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Insurance Commissioner Poizner Announces $101 Million Rate Reduction For Auto Club Policyholders

(LOS ANGELES, Feb. 6, 2009) -- Insurance Commissioner Steve Poizner today was joined by Thomas V. McKernan, CEO of the Automobile Club of Southern California, to announce a $101 million rate reduction for Auto Club automobile insurance policyholders in California. This represents an average decrease of 5.4 percent.

“I am thrilled to approve $101 million in savings for Auto Club policyholders,” said Commissioner Poizner. “AAA exemplifies consumer-friendly and smart business practices by passing company savings on to their policyholders. I’m very pleased to help Californians to keep more of their hard-earned money – savings that many families will certainly welcome.”

As the fifth largest auto insurer in the state, the Auto Club insures over two million California vehicles. Under the newly approved reduced rates, policyholders will save an average of about 5.4 percent, or about $100 per policy per year – a total of $101 million. Rate reductions will go into effect for new or renewed policies after April 1, 2009.

“I encourage all insurance companies to follow the example set by AAA in putting consumers first,” continued Commissioner Poizner. “AAA of Southern California has consistently stepped up to the plate by working to maintain affordable rates for consumers. This rate reduction further demonstrates the company’s professionalism and commitment to serving its policyholders.”

“We want to thank the Commissioner for approving our rate decrease,” said Thomas V. McKernan, CEO of the Auto Club. “This is the second major auto rate reduction in three years, helping to fulfill our ongoing commitment to offer our members the best insurance at the best possible price. With this rate reduction we will have saved policyholders $234 million since 2006.”
The Automobile Club of Southern California, the largest member of the AAA federation of motor clubs, has been serving Southern California since 1900. Today, the Auto Club’s members benefit by roadside assistance, insurance products and services, travel agency, financial products, automotive pricing and buying programs, automotive testing and analysis, trip planning services and highway and transportation safety programs. Information about these products and services is available on the Auto Club’s Web site at

CST 1016202-80 Copyright © Automobile Club of Southern California. All Rights Reserved.
The Automobile Club of Southern California is a member club affiliated with the American Automobile Association (AAA) national federation and serves members in the following California counties: Inyo, Imperial, Kern, Los Angeles, Mono, Orange, Riverside, San Bernardino, San Diego, San Luis Obispo, Santa Barbara, Tulare, and Ventura.