Cheap California Auto Insurance Cut By 8%

Cheap California auto insurance will be coming to State Farm's 3.3 million policyholders. Soon, they will see a decrease in their premiums, as the California Department of Insurance approved an 8%, $219 million rate cut.

As the largest California auto insurer, State Farm has 3.3 million auto insurance policies in California, covering 13% of the auto insurance market. Under the newly approved reduced rates, California policyholders will save an average of about $66 per policy per year.

As an example, cheap California auto insurance for State Farm policy holders in Los Angeles County will save a total of $50 million per year under the new rate reduction, with the average L.A. driver saving $75 per year.

State Farm's California Senior Vice President Rand Harbert said, "Our premiums are based on what we calculate we will need in the future to meet the obligations we have to our policyholders. And because our recent experience and trends are favorable, it allows us to pass along those savings to our customers in the form of lower rates."

"We are pleased to be able to help our customers at a time when many people are struggling financially due to the economic challenges we all face," Harbert added.

The effective date for the new rate cut is July 6, 2009. So it looks like cheap California auto insurance is on its way to all. And in this economic climate, its good to have a bit of positive news for a change.