Liberty Mutual
rolls back premiums

It is the latest to respond
to a state demand for lower rates
on minimum no-fault policies

By Russ Lynch
Star-Bulletin

Liberty Mutual Group, the latest automobile insurance company in Hawaii to meet the state mandate for lower no-fault premiums, says it will lower its rates for 1998 minimum no-fault coverage by 24.6 percent.

The company also posted a 10 percent reduction in premiums for its comprehensive and collision auto policies, which are outside the requirements for minimum coverage, and is lowering homeowners' insurance premiums as well.

Boston-based Liberty Mutual, which has about 25,000 automobile policies in the islands, said it is responding to the state insurance division's demand that insurers lower their rates for minimum coverage by at least 20 percent for policies in effect starting Jan. 1.

"Because of our Hawaii policyholders' safe driving habits, Liberty Mutual experienced fewer losses than expected over the past two years," the company's regional vice president, John Schulte, said in a statement.

The company said it is voluntarily lowering its Hawaii homeowner insurance rates by 12.5 percent, starting tomorrow.

The company lowered homeowner premiums 10 percent in June.

Insurers are rolling back rates under a measure passed by the Legislature earlier this year that requires lower premiums in return for language discouraging lawsuits over minor claims and reducing minimum amounts of some forms of mandatory coverage.