State Farm Cuts Ohio Auto Rates; Others May Follow

NU Online News Service, Feb. 23, 3:20 p.m.EST?State Farm Insurance Companies' move to cut autoinsurance premium rates in Ohio will likely be followed by otherauto insurers following suit to remain competitive in the state, aninsurance trade group predicted.[@@]

The forecast by the Ohio Insurance Institute, a Columbus,Ohio-based industry association representing property-casualtyinsurers and organizations in the state, was made after State Farmannounced Friday that it will reduce its auto premium rates in Ohioby an average of 4.1 percent beginning March 15.

State Farm, based in Bloomington, Ill., is currently the largestauto insurer in Ohio, commanding nearly 20 percent of themarket.

"We seem to have reached a point where the rates havestabilized," said Ohio Insurance Institute spokesperson MaryBonelli. She pointed out that another major auto insurer in thestate, the Columbus, Ohio-based Nationwide, also filed for adecrease recently.

"The fact that State Farm and Nationwide?which are two of thelargest private passenger auto writers in the state?have announceddecreases shows there is a good chance that other auto insurerswill take a look at their book of business here and see ifadjustments can be made to remain competitive," Ms. Bonelli toldNational Underwriter.

Ms. Bonelli added that Ohio already has an "extremelycompetitive" auto insurance marketplace, with some 420 companieswriting private passenger auto insurance in the state as of 2002.The average auto premium in Ohio was $637 in 2002, the latest yearfor which figures were available. That was some $144 below thenational average.