Farmers Insurance has recently announced that a large number of customers living in the California area may be eligible for a rebate in the region of 10%. While this must be great news for motorists in the Golden State, the statement released in mid-July also hinted that Californian road users may also be in line for a 14.5% reduction on all future auto insurance quotes.
Customers who currently hold policies with the Farmers Insurance Exchange will be eligible for rebates and rate cuts if their renewal dates fall between July 15th 2010 and January 15th 2011. Rebate checks should begin arriving in February of next year and these will be to an average value of approximately £50. In total, the wave of auto insurance rebates and rate reductions look set to total somewhere in the region of $32 million. For consumers, this will amount to a colossal total of $72 million in savings next year. At the present time, Farmer Insurance is responsible for providing auto insurance coverage for almost 640,000 vehicles in the state of California alone.
The decision to apply rebates and rate cuts follows the amalgamation of the Farmers Insurance Exchange with sister company, Mid-Century Insurance. Jeff Daily, President of Personal Lines for Farmers Insurance, said “This agreement with the California Department of Insurance enables Farmers Insurance to streamline and balance our pricing, product and coverage offerings in California for the benefit of our customers and our agents”.