Insurer cutsStar-Bulletin staff
isle auto rates
First Insurance Co. of Hawaii says it will reduce its personal automobile insurance rates by about 14 percent, effective Aug. 1.
The company said the decrease is expected to save its 13,000 policyholders $3.2 million a year. Last year, First Insurance cut rates by about 10 percent.
Personal Package Policy holders can expect to save about 17.5 percent on their auto insurance premiums, said company officials.
The reductions coincide with a new state insurance law that took effect Jan. 1, 1998. In a move to discourage minor lawsuits through a $5,000 deductible for court awards, the state mandated 20 percent to 35 percent reductions in basic rates. Mandatory medical coverage was also lowered to $10,000 from $20,000.
Controlling about 9 percent of the auto insurance market, First Insurance sells a range of personal and commercial products including auto and workers compensation.