State Farm Mutual Automobile Insurance Company said it intends to lower overall auto insurance rates in West Virginia and Kansas, thanks to tort reform and improved claims records.
In West Virginia, the company said it is lowering overall rates by 10.1 percent, effective July 8. The reduction represents an annual savings of $32.9 million to the state's customers insured by the carrier.
The rate reduction is in response to recent passage of a series of tort reforms at the urging of West Virginia Governor Joe Manchin III, said Matthew Greer, State Farm spokesperson for the Mid-Atlantic Zone.
Mr. Greer added that the company is following through on its pledge to the governor that if the state passed the reforms it would then be able to lower rates. He said the reduction is in anticipation of how much the company feels it will save through the reforms. He noted that other carriers are following through with their own reductions in the state.
The company said premium changes in West Virginia would vary according to individual risk profiles.
In Kansas, effective July 1, rates will drop an average of 3 percent, representing an annual savings of $8.2 million for policyholders, the company said.
Tara Eubanks, a company spokesperson, said the improved claims histories of drivers in the state accounted for the decrease, primarily on collision and comprehensive coverage. However, liability coverage could increase for some customers and go down for others. The company has also incorporated more pricing modules into its underwriting for customers to improve the underwriting of risks, she said.
The company said the reduction will translate into an overall rate decrease of 10.2 percent over what it was nine years ago.
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