Further evidence that the personal auto market is far from making a complete turn: State Farm, California’s largest insurer of passenger cars, will drop rates in the state an average of 5.0 percent, effective Sept. 15. The drop marks State Farm’s sixth decrease since 1995, adding up to a drop of 25.7 percent over the last five years.
The nation’s largest auto insurer also announced that it would return $182.6 million in dividends to policyholders in California this year. Since 1997, the insurer has returned $447.9 million in dividends to its policyholders. The new rate decrease will save California customers approximately $98.8 million. State Farm provides coverage for about 3 million cars in the state.