State Farm to lower Md. premiums 1.6%

Maryland Watch

September 03, 1997

State Farm Mutual Automobile Co. said yesterday that it will decrease its Maryland premiums by an average of 1.6 percent starting Oct. 1.

It is the company's first premium reduction for its comprehensive, collision, personal injury and liability coverage since a 4.4 percent cut in October 1993.

"The reason we're able to do this is because we're not paying as much [for] claims," said Charles Ingram, a spokesman for State Farm in Frederick. "Other factors can be a decrease in collision costs, fewer accidents, or competition in the marketplace that is driving down the cost to repair a car."

Although the average of the four coverage premiums will drop, prices will increase, on average, for personal injury protection, because of increased litigation and health care costs, Ingram said.

Premiums will drop for collision and comprehensive coverage, which pays for losses from theft, storm damage, fire, vandalism and broken glass.

Ingram said the new premiums should be in effect for about a year, until the company must file another claim experience report with the state insurance commissioner's office.

Pub Date: 9/03/97

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