Rate Reduction Generates $38M In Savings For USAA Policyholders

May 13, 2014

Targeted News Service

SACRAMENTO, Calif., May 12 -- The California Department of Insurance issued the following news release:

Insurance Commissioner Dave Jones today announced an average 16.8 percent decrease for USAA homeowners and condominium policyholders in Sacramento County. The reduction will result in an average annual savings of $167 for local families.

"I am encouraged by USAA's enterprising decision to offer both a rate reduction and discount for Firewise communities, which demonstrates their commitment to California consumers," said Insurance Commissioner Jones. "In the current drought environment, with the increasing risk of a devastating wildfire season, I am hopeful that the decision of USAA will spur other insurers to consider similar discounts for wildfire mitigation."

The last rate change for USAA'sCalifornia policyholders was in 2011, when rates were reduced by 13.9 percent. USAA insures approximately 260,000 homeowners in California and is the 7th largest homeowners and 8th largest auto insurer in the state. The rate reduction is effective for policy renewals beginning October 1, 2014.

"This rate decrease is made possible in part by our industry-low expense ratio, and our members' efforts to maintain their homes and prevent losses," said Jeff Dixon, vice president of P&C insurance property product management at USAA. "USAA is committed to partnering with our members to prevent losses, which is why we're also introducing a new insurance discount for members in communities that are working together to reduce wildfire risks by forming a Firewise community."

The Firewise designation is a program sponsored by the National Fire Protection Association that recognizes neighborhoods where homeowners work together to prepare their homes to resist wildfire damage.

Other California counties will also see significant annual rate reductions:

* San Francisco - 14.2 percent for an average annual saving of $210.

* Los Angeles - 12.2 percent for an average annual saving of $138.

Since elected in 2011, Commissioner Jones has approved more than $1.8 billion in savings for California consumers and businesses.These savings resulted from the department's review of nearly 2,000 property-casualty rate filings under Proposition 103.

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Copyright:  (c) 2014 Targeted News Service
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