USAA Gives California Customers 14.9 Percent Reduction in Homeowners Insurance Rates
Home insurance company USAA is reducing rates for the majority of its California customers by an average of 14.9 percent. This news came from California Insurance Commissioner Dave Jones in one of his most recent announcements.
Rate Reduction to Benefit about 200,000 Policyholders
Jones stated USAA Property and Casualty Insurance Group intends to lower its homeowners insurance rates for approximately 200,000 policyholders in California to help them better afford coverage.
USAA’s decision to shift its rates downward has left Jones very pleased. He expressed his satisfaction regarding the rate reduction and the fact that it will help customers financially in the tough economic climate their facing in the state.
There’s no doubt he’s had his share of fights with insurance companies over their rates. In recent years, numerous companies have pushed to imposed higher rates on policyholders, including Blue Shield of California’s recent push to increase its health insurance rates to 59 percent before ultimately canceling its decision.
Earlier this month, a California assembly bill was even introduced to give regulators in the state the power to reject rate increases attempted by insurance companies.
Other Companies Lower Their Rates
The commissioner announced that some other companies have also recently reduced their rates for homeowners insurance customers, including:
- First National Insurance Company of America – 2.24 percent reduction
- Grange Insurance Association – 6.1 percent reduction
- Topa Insurance Company – 9.71 percent reduction
In addition to these homeowners insurance companies, Tokio Marine & Nichido Fire Insurance Co., LTD also reduced its auto insurance rates by 4.65 percent.
Jones believes these companies are on the right track to making insurance more affordable for customers. Let’s hope that this pattern continues as the economy makes its way toward recovery.