State Farm Auto Rates Drop Again

State Farm® auto insurance rates declined 4.9 percent in 2007, the fourth consecutive year of rate level decline for the nation's largest insurer. State Farm's protection against the financial cost of auto accidents was 14.8 percent less expensive at year-end 2007 than it was at year-end 2003. State Farm's auto insurance rate level over this four-year period declined the most (29.2 percent) in New Jersey, where auto insurance costs have historically been the highest in the country. State Farm officials credit an improved regulatory environment there in addition to the steady decrease in claims. New York is second (27.0 percent). Colorado, Connecticut and Minnesota are third, fourth and fifth. Oklahoma, Arizona, California, Indiana and Massachusetts complete the top 10. In addition to the $4.5 billion reduction in premiums over the last four years, State Farm issued dividends in 2006 and 2007 to most of its 40 million policyholders totaling nearly $1.5 billion.