Another insurer cuts California car insurance rates

"SACRAMENTO, August 23, 2006 11:50am

• Chubb says it’s slashing rates by 34 percent
• Also proposes higher liability limits

One of California’s major auto insurance firms is refiguring how it calculates premiums, following court rulings upholding Proposition 103, the auto insurance initiative approved by voters in the last century.

The Chubb Group of Insurance Companies says it is lowering its automobile insurance rates in California by an average of 34 percent.

Chubb also says it will offer new coverage options that it says address the unmet insurance needs of many Californians, “including high limits of liability protection in a state where the number of uninsured and underinsured motorists is among the highest in the nation.”

"Effective today, virtually every Chubb personal auto insurance policyholder in California will realize a rate reduction and will be offered a broader array of coverage options," says Kurt Morgan, California manager for Chubb Personal Insurance, in a written statement. "The assets and lifestyles of thousands of affluent Californians are at risk because they may be underinsured or underserved by their current auto insurer."

The rate reductions will vary based on factors such as driving record, as required by Prop 103, passed in 1988, as well as driver characteristics.

Some drivers will see a reduction of nearly 50 percent, says Chubb.

The company also says it has doubled to 10 percent its good-driver credit. It has introduced a companion credit ranging from 10 percent to 20 percent off the auto insurance premium for customers who also have a Chubb homeowners policy." Source: Central Valley Business Times