Auto Insurance Consumers Can Reap Benefits of Friendly Market; Californians Enjoy Unprecedented Auto Insurance Rate Decreases.

LOS ANGELES--(BUSINESS WIRE)--June 14, 1999--

While auto insurance rates decreased nationwide for the first time in more than a decade last year, California has seen rates drop by as much as 15% over the past several years.

With the consumer-friendly marketplace, now is a good time for drivers to take steps to keep some of these savings in their pockets.

There are many factors that influence what consumers pay for insurance. California has seen rates fall due to many factors, including a crackdown on insurance fraud, enhanced vehicle safety, a drop in auto theft, fewer incidents of drunken driving and a dramatic decrease in lawsuits.

California's crackdown on fraud has included classifying insurance fraud a felony and establishing a statewide fraud bureau. Insurers have also set up Special Investigative Units that have saved them about $10 for every dollar invested -- savings that are passed on to consumers in today's competitive marketplace.

Consumers pay for the high cost of going to court directly in higher liability insurance premiums. Liability insurance rates reflect what insurance companies pay out for their policyholders' legal defense and any judgments against them.

In 1988, a Supreme Court decision dramatically reduced the number of insurance-related lawsuits. Since then, the cost of bodily-injury claims has decreased steadily, along with what drivers pay for liability insurance.

By taking some simple steps, car owners can take advantage of the changing marketplace -- perhaps saving themselves hundreds of dollars. WIIS recommends that consumers consider the following before purchasing or renewing their auto insurance policy.

-- Shop around. California's automobile insurance market is

extremely competitive and many companies are reducing their

rates.

-- Consider raising your deductible. Increasing your deductible

from $200 to $500 could reduce your collision and comprehensive

cost by 15% to 30%.

-- Inquire about discounts. Many insurers offer discounts for

such things as low mileage, air bags, anti-lock brakes,

anti-theft devices and good student drivers.

-- Consider insurance when purchasing a vehicle. Cars that are

expensive to repair, or that are a favorite target for thieves,

have much higher insurance costs.

For a copy of "Nine Ways to Lower Your Auto Insurance," send a self-addressed, stamped envelope to WIIS, 3530 Wilshire Blvd., No. 1610, Los Angeles, Calif. 90010.

The Western Insurance Information Service is a non-profit, non-lobbying media relations organization supported by the property/casualty insurance industry. WIIS has spokespeople in both Northern and Southern California. For more information or to schedule an interview call media relations at 800/397-1679.