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California State Automobile Association Inter-Insurance Bureau (CSAA-IIB, or AAA of Northern California) customers in Nothern California will see a 10.6 percent rate cut, a total savings of $50 million, including more than $28 million in savings for Bay Area homeowners, the California Insurance Commissioner announced.

AAA of Northern California initially filed for a 7.7 percent decrease in its homeowners insurance rates. After reviewing their rate filing application, Commissioner Steve Poizner approved a 10.6 percent decrease in rates. As a result of the reduction, AAA of Northern California customers will save an average of about $130 per year, per policy. An average policy is about $1,200.

The savings will go into effect on Aug. 1, 2008, and will apply to renewing policyholders and new customers. AAA of Northern California is the fourth-largest homeowners insurer in California, with about 400,000 policyholders and 6.7 percent market share, the Department of Insurance indicated.

Source: CDI

Topics California Homeowners