State Farm to cut
isle auto rates

Insurance premiums will
be reduced by an average
of 10.1 percent

From staff and wire reports

State Farm Mutual Automobile Insurance Co. today said it will reduce its overall rates in Hawaii an average of 10.1 percent as of Nov. 15.

In January, State Farm lowered its rates 15.2 percent. In June, large local insurers, including Allstate Insurance Co. and First Insurance Co., slashed rates by about 25 percent after State Farm announced it was returning about $11.3 million in dividends to its 119,00 auto insurance customers in Hawaii.

For years, Hawaii drivers paid the highest auto insurance rates in the nation. But reform in auto insurance legislation have helped bring those rates down.

State Farm, the isles' largest auto insurer, today said that since last November, it has returned almost $23 million in dividends to Hawaii customers.

With the latest rate cut, average customers will see lower premium costs for liability coverages and for personal injury protection coverage, State Farm said.

Average premiums for collision coverage and for the comprehensive coverage, which pays for losses from theft, storm damage, fire, vandalism and glass breakage, will also drop, it said.

The company also will increase to 10 percent from 5 percent its discount for customers with qualifying homeowners, life or health insurance policies with State Farm. There is also a larger multiple-car discount.

The changes in premiums for individual motorists will depend on coverages carried, where they live, the kind of car insured, who drives it and how much it is driven, State Farm said.