2008 Woodie Awards
Insurance firms save drivers millions
Firms to reduce rates, but Allstate rates will increase
Sarah-Dale Simpkins
Issue date: 10/30/07 Section: News
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A number of Mississippi insurance firms are planning to reduce their average automobile rates, while Allstate is planning an average rate increase.
On Nov. 12, State Farm Mutual Insurance will reduce automobile insurance rates an average 3.6 percent, saving consumers $12.3 million.
State Farm insures a quarter of Mississippi's automobiles, approximately 500,000 customers, making it the largest insurer in the state.
State Farm Fire and Casualty, which insures automobiles to high-risk customers, will also decrease rates an average of 4 percent.
Other companies that have received approval from the Mississippi Insurance Department to decrease rates are Travelers with 0.5 percent, and Southern United Fire with 0.03 percent.
Nationwide customers will see no changes in their rates, but on Nov. 19, Allstate will enact a 2.2 percent rate increase.
"Certain companies are reducing their rates and unfortunately a few are raising some," Mississippi Insurance Commissioner George Dale said, "but overall rates are beginning to inch downward."
David Majors, State Farm spokesman, said the firm is constantly looking at factors that will allow reductions in average auto rate premiums.
"We've had a favorable claim experience in Mississippi, which means that we've had few claims admitted and the costs to settle our claims have been favorable," Majors said.
He said customers can look to see rate reductions on their next renewal dates beginning as soon as Nov. 12.
Majors said not everyone will benefit from the reduction as it is not guaranteed to reach every customer.
"It's an average rate decrease," Majors said. "Some people could see more of a decrease and because of other factors some could see rate increase."
Dale said deciding factors of premiums are the location in which a driver resides, the type of car and age.
Somewhere like Hinds County would have higher rates in comparison to smaller, rural areas because of higher occurrences of auto theft, he said.
On Nov. 12, State Farm Mutual Insurance will reduce automobile insurance rates an average 3.6 percent, saving consumers $12.3 million.
State Farm insures a quarter of Mississippi's automobiles, approximately 500,000 customers, making it the largest insurer in the state.
State Farm Fire and Casualty, which insures automobiles to high-risk customers, will also decrease rates an average of 4 percent.
Other companies that have received approval from the Mississippi Insurance Department to decrease rates are Travelers with 0.5 percent, and Southern United Fire with 0.03 percent.
Nationwide customers will see no changes in their rates, but on Nov. 19, Allstate will enact a 2.2 percent rate increase.
"Certain companies are reducing their rates and unfortunately a few are raising some," Mississippi Insurance Commissioner George Dale said, "but overall rates are beginning to inch downward."
David Majors, State Farm spokesman, said the firm is constantly looking at factors that will allow reductions in average auto rate premiums.
"We've had a favorable claim experience in Mississippi, which means that we've had few claims admitted and the costs to settle our claims have been favorable," Majors said.
He said customers can look to see rate reductions on their next renewal dates beginning as soon as Nov. 12.
Majors said not everyone will benefit from the reduction as it is not guaranteed to reach every customer.
"It's an average rate decrease," Majors said. "Some people could see more of a decrease and because of other factors some could see rate increase."
Dale said deciding factors of premiums are the location in which a driver resides, the type of car and age.
Somewhere like Hinds County would have higher rates in comparison to smaller, rural areas because of higher occurrences of auto theft, he said.
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