State Farm Corporate Headquarters "Light it Up" Bloomington, IL, in support of essential workers.
Jake. From State Farm. Called with good news! State Farm is cutting rates due to driving behaviors during the ongoing pandemic.
As driving behaviors evolve during the COVID-19 pandemic, State Farm says it continues to identify ways to support customers. Based on current trends, the insurer says its working to reduce auto rates in every state. The national average for those rate reductions is 11%, which will save customers a total of approximately $2.2 billion. Rate changes in some states are subject to regulatory approval and customer rate reductions will vary based on their individual renewals.
“Current State Farm driving data and claims experience show a considerable decline in miles driven and fewer accidents,” said State Farm Senior Vice President Kristyn Cook-Turner. “As a result, we’re looking for ways to continue supporting our customers while we monitor and adjust to trends.”
State Farm is reducing auto insurance rates in Texas by an average of 12.4%. This rate reduction will save 3.2 million State Farm customers in Texas a total of $397 million.
The newly announced rate cuts are in addition to an evolving Good Neighbor Relief Program in which State Farm previously announced up to a $2 billion dividend, flexible customer payment options and philanthropic relief. Together, State Farm auto customers should see about $4.2 billion in savings.
Customers can experience additional savings by signing up for Drive Safe & Save, which includes a premium discount for participation. Customers are encouraged to visit with their State Farm agent about individual policies, coverages and other discount opportunities. Read more about the wats State Farm is supporting customers here.
I would expect to see other insurance companies follow suit to remain competitive.