21st Century to cut premiums for California drivers an average of $50
Customers of 21st Century Auto Insurance Co. will get an average $50 cut in annual premiums as part of a $34-million statewide rate reduction, California Insurance Commissioner Steve Poizner announced Wednesday.
The company, which was recently acquired by Farmers Insurance Group, insures more than 1 million California vehicles, representing about 5% of the private passenger car insurance market.
A Farmers spokesman cited drops in the frequency and severity of accident claims as factors in the decision to lower rates.
Annual savings on policies issued after June 21 will average $80 in Los Angeles County, $58 in San Francisco and $62 in Sacramento County.
The 3.4% average premium reduction is the latest in a series of price cuts for auto, homeowners and other types of insurance by major California auto companies since 2007.
Under California law, all insurers must gain approval from the insurance commissioner before rates can be raised or lowered.