Los Angeles, CA– (HISPANIC PR WIRE)–March 1, 2007–State Farm Mutual Automobile Insurance Company, the largest insurer of autos in California and in the nation, announced today its auto insurance policyholders in California will receive dividends totaling $195 million.
The dividend comes even as the company has reduced auto rates three times since 2004. The most recent was a 10.1 percent decrease approved by the California Department of Insurance earlier this year. State Farm Mutual’s California auto policyholders have saved nearly $600 million from those rate cuts. In addition, the company announced in January a $230 million homeowners insurance premium reduction for State Farm General Insurance Company, its California property insurer.
California policyholders will receive 15.0 percent of their semi-annual premium. Although the amounts will vary significantly, the average dividend per vehicle in California is $63.
Dividend payments will begin in early April and will continue throughout the year. Policyholders can expect to receive their dividend near the time of their policy renewal. Most customers will receive their dividend by check. Those policyholders receiving less than $15 will be credited to their State Farm renewal premium.
State Farm Mutual policyholders in 46 states, the District of Columbia and the Canadian province of New Brunswick will receive a total of $1.25 billion in the company’s latest policyholder dividend declaration program, approved by the State Farm Mutual board of directors.
With this dividend, State Farm Mutual will have returned $3.8 billion to auto policyholders companywide since 1997.
About State Farm
State Farm(R) insures more cars than any other insurer in North America and is the leading U.S. home insurer. State Farm’s 17,000 agents and 68,000 employees serve nearly 75 million auto, fire, life and health policies in the United States and Canada, and more than 1.6 million bank accounts. State Farm Mutual Automobile Insurance Company is the parent of the State Farm family of companies. State Farm is ranked No. 22 on the Fortune 500 list of largest companies. For more information, please visit statefarm.com(R) or in Canada statefarm.ca(TM).