their Wisconsin clients; however, medical spending will increase for some and decrease for others, reflecting the same in auto coverage – which insures against damage for the client’s own car caused by a collision with another car, and comp coverage, which covers losses caused when a car is stolen, immolated, or lost due to natural disasters or intentional damage by another.

A rep for State Farm was unavailable for comment, but officials stated that premium changes on car insurance in other coverage states were the result of unanticipated low numbers and size of liability claims put in by clients in those locations.

State Farm announced a few weeks ago that it would reduce overall premiums in Illinois by an average rate of two percent. That modification, taking effect the 26th of December, will save clients nearly thirty four million dollars throughout the year. Similar declines in premiums have been cited in Alabama and in neighboring Georgia. The carrier states that rate decreases for drivers in each of the above states will most likely continue to vary, due to factors including area, type of vehicle, operator, and mileage rates.