Calif. Notes Rate Cut for Bay Area Homeowners

California Insurance Commissioner Steve Poizner announced a 10.6% rate cut for California homeowners, a total savings of $50 million for California State Automobile Association Inter-Insurance Bureau (CSAA-IIB, or AAA of Northern California) customers, including more than $28 million in savings for Bay Area homeowners.

AAA of Northern California initially filed for a 7.7 percent decrease in their homeowners insurance rates. After reviewing their rate filing application, Poizner approved a 10.6 percent decrease in rates.

As a result of this reduction, AAA of Northern California customers will save an average of about $130 per year, per policy. An average policy is about $1200. These savings will go into effect on Aug. 1, and will apply to renewing policyholders and new customers. AAA of Northern California is the fourth largest homeowners insurer in California, with about 400,000 policyholders and 6.7 percent market share.

Since elected, Poizner has approved nearly $1.7 billion in rate reductions for California drivers and homeowners. Recent rate cuts include:

• $255 million rate reduction for Allstate homeowners insurance policyholders
• $30 million rate reduction for Fireman's Fund homeowners insurance policyholders
• $61 million rate reduction for Mercury auto, renters and homeowners insurance policyholders
• $250 million rate reduction for Allstate auto insurance policyholders
• $100 million rate reduction for AAA of Northern California customers
• $65.8 million rate reduction for GEICO customers

In April, Poizner issued new regulations to clarify and streamline the prior approval rate system, making the rate filing process more efficient, accurate and transparent. The Commissioner's regulations also help to speed the approval of rate reductions so consumers can see savings sooner.