State Farm Cuts Auto Rates, Pays Dividends

The Capital-Journal

State Farm Mutual Automobile Insurance Co., the largest auto insurer in Kansas, will lower its insurance rates in Kansas 3.6 percent and give $19.8 million in dividends to its policyholders.

Kansas policyholders will receive 15 percent of their semi- annual premium in a dividend paid by check. Although amounts will vary, the average dividend per vehicle in Kansas is $41.

Dividend payments will begin in early April and continue throughout the year. Policyholders receiving less than $15 will be credited on their State Farm renewal.

State Farm approved $1.25 billion in dividends for its customers in North America.

The lower auto insurance rate is effective April 23 and represents an annual savings of $9.7 million to State Farm's Kansas customers.

(c) 2007 Topeka Capital Journal. Provided by ProQuest Information and Learning. All rights Reserved.