The California Department of Insurance has announced it has approved GEICO’s 10.8 percent rate reduction in personal auto insurance policies. The reduction should translate into $65.8 million in overall savings for GEICO customers. Commissioner Steve Poizner also recognized GEICO’s early compliance with the Department of Insurance auto rating factor regulations, rewarding good drivers for their behavior.
“I am pleased to announce that GEICO is passing on tremendous savings to its policyholders,” said Commissioner Poizner. “As a top auto insurer in California, GEICO is an excellent example that insurers can serve the best interests of its customers and operate profitably at the same time.”
Poizner said he ordered the Department of Insurance (CDI) Rate Filing Bureau to process GEICO’s rate reductions quickly, so he could approve the reductions and put money back into the pockets of GEICO’s 70,000 San Diego policyholders and 436,000 statewide policyholders. Under the reduced rates, GEICO customers will save an average of $150 per policy. The new rates went into effect August 30.
Additionally, GEICO has filed to become 100 percent compliant with CDI’s auto rating factor regulations, one year earlier than the mandated deadline. Under those regulations, rates will be based primarily on three factors: driving record, number of miles driven, and years driving experience.
Under old regulations, rates could be influenced by other rating factors, such as marital status, gender, and zip code. GEICO’s timely compliance with the auto rating factor regulations will help reward good drivers through lower premiums, instead of penalizing them for where they reside, CDIsaid.