Rate cuts.Rate Cuts: state Farm Mutual Automobile Insurance, the state's largest insurer, said last week that it plans to cut the premiums of nearly all of its 3 million California customers by an average of 8 percent and will begin setting rates based on driving records instead of ZIP codes zip code System of postal-zone codes (zip stands for “zone improvement plan”) introduced in the U.S. in 1963 to improve mail delivery and exploit electronic reading and sorting capabilities. . The state's second-largest insurer, Farmers Insurance Group, also said it would comply with the order by Insurance Commissioner John Garamendi John Raymond Garamendi (born January 24, 1945) is a U.S. politician and a member of the Democratic Party. He became the 46th Lieutenant Governor of California on January 8 2007. to fully comply with the requirements of Prop 103. However, Farmers did not say whether it would lower overall rates. In July, the Automobile Club of Southern California The Automobile Club of Southern California was founded December 13, 1900 in Los Angeles as one of the nation's first motor clubs dedicated to improving roads, proposing traffic laws and improvement of overall driving conditions. and USAA USAA United Services Automobile Association USAA Urban Superintendents Association of America USAA United States Achievement Academy USAA United States Arbitration Act of 1925 USAA United States Axemen's Association USAA United States Air-Table-Hockey Association were the first major insurers to drop the ZIP code standard. It's estimated that Californians will save about $200 million beginning with policies that renew in January. |
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