21st Century Insurance Group, the state’s fifth largest auto insurer, and Safeco Insurance Cos., the eighth largest homeowners’ insurer in the state, are seeking to reduce rates for policyholders statewide, State Insurance Commissioner John Garamendi said Thursday.

California motorists and homeowners are expected to save about $96 million annually due to the proposed cuts. This reduction signals a victory by the commissioner in his battle to get companies to base rates primarily on driving safety, miles driven, and driving experience as opposed to basing them primarily on ZIP Codes.

Homeowners’ insurers have also begun to cut their rates significantly after Garamendi unveiled a California Department of Insurance report that found companies might have been charging excessive rates to customers. The study revealed that almost all of the top 20 homeowner insurers in the state spent just 25 to 40 cents of every dollar in premiums to settle policyholder claims

Shares in Woodland Hills-based 21st Century were unchanged in early trading Thursday at $15.10.