Effective March 9, State Farm Mutual Automobile Insurance Company, the largest insurer of autos in South Carolina and in the nation, is lowering its overall auto insurance rate level in South Carolina by an average of 2.1 percent. This represents an annual savings of $10.9 million for South Carolina customers. After this change is implemented, State Farm’s overall auto insurance rate level in South Carolina will be 12.0 percent lower than it was six years ago.

Using claim experience over the past several years, State Farm projects what the number and cost of future claims will be. Rates are set in accordance with that information in an effort to meet the promises made to policyholders. According to State Farm Vice President Reggie Gallant “As a mutual company owned by our policyholders, less than expected claims experience enabled State Farm to reduce rates. Given the current economic situation, we believe this announcement is especially welcome news for our policyholders.”

Premiums for liability and collision coverages are decreasing for most customers. The price of comprehensive and medical payments coverages is not impacted by this rate change. Comprehensive coverage pays for losses from such perils as theft, storm damage, fire, vandalism and glass breakage.

Overall premium changes for individual motorists will vary depending on factors such as the coverages they carry, the discounts for which they qualify, where they live, the kind of car insured, who drives it and how much it is driven.