SAFECO Insurance Lowers California Auto Rates

6 July 1998

SAFECO Insurance Lowers California Auto Rates

    SANTA ANA, Calif.--July 6, 1998--SAFECO Insurance today announced it will begin rebating or crediting some of its 145,000 California auto insurance policyholders a total of $12 million in savings realized through safer California cars and driving habits, stricter statewide enforcement of traffic and safety laws and California's Proposition 213.
    SAFECO's move is designed to strategically reposition its insurance operations in California's huge and dynamic marketplace. "We've got to maintain a competitive edge in California," SAFECO Southern California Regional Vice President Jim Swegle said. "And we're starting by focusing on the customers we have right now."
    The rebate checks will start going out within a couple of weeks. Policyholders who pay monthly or on budget plans will be issued credits on their premium notices.
    Not all SAFECO policyholders will get a check or a credit, however. "We are primarily able to do this with our policyholders who have high levels of liability coverage and those who have multiple policies," Swegle said.
    However, SAFECO is lowering costs even further for their automobile insurance policyholders who switch their homeowners or renters insurance to SAFECO now. "In this case," Swegle said, "we'll double the discount we usually provide on auto insurance when we provide homeowners, too."
    SAFECO sees the rate reductions, discounts and rebates as timely tactical tools for its independent agents in California. "We want to be the premier company selling insurance and financial products through independent agents," Swegle said. "We think that keeping our agents excited about pricing flexibility helps."
    Founded in 1923 as the General Insurance Company of America, SAFECO is one of the largest diversified financial corporations in the country. It is now the 15th largest property and casualty company in the country following its 1997 acquisition of American States Financial Corporation.
    SAFECO also provides life and health insurance, surety commercial credit, asset management, insurance agency and financial services operations.