California approves $65.8 million rate reduction for GEICO car insurance customers
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Eric Stauffer
Licensed Insurance Agent
Eric Stauffer is an insurance agent and banker-turned-consumer advocate. His priority is educating individuals and families about the different types of insurance coverage. He is passionate about helping consumers find the best coverage for their budgets and personal needs. Eric is the CEO of C Street Media, a full-service marketing firm and the co-founder of ProperCents.com, a financial educat...
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UPDATED: Jan 14, 2008
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SAN DIEGO – During his visit to San Diego, Insurance Commissioner Steve Poizner today was joined by GEICO officials to announce his approval of their 10.8% rate reduction in personal auto insurance policies. This enormous reduction translates to a whopping $65.8 million in overall savings for GEICO customers. Commissioner Poizner also announced today GEICO’s early compliance with the Department of Insurance auto rating factor regulations, rewarding good drivers for their behavior.
"I am pleased to announce that GEICO is passing on tremendous savings to its policyholders," said Commissioner Poizner. "As a top auto insurer in California, GEICO is an excellent example that insurers can serve the best interests of its customers and operate profitably at the same time."
Commissioner Poizner ordered the Department of Insurance (CDI) Rate Filing Bureau to process GEICO’s rate reductions quickly, so he could approve the reductions and put money back into the pockets of GEICO’s 70,000 San Diego policyholders and 436,000 statewide policyholders. Under the reduced rates, GEICO customers will save an average of $150 per policy. The new rates will go into effect August 30.
Additionally, GEICO has filed to become 100% compliant with CDI’s auto rating factor regulations, one year earlier than the mandated deadline. Under these regulations, rates will be based primarily on three factors: driving record, number of miles driven, and years driving experience. Under old regulations, rates were heavily influenced by other optional rating factors, such as marital status, gender, and zip code. GEICO’s timely compliance with the auto rating factor regulations will help reward good drivers through lower premiums, instead of penalizing them for where they reside.
"How a person drives is more important than where a person lives, and I applaud GEICO’s efforts to accurately evaluate customer premiums by fully implementing our auto rating factor regulations," added Commissioner Poizner. "GEICO has set an example of leadership and excellent customer service for all insurers in California. This is great news for policyholders."
Source: GEICO Car Insurance Press Release