AAA of Northern California lowers rates 6.5%

California Insurance Commissioner, Steve Poizner, approved a major auto insurance rate reduction of 6.5% for AAA of Northern California which will result on $100,536,590 in savings for policyholders according to the announcement at the California Department of Insurance. AAA of Northern California is the sixth largest auto insurer in the state, insuring almost one million drivers in California.

Policyholders can expect to save an average of $106 per policy and the new rate goes into effect December 15th. More than 1/2 a million policy holders are in the San Francisco Bay Area and approximately 156,00 policyholders in Sacramento area.

AAA has also filed to become 100% compliant with the auto rating regulations almost one year before than the mandated deadline. Under the new regulations, rates will be based on driving record, number of miles driven, and years of driving experience. The old regulations were influenced by other rating factors such as marital status, gender and zip code.

AAA and all other auto insurance companies that have complied with these new rating factors, prior to the deadline, have been applauded.