GEICO is lowering rates an average 6 percent for more than 125,000 Hawaii policyholders beginning on Feb. 1.

The rates affect new customers and current policyholders renewing after March 16 and comes as local residents find ways to reduce spending in a severe economic downturn.

“Every one of our policyholders should receive a decrease for the same driving record and same coverages,” said Tim Dayton, branch manager for the Hawaii office. “Our loss history over the last couple years has been very good. It’s a good time because of the economy to reduce our rates.”

Premiums for individual motorists will vary based on the type of coverage, geographic area, vehicle, driving record and other qualified discounts.

Geico is Hawaii’s largest auto insurance carrier with nearly 8.5 million policyholders nationwide, including 122,800 automobile and 2,200 motorcycle policies in the islands.

The insurer generates about $150 million in premium revenue annually from its Hawaii auto insurance business. The rate decrease is expected to reduce revenue by approximately $9 million this year if the number of policyholders remains the same.

“We think it’s prudent; it’s really important for us to keep our current customers,” Dayton said. “This is the right thing to do.”

The company, which has 175 local employees, operates in every state except Massachusetts.