Auto Club to Cut Car Insurance Rates 5.4 Percent

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The Automobile Club of Southern California, the state’s fifth-largest car insurer, is expected to announce a 5.4 percent rate cut Friday that will save 1 million customers an average of $100 per vehicle.

The new rates become effective April 1 for new policies and those renewed on or after that date. The auto club cited a drop in policyholder loss claims during the last two years as well as its tight controls on operating expenses for creating the flexibility to lower premiums.

California Insurance Commissioner Steve Poizner, who approved the auto club rates, praised the company for its “consumer-friendly and smart business practices.”



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