Contact Information: Contact: Carol Thorp or Jeffrey Spring 714-885-2333
Seven Percent Auto Rate Reduction for Auto Clubs Insurance Affiliate Starts December 1
| Source: Automobile Club of Southern California
LOS ANGELES, CA -- (MARKET WIRE) -- November 30, 2006 -- As an early holiday gift to policyholders,
the Automobile Club of Southern Californias affiliated insurance company
is reducing auto insurance rates by an average seven percent starting
December 1 for new and renewing policyholders. Current policyholders will
receive the new rates as their policies are renewed. At the same time, the
Auto Clubs insurance affiliate will implement new Department of Insurance
regulations that reduce the effect of where someone lives, the first
insurer in the state to do so.
The rate reduction, approved by state insurance commissioner John Garamendi
in September, should save nearly one million policyholders a total of $133
million or an average of $134 per policy. The Auto Clubs insurance
affiliate, the fourth largest auto insurer in the state, was able to reduce
rates due to a reduction in the number of bodily injury, property damage
and collision claims.
The amount of the adjustment to individual policies will vary, depending
upon the type of coverage, applicable discounts and type of car. With this
reduction, the Exchange has reduced rates by nearly 29 percent since 1990.
In addition to reduced claims costs, weve continued to work hard at
reducing operating costs and improving efficiency, said Jim Gilmartin,
senior vice president of insurance operations. For the fifth consecutive
year, the Interinsurance Exchange of the Automobile Club was ranked in the
top five nationally for overall customer satisfaction in auto insurance by
a leading consumer satisfaction study.
In 1991, the Auto Club's insurance company became the first major insurer
to provide rebates to policyholders as required by Proposition 103. Then
and now, we saw a way to work within the regulations and continue to offer
competitive rates to members, added Gilmartin.
The Automobile Club of Southern California, the largest member of the AAA
federation of motor clubs, has been serving Southern California since 1900.
Today, the Auto Clubs members benefit by roadside assistance, insurance
products and services, travel agency, financial products, automotive
pricing and buying programs, automotive testing and analysis, trip planning
services and highway and transportation safety programs. Information about
these products and services is available on the Auto Clubs Web site at
www.AAA.com.