$4.5 Billion Reduction In Premiums
28 Feb 2008
BLOOMINGTON, Minnesota – State Farm has been cutting the insurance rates in ten U.S. states since 2003. In this four-year period $4.5 billion had been economised.
"We are thrilled to have been able to reduce the cost of auto insurance during a time when the cost of almost everything else has been increasing," said State Farm Vice President and Actuary Kathleen Pechan. "Partly because of our customers' safe driving habits, the frequency of auto accidents has been dropping since 2003."
In the last four years New Jersey declined the most (29.2 percent). Before the insurance costs had been cut, New Jersey had had the highest ones. It is followed by New York with 27.0 percent. The other states are: Colorado, Connecticut, Minnesota, Oklahoma, Arizona, California, Indiana and Massachusetts.
Actuary Kathleen Pechan states that the concentration on the long-term interests of the consumer is the reason why it has been working.
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