SAN DIEGO, Jan. 26, 2017 /PRNewswire-USNewswire/ -- This morning, Judge Katherine Bacal denied State Farm's request to block millions of dollars worth of insurance rate decreases from going into effect until February 13, 2017, Consumer Watchdog said today.
In November 2016, Insurance Commissioner Dave Jones ordered State Farm to reduce its overall renters and homeowners rates by 7%. Compared to the rates State Farm's 1.7 million customers are currently paying, the order would save people about $78.6 million per year. State Farm's customers were supposed to see these rate decreases on December 8, 2016.
State Farm challenged this rate decrease in civil court, and asked Judge Bacal to allow the insurer to keep overcharging its customers until the case ended – a delay that could last years. Judge Bacal said this delay was against the public interest and ordered State Farm to decrease its rates.
Citing a legal loophole, State Farm returned to the Judge Bacal today and asked her to delay the rate decrease until February 13, 2017. Again, Judge Bacal denied State Farm's request.
State Farm has not yet said when it will decrease its rates. Until it decreases rates, State Farm's customers will continue to pay about $215,000 per day more than they should for their renters and homeowners insurance.
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SOURCE Consumer Watchdog