OHIO Insurance rates to drop in March, State Farm says

Ohio's auto insurance rates are already below the national average.
COLUMBUS (AP) -- The Ohio Insurance Institute says other auto insurance companies in Ohio are likely to follow State Farm's lead in lowering rates.
State Farm, the largest auto insurer in Ohio, announced Friday it will reduce its rates an average 4.1 percent beginning March 15.
"There's a good chance other companies may adjust their rates as a result of State Farm's action," said Mary Bonelli, insurance institute spokeswoman. With about 400 insurers competing for business, Bonelli said, large companies can sway others. State Farm has 19.4 percent of the market in Ohio.
Reason for drop
Premiums for many State Farm customers will drop because the company is increasing the size of some of its accident-free discounts, company spokesman Brian Maze said. The amounts of the adjustments will vary depending on the type of coverage, the discounts customers qualify for, their place of residence and the type of car.
The last time State Farm dropped its auto rates was in 2000, when they fell 14.9 percent. Rates increased during the past three years: 3.8 percent in 2001, 5.3 percent in 2002 and 5 percent in 2003.
Rate increases for Ohio drivers in the past have been smaller than the national average. The top 10 auto insurers in the state raised their rates in 2003 an average of 4 percent, according to the Department of Insurance. The average auto premium in Ohio was $637 in 2002, the latest year for which figures were available. That was $144 below the national average.